ConocoPhillips Further Reduces Spending Plans, Swings to Big Loss
April 28 2016 - 8:30AM
Dow Jones News
ConocoPhillips again reduced its 2016 capital spending plans as
low commodities prices continue to take a toll on the energy
sector.
The Houston company swung to a first-quarter loss on asset
write-downs and pension-settlement expenses.
ConocoPhillips cut its 2016 capital spending budget to $5.7
billion, from February's lowered estimate of $6.4 billion. In its
earnings release Thursday, ConocoPhillips said the lower guidance
was mostly driven by reduced deep water exploration activity,
deferrals and lower costs across the portfolio.
ConocoPhillips has continued its efforts to reduce spending to
improve its cash flow and its balance sheet owing to a weak outlook
for oil prices and expectations that credit would tighten across
the industry. The company has slashed its quarterly dividend and
last year completed roughly $2 billion in noncore asset sales, part
of its efforts to improve its performance.
Over all, ConocoPhillips reported a loss of $1.47 billion, or
$1.18 a share, compared with a year-earlier profit of $272 million,
or 22 cents a share. Excluding one-time items, the loss was 95
cents, compared with a year-earlier loss of 18 cents. Total revenue
and other income slumped 37% to $5.02 billion.
Analysts polled by Thomson Reuters expected per-share loss of
$1.05 and revenue of $7.22 billion.
ConocoPhillips said average selling prices fell 38% from a year
earlier and production fell 2%.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
April 28, 2016 08:15 ET (12:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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