Canada's Encana reported a net loss of $612million - its fourth straight quarterly loss - as it said it would cut jobs by 20%, reduce its annual spending forecast and lowered shareholders' dividend as it absorbed the impact of plummeting oil and gas prices.
Exxon Mobil has announced estimated 2015 earnings of $16.2billion compared with $32.5billion a year earlier.
Total said it expects a drop in results for 2015 but does not plan to reduce its headcount as it looks to weather the low oil price. Chief Executive Patrick Pouyanne said the group had “financial capacity” to protect itself during the current decline.
Aggreko said today its gains from petrochemical and refining customers since July 1 had nearly cancelled out an adverse impact from weakness in oil and gas. The Scottish temporary power firm added its “resilience” against a challenging market backdrop allowed it to maintain guidance for 2015 profits of £250-£270million, down from £289million on revenue of £1.58billion last year. Chief executive Chris Weston said: “Whilst we are at an early stage in delivering the specific actions identified at our business review in August, I am encouraged with the progress we are making.”
Oil & Natural Gas Corp.’s second-quarter profit fell 11 percent as slumping crude prices eroded revenue at India’s biggest energy explorer. Net income fell to 48.4 billion rupees ($736 million) in the three months ended Sept. 30 from 54.4 billion rupees a year earlier, the state-owned company said in a statement Friday. The average of 25 analyst estimates in a Bloomberg survey was 46.6 billion rupees. Sales gained 1 percent to 205.6 billion rupees.
Marathon Oil said it plans to make a spending cut of around 29% after losses of $749million in the third quarter. The company said low commodity prices had prompted its move to write down the value of assets. Marathon, with operations in Texas and Equatorial Guinea, said the company expects total output to grow 7%.
More than $19 billion in oil and gas writedowns have been reported in a single week as producers acknowledge what investors already knew. Royal Dutch Shell Plc leads the pack in recognizing that drilling prospects are worth a lot less than they used to. The producer announced its worst loss in 16 years on Thursday, including $8.2 billion in impairments. Southwestern Energy Co., Whiting Petroleum Corp. and Anadarko Petroleum Corp. have likewise written off acreage value. For investors, those charges aren’t much of a surprise after oil tumbled 44 percent in the past year, dragging stock prices along with it. Shell has declined 15 percent in the past 12 months, Whiting is down 73 percent and Anadarko fell 26 percent.
ConocoPhillips said it will cut its capital budget for the year to $10.2billion in response to continued low oil prices. The company said it would divest assets and lower its cost structure in response to slide in oil prices from $100 to $50 a barrel. Conoco posted a loss of $1.1billion compared with a profit of $2.7billion a year previously.
Polarcus has seen its revenues rise by 44% in its third quarter compared to its previous results this year. The company said its cash from operations had hit $55million, up from 74% in the second quarter of the year. The seismic player, which had previously been hit with a loss earlier in the year, said it had managed to deliver “significant” cost reductions as well as improve profitability. Polarcus said it was heading into the final part of the year with a 75% booked capacity for the next six months.
AWE Limited said its sale revenues fell by 27% in the third quarter of the year compared to second quarter results. The company also said it had put in place an oil price hedging program to underpin cash flow next year. There was a net debt of $156million, comprising cash of $54million and drawn debt of $210million.
Shares in the oil giant edged up 1.7% in early trading on the back of the better-than-expected results. Hargreaves Lansdown equities head Richard Hunter said, although the firm clearly faced many challenges, the long-term outlook remained positive. “There are some signs that BP is successfully negotiating spinning the many plates required in the current environment,” he said.
Oil major BP’s profits in the third quarter of the year have dropped by 40%. The company, which announced its third quarter results today, said its underlying profits came in at $1.8billion compared with more than $3billion a year ago. The lower results, BP said, were primarily due to the effect of lower oil and gas prices. In its downstream business the operator continued to see a strong performance which saw an increase in profit from $1.5billion last year to $2.3billion.
Stork said the UK market “continues to be tough” amid the challenging oil price decline as it revealed its third quarter results. The company said its order book was down from €1.2billion to just over €1billion for the quarter, impacted by deferrals of contract extensions as well as negative exchange rates. Meanwhile revenue has increased by 5.2% while organic growth has also increased by 4.6%.
Weatherford International Plc shareholders are asking the company for one thing this quarter: Please, just be a little more boring. Over the last decade, the oilfield services provider has missed analyst estimates 20 times, settled a corruption probe and spent more than $150 million in professional fees to fix errors in its accounting. And last month, it abandoned plans to raise $1 billion for an acquisition just hours after announcing them. Now the company is seeking to build investor trust amid the worst oil market slump in decades. Chief Executive Officer Bernard Duroc-Danner needs to manage day-to-day activities in a way that will, for the first time in five years, generate more cash than the company spends, said David Anderson, an analyst at Barclays in New York. It’s a target Weatherford set for itself last year but failed to reach.
President Energy said revenues have decreased since last year to $4.5million as it feels the impact of lower global oil prices. The company, which has producing assets in Argentina and Louisiana, said production has risen by 29% in the US state since last year. Total assets for the company were $202.7million, a rise from $162.9million in the first half of last year.
Noreco (Norwegian Energy Company) said the sale of a number of licences has allowed the firm to repay some of its debt and interest. The company has been making moves to strengthen its finances with a restructuring proposal approved earlier this year. In its second quarter results for the year the firm, which has gone through a number of challenges in the past year, said it has made a partial repayment of NOK250million of debt and interest in the NOR10 bond this month.
A 50% drop in oil price has seen Enquest take a 20% financial hit.
Energy producer ConocoPhillips has reported a loss to its income during the second quarter of 2015. The company said its income was $179million in comparison with a profit of $2.08billion a year earlier. ConocoPhillips was the first major oil producer to announce spending cuts after prices began to fall last year.
Tullow Oil Plc, an Africa-focused energy producer, reported a narrower first-half loss after exploration writedowns shrank.
BP’s profits took a significant hit in the wake of its $18.7billion Deepwater Horizon settlement.
North Sea firm Ithaca Energy saw its shares jump as much as 14% yesterday after it said it had increased its oil hedging to mitigate against lower prices. But the company also revealed the sharp drop in crude prices late last year wiped £117million off its 2014 balance sheet, leaving it with pre-tax losses of £225million. Ithaca, whose stock plummeted more than 27% in February after it announced start-up from its Greater Stella Area (GSA) project would be severely delayed, said yesterday it had 4,000 barrels of oil per day hedged at an average price of $69 from July 2016 to June 2017. The London and Toronto-listed company also reported “solid” underlying cashflow generation and a 22% increase in proved and probable reserves to 70million barrels of oil equivalent (boe).
Talisman Energy has seen its cash flow drop by 11% from the last quarter. The firm dipped oil prices and lower liquid volumes fro the fall. Talisman said its North Sea production averaged at 12,000BOED, which was down 37% from the previous quarter and 43% year-over-year. The dip in production was a result of planned turnarounds at Claymore, Piper, Buchan and the Bleoholm FPSO.