Oil Producer Hess Reports Smaller Loss, Cuts Budget

Reuters

uly 27 (Reuters) - U.S. oil producer Hess Corp reported a smaller-than-expected quarterly loss, helped by its efforts to keep costs low, and the company further cut its exploration and production budget for the year.

Oil producers have been drastically cutting their capital budgets for the year in response to the slump in oil prices that began in June 2014. Hess cut its E&P budget by $300 million to $2.1 billion.

Hess also cut its production forecast for 2016, mainly because of unplanned downtime at two Gulf of Mexico fields.

The company now expects net production of 315,000-325,000 barrels of oil equivalent per day (boepd), down from its previous forecast of 330,000-350,000 boepd.

The oil producers' net loss narrowed to $392 million, or $1.29 per share, in the second quarter ended June 30 from $567 million, or $1.99 per share, a year earlier.

The company reported an adjusted loss of $1.10 per share, while quarterly revenue fell 34.4 percent to 1.27 billion.

Analysts were expecting a loss of $1.24 per share and revenue of $1.21 billion for the quarter, according to Thomson Reuters I/B/E/S.

(Reporting by Vishaka George in Bengaluru; Editing by Anil D'Silva)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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