ConocoPhillips Posts Smaller-than-expected Loss


Oil producer ConocoPhillips, which is buying Concho Resources Inc for $8.3 billion, posted a smaller-than-expected quarterly loss on Thursday as it benefited from a recovery in crude oil prices from pandemic-driven lows.

Oil prices began recovering in the third quarter after a number of countries started easing their months-long cornonavirus-led lockdowns, which has slammed fuel demand and forced some oil companies to merge for survival.

ConocoPhillips reported a loss of $450 million, or 42 cents per share, compared with third-quarter 2019 earnings of $3.1 billion, or $2.74 per share.

It narrowly beat analyst expectations with an adjusted loss of 31 cents per share, 1 cent narrower than analysts' average forecast, according to Refinitiv IBES data.

The beat was driven "mostly by lower cash operating costs", said RBC Capital Markets analyst Scott Hanold.

Third-quarter production was 1.1 million barrels of oil and gas per day, compared with about 1.3 million barrels in the same period last year. The company expects to end the year making around 1.1 million barrels daily and plans to hold production flat next year, Chief Executive Ryan Lance told analysts on Thursday.

"We remain cautious on the pace and timing of recovery," Lance said.

As oil prices collapsed in the spring during global coronavirus lockdowns, ConocoPhillips said it would curtail more output than any North American producer, reducing its output by 460,000 barrels per day by June.

But the company reversed curtailments during the third quarter and Lance said it was now "back to more normal business" and would focus on the Concho acquisition.

Its shares traded down a fraction at $28.58 on Thursday.

Concho Resources earlier this week reported a small decline in its third-quarter production. Its merger with ConocoPhillips is expected to be completed early next year.

The company's acquisition of Concho has helped prompt a spate of consolidation in the shale industry, with at least two more multibillion-dollar takeovers being announced in a span of one week.

(Reporting by Jennifer Hiller and Shariq Khan; Editing by Arun Koyyur, Anil D'Silva, Nick Zieminski/Emelia Sithole-Matarise and Jonathan Oatis)

No comments

More Popular Posts

About Crude Oil Brokers Ltd

Crude Oil Brokers Ltd is a dedicated global broker and facilitator of crude oil buying and selling. We work directly with crude oil buyers and crude oil sellers worldwide. We are a United Kingdom and Nigerian based firm, privately owned and devoted to the brokering of crude oil and other petroleum products buying and selling.

We have buyers and sellers of;

1. Nigerian Bonny Light Crude Oil, BLCO

2. D2 Diesel Fuel, JP54 Jet Fuel, Mazut etc.

3. Saudi Light Crude Oil, SLCO

4. Iraqi Light Crude Oil

If you are a buyer or seller of crude oil or other petroleum products or have mandate to buy or sell any of the above oil products, do contact us because we could be of help.

To contact Crude Oil Brokers, click here ». To learn more about Crude Oil Brokers Ltd, click here

Crude Oil Brokers