Hess loss widens to $4.9 billion

  • Business & Finance

U.S.-based oil company Hess Corporation has posted a deeper net loss for the fourth quarter of 2016 due to non-cash accounting charge, compared to a loss in the year-before period. 

The company on Wednesday reported a net loss of $4.89 billion in the fourth quarter of 2016, including a non-cash accounting charge of $3.749 billion on deferred tax assets, compared with a net loss of $1.8 billion in the fourth quarter of 2015.

According to Hess, out of the $3.8 billion charge, $2.9 billion went to exploration & production and $829 million to corporate, interest and other.

Fourth quarter results also include an after-tax charge of $693 million to impair the Equus natural gas project development, offshore Australia, which the company recently postponed, and other after-tax charges totaling $145 million.

Excluding items affecting comparability between periods, fourth quarter 2016 net loss was $305 million, compared to a net loss of $396 million in the fourth quarter of 2015. The adjusted fourth quarter 2016 results reflect higher realized crude oil selling prices and improved total production unit costs.

The company’s revenues for 4Q 2016 were $1.386 billion, compared to $1.387 billion.

Hess’ oil and gas production was 311,000 barrels of oil equivalent per day (boepd) in 4Q 2016, compared to 368,000 boepd in the same period of 2015.

During the quarter, exploration and production capital and exploratory expenditures were $414 million, down 56 percent from $943 million in the prior-year quarter. The company’s E&P capital and exploratory expenditures for 2017  are expected to be $2.25 billion, up from $1.9 billion in 2016, as recently reported by Offshore Energy Today.

Regarding Hess’ plans for 2017, CEO John Hess, said: “We are increasing activity in the Bakken, our two offshore developments at North Malay Basin in the Gulf of Thailand and Stampede in the Gulf of Mexico are on track to come online in 2017 and 2018, and the Liza Field in Guyana is one of the industry’s largest oil discoveries in the last 10 years.”

Offshore Energy Today Staff

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