Hess Q1 Profit Falls, Backs FY Production View - Update

(RTTNews) - Energy company Hess Corp. (HES) Wednesday reported a sharp fall in first-quarter profit, reflecting lower revenues and a decline in oil and gas production. Asset sales and extended shutdowns caused by civil unrest in Libya reduced production.

John Hess, chief executive officer of the company said, "Our results this quarter demonstrate continued execution of our plan to drive cash-generative growth and sustainable returns for our shareholders...Overall, we remain very enthusiastic about the prospects for our company in 2014 and beyond."

For the first quarter, net income attributable to the company plunged to $386 million from $1.28 billion in the first quarter of 2013. Earnings per share were $1.20, down from $3.72 per share last year.

Adjusted earnings were $446 million or $1.38 per share, while it totaled $669 million or $1.95 per share in the prior year quarter, amid divesting E&P assets and downstream businesses.

On average, 24 analysts polled by Thomson Reuters expected earnings of $1.04 per share. Analysts estimates typically exclude special items.

Total revenues and non-operating income declined to $5.51 billion from $6.76 billion in the prior year.

Oil and gas production was 318,000 barrels of oil equivalent per day or boepd, lower than 389,000 boepd in the year-ago quarter. The company noted that asset sales lowered production by 77,000 boepd, while extended shutdowns caused by civil unrest in Libya reduced production by around 23,000 boepd.

Pro forma production, excluding Libya, was 297,000 boepd, up 11 percent from 268,000 boepd in 2013.

Average worldwide natural gas selling price increased to $7.03 per mcf from $6.62 per mcf in the same quarter a year ago.

For 2014, the company still expects production, excluding Libya and asset sales, to average between 305,000 boepd and 315,000 boepd. HES is currently trading at $89.21, up 1.35 percent.