By Brittney Laryea
Hess Corp. posted another loss for its second quarter as the energy supplier continues to deal with the slowdown in the global energy market.
"During the quarter, we continued to pursue further cost reductions," Chief Executive John Hess said, noting that its full-year exploration and product costs will be about 48% below 2015 levels.
A long slump in energy prices, particularly in crude oil, has hurt the energy provider's results. So much so that in February, the company said it would sell about $1.5 billion worth of shares as it sought to strengthen its balance sheet and fund longer-term capital needs.
Average crude selling price fell 25% in the quarter to $41.95 a barrel from $55.83 a year earlier.
Hess's exploration and production business posted a loss of $328 million in the quarter, compared with a loss of $502 million a year ago. The segment's capital and exploratory expenditures fell by more than half to $485 million. Hess expects capital and exploratory expenditures to total $2.1 billion for the year.
Oil and gas production dropped 19% to 313,000 barrels of oil equivalent a day, compared with 386,000 a year before. For the year, Hess said it projected net production of 315,000 to 325,000 barrels of oil equivalent a day, excluding Libya.
For the quarter ended June 30, the company posted a loss of $392 million, or $1.29 a share, narrower than its year-earlier loss of $567 million, or $1.99 a share. Excluding certain costs, the company posted a loss of $1.10 in per-share earnings, wider than its year-earlier loss of 52 cents per share.
Revenue fell sharply, down 34% to $1.27 billion.
Analysts polled by Thomson Reuters had most recently expected an adjusted loss of $1.24 a share on $1.25 billion in revenue.
Hess's stock, down 17% over the past three months, fell 5.1% to $50.92 in afternoon trading.
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