Hess suffers $624M loss in 3rd quarter 2017

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John Hess, CEO - Hess Corporation

Hess Corporation (NYSE: HES) today reported a net loss of $624 million, or $2.02 per common share, in the third quarter of 2017 compared with a net loss of $339 million, or $1.12 per common share, in the third quarter of 2016.

On an adjusted basis, the Corporation reported a net loss of $324 million, or $1.07 per common share, in the third quarter of 2017 compared with an adjusted net loss of $340 million, or $1.12 per common share, in the prior year quarter. The improved adjusted results reflect higher realized crude oil selling prices and lower operating costs, depreciation, depletion and amortization, and exploration expenses.

Third quarter 2017 results were adversely impacted by lower tax benefits compared to the prior-year quarter following a required change in deferred tax accounting. On an adjusted pre-tax basis, the Corporation reported a loss of $307 million in the third quarter of 2017, down from $553 million in the year-ago quarter.

“We are successfully executing our strategic plan to focus our portfolio by investing in our highest return assets and divesting mature higher cost assets,” Chief Executive Officer John Hess said.

The company has a 30% stake in the Stabroek Block offshore Guyana.

“These actions in turn will lower our cash unit costs, bolster our balance sheet and prefund our world class investment opportunity in Guyana, which will position us to deliver a decade plus of returns-driven growth and increasing cash generation for our shareholders,” Hess added.

The company has agreed to sell its interest in Norway for $2 billion and Equatorial Guinea for $650 million and has started a process to sell its interests in Denmark in 2018.