American energy company, Hess Corporation disclosed on Wednesday that it made a net income of US$515 million, or US$1.67 per common share, in the third quarter of 2022, compared with net income of US$115 million, or US$0.37 per common share, in the third quarter of 2021.
It had previously reported a net income of US$667 million, or US$2.15 per common share, in the second quarter of 2022, compared with a net loss of US$73 million, or $0.24 per common share, in the second quarter of 2021.
In the first quarter, the company made US$417 million. It therefore means that in nine months, Hess’ net earnings for this year totaled US$1.6 billion.
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With respect to its third-quarter earnings, Hess told the market this morning that on an adjusted basis, the corporation had net income of US$583 million or US$1.89 per common share, compared with US$86 million, or US$0.28 per common share, in the third quarter of 2021.
It explained that the improvement in adjusted after-tax earnings compared with the prior-year period was primarily due to higher realised selling prices and sales volumes in the third quarter of 2022.
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“We continue to successfully execute our strategy and deliver strong operational and ESG performance,” Chief Executive Officer John Hess said in a statement, adding, “We offer a unique value proposition – to grow both our intrinsic value and our cash returns by increasing our resource base, delivering a lower cost of supply and generating industry-leading cash flow growth.”
As Hess’ portfolio becomes increasingly free cash flow positive, the CEO said the firm will continue to prioritise the return of capital to shareholders through further dividend increases and share repurchases.
Hess is a 30% stakeholder in the prolific Stabroek Block and a 20% stakeholder in the adjoining Kaieteur Block. Both acreages are operated by ExxonMobil.
