Sunday, October 2, 2022

Hess’ net profits soar to US$667M in 2022 second quarter

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Global energy major, Hess Corporation 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’s net income was US$417M. It therefore means that for the first six months, Hess’ net earnings would have totaled US$1 billion.

In its quarterly earnings report released on Wednesday morning, Hess said the improvement in after-tax earnings compared with the prior-year quarter’s adjusted results was primarily due to higher realised selling prices in the second quarter of 2022.

Speaking to operational highlights, for Guyana, where it has a 30% working interest in the Stabroek Block, Hess said net production totaled 67,000 barrels of oil per day (bopd) in the second quarter of 2022 compared with 26,000 bopd in the prior-year quarter.

The company said production from the Liza Destiny floating production, storage and offloading (FPSO) vessel reached its new production capacity of more than 140,000 gross bopd in the second quarter of 2022 following the completion of production optimisation work initiated in March.

OilNOW understands that net production from the Liza Unity FPSO, which commenced in February, was 35,000 bopd in the second quarter of 2022, and reached its production capacity of 220,000 gross bopd in July.

Hess noted that two new discoveries were announced at Seabob and Kiru-Kiru, which add to the previously announced gross discovered recoverable resource estimate for the Stabroek Block of approximately 11 billion boe.

The Seabob-1 well encountered 131 feet of high-quality, oil-bearing sandstone reservoirs. The well was drilled in 4,660 feet of water and is located approximately 12 miles southeast of the Yellowtail Field.

Drilling operations at Kiru-Kiru are ongoing. The Kiru-Kiru-1 well has thus far encountered 98 feet of high-quality, hydrocarbon-bearing sandstone reservoirs. The well is being drilled in 5,760 feet of water and is located approximately 3 miles southeast of the Cataback-1 discovery.

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