Anadarko Petroleum’s loss less than expected

Anadarko Petroleum cut its 2016 capital budget by 50 per cent

Anadarko

Anadarko Petroleum posted a net loss of $1.03 billion, compared with a net loss of $3.27 billion, in the year-ago period.  Anadarko Petroleum photo.

By Ernest Scheyder

May 2 (Reuters) – Anadarko Petroleum Corp posted a smaller-than-expected first-quarter loss on Tuesday as it successfully slashed costs to offset the plunge in crude oil prices.

Like many of its peers, the Woodlands, Texas company has reacted swiftly to curb spending and weather the low-price storm. The global oil exploration and production company cut its capital budget this year by 50 per cent, slashed its dividend, laid off workers and sold more than $1 billion in assets.

In all, the company cut costs 61 per cent from the same quarter a year earlier.

Those actions “support our ability to enhance and preserve value in a volatile market environment,” Chief Executive Al Walker said in a press release.

The company posted a net loss of $1.03 billion, or $2.03 per share, compared with a net loss of $3.27 billion, or $6.45 per share, in the year-ago period.

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Excluding losses on hedges and other one-time items, the company lost $1.12 per share.

By that measure, analysts expected a loss of $1.16 per share, according to Thomson Reuters I/B/E/S.

The company posted a $2.78 billion impairment charge in the year-ago period.

Total quarterly revenue fell 28 per cent to $1.67 billion.

Shares fell 2.7 percent to $50.50 in after-hours trading on Monday.

(Reporting by Ernest Scheyder; Editing by Tom Brown and Alan Crosby)

Posted in: Energy Financial

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