Press Esc to close


World Oil News Center

Hess second-quarter net surges following Russian unit sale

NEW YORK -- Hess Corp.' s second-quarter profit soared as the oil-and-gas company recorded a large gain from the sale of its Russian unit.

Hess has been shedding assets to fund drilling-and-exploration efforts as it struggles with lackluster profits and shareholder discontent. The New York company agreed in April to sell its stake in a Russian unit to Lukoil for $1.8 billion. Also, on Tuesday, Hess agreed to sell its energy-marketing business for about $1.03 billion to Direct Energy, Centrica’S North American unit, as part of its plan to exit the downstream business.

Hess reported a profit of $1.43 billion, or $4.16 a share, up from $549 million, or $1.61 a share, a year earlier. Gains on asset sales were $1.11 billion in the latest period. Excluding a gain on the Russian sale and other items, earnings were $1.51 a share in the latest quarter.

Revenue rose 24% to $4.11 billion.

Analysts polled by Thomson Reuters had most recently forecast earnings of $1.41 a share on revenue of $4.62 billion.

Earnings at Hess' s exploration-and-production business jumped to $1.53 billion from $644 million, due primarily to gains on the Russian asset sale. The company' s average selling price for oil, including hedging effects, increased 13% to $97.89. Average daily production was down 21% to 341,000 barrels of oil equivalent, due primarily to asset sales in Russia, the U.K. North Sea and Azerbaijan.

In May, Hess settled a months-long proxy fight, agreeing to name three directors backed by dissident hedge fund Elliott Management Corp. Elliott, which owns about 4.5% of Hess' s shares, agreed to withdraw its slate of five nominees and support the Hess-backed directors at the company' s annual meeting. Elliott had been calling for Hess to split into two companies in a bid to boost the stock' s performance.

Shares closed Tuesday at $73.19 and were inactive premarket. The stock is up 38% so far this year.

Dow Jones Newswires



Bookmark and Share



Engineering Data Tables

World Oil's specialized upstream Engineering Data Tables featuring the Drill Bit Classifier, Tubing Tables and more. Get Total Access today.


2013 Fracturing Technology

2013 Fracturing Technology


By Digital Publisher

Drill Bit Classifier World Oil published its renowned Drill Bit Classifier in September 2013. The Drill Bit Classifier is a comprehensive listing of major manufacturers' d...