Hess beats third-quarter profit on crude price strength

 (Reuters) – U.S. oil and gas producer Hess Corp (HES.N) reported a quarterly profit which topped Wall Street’s estimates on Wednesday, on the back of higher crude prices amid tighter energy supplies following Russia’s invasion of Ukraine.

Oil prices have pulled back but were still trading at eight-year highs amid Western sanctions against major exporter Russia and OPEC’s decision to tighten an already squeezed global supply with a deal to cut production targets by 2 million barrels per day (bpd).

Hess said its average realized crude oil selling price, excluding hedges, rose 38.4% to $93.95 per barrel, from last year.

Global benchmark Brent crude was trading around $94 per barrel on Wednesday, and has risen about 21% so far this year.

Excluding Libya, the company’s net production climbed 32.4% 351,000 barrels of oil equivalent per day (boepd) in the quarter, due to higher output in Guyana and North Dakota’s Bakken shale field.

Hess, which is part of a consortium that includes operator Exxon Mobil Corp (XOM.N), also announced two new discoveries in the Stabroek block offshore Guyana, adding more barrels to one of the most closely watched new oil discoveries.

For the full year 2022, Hess said Guyana net production is forecast to be about 77,000 bopd.

Net income attributable to the company rose to $515 million, or $1.67 per share, in the three months ended Sept. 30, compared with $115 million, or 37 cents per share, last year.

On an adjusted basis, Hess posted a profit of $1.89 per share, beating average analysts’ estimate of $1.87 per share, according to Refinitiv.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Powered by WordPress.com.

Up ↑

%d bloggers like this: