Hess Corporation (HES) saw its loss widen to $4,892 million in the quarter ended compared with $1,821 million a year ago. On the other hand, adjusted net loss for the quarter narrowed to $305 million, or $1.01 a share from a loss of $396 million or $1.40 a share, a year ago. Revenue during the quarter dropped 5.83 percent to $1,388 million from $1,474 million in the previous year period. Gross margin for the quarter contracted 639 basis points over the previous year period to 72.98 percent.
Operating loss for the quarter was $1,555 million, compared with an operating loss of $2,110 million in the previous year period.
“We see 2017 as the start of an exciting new chapter of value-driven growth for our company and our shareholders,” Chief Executive Officer John Hess said. “We are increasing activity in the Bakken, our two offshore developments at North Malay Basin in the Gulf of Thailand and Stampede in the Gulf of Mexico are on track to come online in 2017 and 2018, and the Liza Field in Guyana is one of the industry’s largest oil discoveries in the last 10 years.”
Operating cash flow drops significantly
Hess Corporation has generated cash of $795 million from operating activities during the year, down 59.87 percent or $1,186 million, when compared with the last year. The company has spent $2,090 million cash to meet investing activities during the year as against cash outgo of $4,206 million in the last year. It has incurred net capital expenditure of $2,111 million on net basis during the year, down 50.57 percent or $2,160 million from year ago.
Cash flow from financing activities was $1,311 million for the year, down 47.50 percent or $1,186 million, when compared with the last year.
Cash and cash equivalents stood at $2,732 million as on Dec. 31, 2016, up 0.59 percent or $16 million from $2,716 million on Dec. 31, 2015.
Working capital increases
Hess Corporation has recorded an increase in the working capital over the last year. It stood at $2,025 million as at Dec. 31, 2016, up 14.02 percent or $249 million from $1,776 million on Dec. 31, 2015. Current ratio was at 1.90 as on Dec. 31, 2016, up from 1.68 on Dec. 31, 2015.
Debt moves up marginally
Hess Corporation has witnessed an increase in total debt over the last one year. It stood at $6,806 million as on Dec. 31, 2016, up 3.25 percent or $214 million from $6,592 million on Dec. 31, 2015. Total debt was 23.78 percent of total assets as on Dec. 31, 2016, compared with 19.28 percent on Dec. 31, 2015. Debt to equity ratio was at 0.42 as on Dec. 31, 2016, up from 0.32 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
