Houston-based Anadarko, the developer of the Mozambique LNG project, reported a net loss of $1.25 billion for the fourth-quarter of 2015, compared with a loss of $395 million in the year-ago quarter.
Anadarko expects to spend $2.8 billion in 2016, which would be nearly 50 percent lower than the company’s actual 2015 capital investments and almost 70 percent lower than 2014, Anadarko’s CEO Al Walker said in a statement issued on Monday.
“As discussed last year at this time, we did not expect oil prices to recover in 2015 and believed it could take well into 2016 before markets would stabilize on a sustained basis, costs would become more aligned with the new operating environment and investments in short-cycle assets would be more attractive. Therefore, value enhancement drove our capital-allocation philosophy,” Al Walker said.
“We believe the accomplishments achieved in 2015, coupled with the steps we are taking in 2016 to materially reduce our capital spending, leverage our competitive advantages and protect our balance sheet, will serve our shareholders well. These actions should enable us to successfully manage through the current market volatility and position Anadarko for future success,” the CEO added.
LNG World News Staff