Woodlands-based Anadarko posted better-than-expected results for the second quarter of this year as the company reduced costs amid low oil and gas prices.
Anadarko reported a net loss of $692 million, or $1.36 per share, in the second quarter, compared with a profit of $61 million, or 12 cents per share, a year earlier.
The company’s revenue dropped 27 percent to $1.92 billion. This was above analysts’ estimate of about $1.89 billion, according to Reuters.
“Our portfolio continues to perform exceptionally well, and we’ve continued to significantly reduce our cost structure throughout the year,” said Al Walker, Anadarko CEO.
To remind, Anadarko said earlier this year it will slash its 2016 spending by almost 50 percent to cope with the prolonged oil and gas downturn.
Second-quarter capital investments of $608 million, excluding WES, were below the low end of guidance of $700 million and more than 50% lower than capital investments in the 2nd quarter of 2015, Anadarko said in its statement on Tuesday.
Anadarko has closed $2.5 billion in asset sales so far this year.
“We’ve been very successful monetizing assets through the first six months of this year and have increased the high end of our target range to $3.5 billion in total proceeds expected by year end,” Walker said.
Anadarko said in the statement it has advanced its multi-billion Mozambique LNG project.
“Anadarko achieved a significant milestone by submitting the Resettlement Plan for government review.”
According to Mozambique LNG’s website, the Resettlement Plan is a “detailed document that describes the approach, principles and procedures that will be followed to manage all unavoidable physical and economic displacement due to the development of the Mozambique Gas Development Project.”
The Resettlement Plan also provides detail on the process that the project followed to determine the replacement site, as well as detail on activities that will “support resettlement affected people to re-establish their livelihoods once they have been resettled.”
Anadarko and partners have discovered more than 75 Tcf of recoverable natural gas resources in Mozambique’s Offshore Area 1, which will be used to feed an onshore LNG terminal on the Afungi peninsula in Cabo Delgado province.
The reserves are sufficient to support two initial LNG trains, each with capacity of 6 million tonnes per annum, as well as to accommodate expansions, including additional trains capable of producing about 50 million tonnes of LNG per year, according to Anadarko. The Mozambique LNG project has more than 8 MMTPA of non-binding LNG offtake agreements already in place.
Anadarko confirmed earlier this year it is “strongly committed” to the Mozambique LNG project despite the debt crisis in the African country and the oil and gas price downturn.
LNG World News Staff