Sale of North Sea unit boosts ConocoPhillips

ConocoPhillips said its third quarter profit jumped more than 60 percent from the prior year, boosted by proceeds of the recent sale of its North Sea business in the United Kingdom.

The Houston company said the sale accounted for about $2 billion of its $3.1 billion profit in the third quarter, up from $1.9 billion in 2018. Adjusting for the sale and other special items, ConocoPhillips earned $914 million.

Revenue slipped less than 1 percent to $10.1 billion, but it, too, was boosted by the North Sea sale. ConocoPhillips’ revenues from oil and gas sales and other operating revenues fell 18 percent from last year as crude prices plunged.

The firm said its production from the top U.S. shale plays — the Permian Basin, Eagle Ford Shale and North Dakota’s Bakken Shale — jumped 21 percent from last year. Those three basins rep

resent nearly 30 percent of ConocoPhillips’ total production. Other key regions include Alaska, western Canada, Australia, Norway, Qatar and Malaysia. ConocoPhillips also just sold a portion of its Australia business, but that deal hasn’t closed yet.

“This business is all about having a sustainable strategy with consistent execution,” said CEO Ryan Lance. “We believe ConocoPhillips offers both — a shareholder-friendly, returns-oriented value proposition and strong delivery on our commitments.

ConocoPhillips will announce a more thorough, 10-year financial plan in November. Earlier this month, ConocoPhillips announced a nearly 40 percent increase in dividend payouts to investors to help instill confidence in the company on Wall Street amid subdued oil prices and a slowing energy sector.

— Jordan Blum

BP beats estimates

The British oil major BP reported profit that beat analyst estimates as a strong refining performance offset the effects of lower oil and natural gas prices, and bad weather that curbed production.

The positive result will please investors expecting a gloomy third quarter for Big Oil. Crude prices have fallen as the U.S.-China trade war stokes demand concerns, while American output has continued to flood the market.

“BP delivered strong operating cash flow and underlying earnings in a quarter that saw lower oil and gas prices and significant hurricane impacts,” CEO Bob Dudley said in a statement.

BP said adjusted net income was $2.25 billion in the quarter, exceeding estimates of $1.77 billion. That compares with profit of $3.84 billion a year earlier, when BP decided to buy a $10.5 billion package of U.S. shale assets in cash rather than shares because it was so confident oil prices would stay high.

This year, the Londonbased company took the unusual step of issuing a statement before earnings to flag up factors affecting business in the third quarter. BP warned it would pay a tax rate of about 50 percent higher than the expected full-year rate of 40 percent. It also signaled that gearing — a measure of debt to equity — would remain above its target range. — Bloomberg News

Losses for oil field firm

Houston-based oil field service company National Oilwell Varco said it swung to a loss in the third quarter after taking accounting charges that included severance packages for laidoff employees.

The company said it lost $244 million in the third quarter compared to a $1 million profit in the during the same period a year earlier. Revenues slipped to $2.1 billion from $2.2 billion in the third quarter of 2018.

National Oilwell Varco posted a $5.4 billion loss during the second quarter in which it enacted a voluntary early retirement plan designed to save the company $7 million. But executives estimate they can save $160 million annually by restructuring the workforce over the next year.

In a statement, CEO Clay Williams described the quarter as the “strongest cash flow quarter in more than three years.” Efforts to more efficiently manage working capital, he said, are beginning to make an impact.

“As our industry battles deep cyclicality and divergent market conditions,” he said, “the company remains committed to improving its financial returns while also helping our customers improve the efficiency, environmental performance and safety of their operations.”

— Sergio Chapa