ConocoPhillips Further Reduces Spending Plans, Swings to Big Loss

By Tess Stynes 

ConocoPhillips again reduced its 2016 capital spending plans as low commodities prices continue to take a toll on the energy sector.

The Houston company swung to a first-quarter loss on asset write-downs and pension-settlement expenses.

ConocoPhillips cut its 2016 capital spending budget to $5.7 billion, from February's lowered estimate of $6.4 billion. In its earnings release Thursday, ConocoPhillips said the lower guidance was mostly driven by reduced deep water exploration activity, deferrals and lower costs across the portfolio.

ConocoPhillips has continued its efforts to reduce spending to improve its cash flow and its balance sheet owing to a weak outlook for oil prices and expectations that credit would tighten across the industry. The company has slashed its quarterly dividend and last year completed roughly $2 billion in noncore asset sales, part of its efforts to improve its performance.

Over all, ConocoPhillips reported a loss of $1.47 billion, or $1.18 a share, compared with a year-earlier profit of $272 million, or 22 cents a share. Excluding one-time items, the loss was 95 cents, compared with a year-earlier loss of 18 cents. Total revenue and other income slumped 37% to $5.02 billion.

Analysts polled by Thomson Reuters expected per-share loss of $1.05 and revenue of $7.22 billion.

ConocoPhillips said average selling prices fell 38% from a year earlier and production fell 2%.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

April 28, 2016 08:01 ET (12:01 GMT)

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