ConocoPhillips Loss Widens

ConocoPhillips said its second-quarter loss widened as revenue slumped amid the prolonged commodities downturn.

The Houston company also reduced its 2016 capital spending plan by $200 million to a total of $5.5 billion.

ConocoPhillips, among a number of energy companies that have been selling noncore businesses, said it completed $200 million of divestitures during the quarter, bringing the total for the first half of the year to $400 million.

"The price environment remains challenging, but our business is running well, and we continue to beat our production, capital expenditures and operating cost targets," Chief Executive Ryan Lance said in prepared remarks.

In the latest quarter, Conoco said its average selling prices fell 29% from a year earlier, reflecting declines across all commodities.

Conoco reduced its debt by $800 million in the quarter, and the company remains on track $1 billion of asset sale proceeds.

Over all, Conoco reported a loss of $1.07 billion, or 86 cents a share, compared with a year-earlier loss of $179 million, or 15 cents a share, a year earlier. Excluding asset write-downs, pension-related expenses, an asset sale gain and other items, the adjusted per-share loss was 79 cents, compared with year-earlier adjusted earnings of 7 cents.

Total revenue and other income decreased 36% to $5.58 billion.

Analysts expected per-share loss of 61 cents and revenue of $6.62 billion, according to FactSet.

ConocoPhillips has continued to reduce its spending to improve its cash flow and its balance sheet. 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.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

July 28, 2016 09:05 ET (13:05 GMT)

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