Hess down despite production hike

by on July 25, 2012 12:00 pm BST

The company managed to chop its expenses but made provisions
for a vastly increased tax bill.

Net profit for the period was $549 million as against $607
million for the three months to the end of June last year.

Revenues sank from $9.81 billion to $9.31 billion as the
average oil price slipped from $97.20 per barrel to $86.86 per barrel. Average
gas prices remained relatively unchanged, however.

The profit drop was realised despite a sizeable hike in
production from 372,000 barrels of oil equivalent per day to 429,000 boepd. This
was largely due to higher output in the Bakken oil shale and the restart of
operations in Libya after the fall of late leader Muammar Gaddafi during the
Arab Spring uprising.

Hess also inserted a $36 million after-tax charge into its
accounts associated with the anticipated sale of certain Eagle Ford assets as
part of an asset swap deal with a joint venture partner.