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CORRECTED-UPDATE 1-Hess profit and production tumble after unrest in Libya
October 30, 2013 / 12:16 PM / in 4 years

CORRECTED-UPDATE 1-Hess profit and production tumble after unrest in Libya

(Corrects production guidance range in 4th paragraph to 340,000-355,000 boe/d from 240,000-255,000 boe/d.)

Oct 30 (Reuters) - Hess Corp, an oil and natural gas producer, reported a lower-than-expected third-quarter profit on Wednesday as unrest in Libya and asset sales dented production.

Oil and gas output fell to 310,000 barrels of oil equivalent per day from 402,000 boe/d a year earlier.

Much of the drop came after Hess sold assets in Russia, the UK and Azerbaijan. In the year-earlier quarter, those assets boosted production.

The continuing unrest in Libya also hurt second-quarter production, and Hess said it now expects full-year output to be at the low end of its guidance range of 340,000 to 355,000 boe/d.

Excluding one-time items, Hess earned $1.18 per share in the third quarter. By that measure, analysts expected $1.44 per share, according to Thomson Reuters I/B/E/S.

The company posted net income of $420 million, or $1.23 per share, compared with $557 million, or $1.64 per share, a year earlier.

Revenue dropped 23 percent to $2.69 billion. Analysts expected $2.67 billion.

Shares of New York-based Hess fell 2.3 percent to $81.60 in premarket trading. As of Tuesday’s close, the stock had gained 58 percent this year.

Activist investor Elliot Management took a large stake in Hess earlier this year and put three new directors on the company’s board. (Reporting by Ernest Scheyder; Editing by Lisa Von Ahn and John Wallace)

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