ConocoPhillips (COP) saw its loss narrow to $1,040 million, or $0.84 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1,071 million, or $0.87 a share. On the other hand, adjusted net loss for the quarter widened to $826 million, or $0.66 a share from a loss of $466 million or $0.38 a share, a year ago. Revenue during the quarter dropped 13.20 percent to $6,516 million from $7,507 million in the previous year period. Gross margin for the quarter expanded 129 basis points over the previous year period to 33.32 percent. Operating margin for the quarter stood at negative 20.04 percent as compared to a negative 20.95 percent for the previous year period.
Operating loss for the quarter was $1,306 million, compared with an operating loss of $1,573 million in the previous year period.
"Our underlying business performance is delivering strong momentum as we head into 2017," said Ryan Lance, chairman and chief executive officer. "In the third quarter we achieved cash flow neutrality, with operating cash flow covering capital expenditures and the dividend. For the second quarter in a row, we are lowering 2016 guidance on our capital expenditures and adjusted operating costs, while increasing our 2016 production guidance. We’re hitting our key operational targets across the business and achieving important milestones, including the startup of Train 2 at APLNG and continued ramp up at Surmont. We continued to progress our announced asset sales and recently retired $1.25 billion of debt. Our focus throughout the year has been to lower our breakeven price, improve the balance sheet, position the company to generate free cash flow and deliver differential performance as prices recover. We’ve made great strides and look forward to sharing our future plans with the market at our upcoming Analyst and Investor Meeting."
Operating cash flow drops significantly
ConocoPhillips has generated cash of $2,960 million from operating activities during the nine month period, down 50.47 percent or $3,016 million, when compared with the last year period. The company has spent $3,912 million cash to meet investing activities during the nine month period as against cash outgo of $8,029 million in the last year period. It has incurred net capital expenditure of $3,451 million on net basis during the nine month period, down 54.53 percent or $4,139 million from year ago period.
Cash flow from financing activities was $2,670 million for the nine month period as against cash outgo of $454 million in the last year period.
Cash and cash equivalents stood at $4,090 million as on Sep. 30, 2016, up 69.50 percent or $1,677 million from $2,413 million on Sep. 30, 2015.
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