On Tuesday, ConocoPhillips (NYSE: COP) announced its financial results for the first quarter of 2017, with an unexpected quarterly loss.
According to the company, net profit in the first quarter was $800 million, or $0.62 per share, increased from a net loss of $1.5 billion, or $1.18 per share the same period last year. Excluding certain items, the company reported a loss of $0.02 per share, missing analysts’ estimates of a profit of $0.01 per share. Operating expenses were $1.3 billion, which was higher than estimates of $1.24 billion. The higher operating expenses was part of the reason for the unexpected loss reported by the company.
Excluding Libya, the company’s production was up 2% to 1.58 million barrels of oil equivalent per day (boepd), which was higher than estimates of 1.57 million boepd.
“Operationally, the business is running well. We grew our production, while maintaining our cost and capital discipline. Financially, our cash from operating activities more than covered capital spending and the dividend. Strategically, we increased our quarterly dividend, paid down debt and continued to execute our share buyback program,” Ryan Lance, the chairman and chief executive officer of ConocoPhillips, said in the statement.
“We also announced agreements to divest our interests in several Canadian assets and the San Juan Basin. When these transactions close, proceeds will be used to accelerate our value proposition by significantly reducing debt, and increasing share repurchases over the next three years,” he added.