Dragon Oil’s revenue fell by 18% in the second quarter of the year compared with the same time in 2014 as the company felt the knock-on effect of a lower oil price . The company said the figures changed from $547million to $449million in 2015. Meanwhile profits also dropped by 52% from $289million to $139million.
Petrobas said its net income has fallen by 89% after the company was hit with a one-time charge for underperforming assets. The Brazilian firm’s quarterly profit fell to $150.4million which was affected by a charge to resolve a tax issue with the country’s federal government as well as fines related to its gas and energy, refining and supply and exploration and production units.
China stocks rose on speculation the government will take measures to support the market, while concern the Federal Reserve will raise interest rates weighed on the rest of Asia. Oil rebounded from a 4 1/2-month low. The MSCI Asia-Pacific Index was little changed at 1:02 p.m. in Tokyo after a week in which it lost 0.8 percent. Standard & Poor’s 500 Index futures rose 0.1 percent. The Shanghai Composite Index climbed 1.9 percent to 3,731. The Australian dollar strengthened 0.4 percent as the central bank indicated the jobless rate has peaked. The yen headed for a weekly loss as the Bank of Japan held its policy unchanged. “Investors believe the 3,500 to 3,600 level is where the government wants to hold firmly above so bargain-hunters are beginning to buy again,” said Wu Kan, a Shanghai-based fund manager at JK Life Insurance Co., who is adding to shares that will benefit from reforms in state-owned enterprises.
US stocks declined for the fourth time in five sessions, as results from Viacom Inc. and Twenty-First Century Fox Inc. disappointed while energy shares fell with oil. Viacom and Fox slumped at least 10 percent after joining a parade of media companies reporting disappointing results. Keurig Green Mountain Inc. plunged 30 percent after cutting its sales and profit forecasts. Marathon Oil Corp. and Apache Corp. sank at least 1.4 percent. Michael Kors Holdings Ltd. added 12 percent after posting better-than-estimated results. The Standard & Poor’s 500 Index lost 0.4 percent to 2,092.34 at 9:59 a.m. in New York, after adding 0.3 percent on Wednesday. The Dow Jones Industrial Average fell 92.40 points, or 0.5 percent, to 17,448.07. The Nasdaq Composite Index also decreased 0.5 percent.
Aggreko has seen its pre-tax profits drop from £130million to £102million, affected by a number of factors including the slowdown in the North American oil and gas sector and civil war in Yemen. The power provider has created two separate business units which came into effect this month as it looks to adapt to market conditions. It said the move will include the “streamlining” of back-office processes and closing some depots.
Lundin Petroleum has reported second quarter earnings and production below expectations in the second quarter of 2015. The company lowered its 2015 production guidance but has kept its year-end production target. Earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped 38% on the year to $106.5million.
The Saudi stock market is showing its mettle in the face of the latest oil rout that drove Brent into a bear market in July. The kingdom’s Tadawul All Share Index has retreated 4.2 percent since the end of June, compared with declines of 15 percent in Brazil in dollar terms, 11 percent in Russia and almost 10 percent in Nigeria. Brent, the benchmark oil grade against which Saudi crude is priced, has tumbled 21 percent in that period. The resilience shows how the world’s biggest crude producer is riding out the slump thanks to the confidence of locals who account for almost all the $525 billion market’s investors and the government’s determination to press ahead with infrastructure spending.
Oil climbed amid speculation the drop below $50 a barrel in London for the first time since January was excessive. Brent futures gained 1.7 percent, paring a 5.2 percent fall on Monday. US oil prices have slumped close to levels that will curb supply growth, according to consultant Petromatrix GmbH. The nation’s crude inventories probably declined for a second week, according to a Bloomberg survey before government data due Wednesday.
Noble Energy posted a $109million loss in the second quarter of the year despite increased sales of oil and natural gas. The company said it expects it will be increasing production throughout the rest of the year but it is likely to be at an increasingly cheaper cost. Noble has posted second quarter profits of $101million down 68% from the $323million the company had earned the same time last year.
Oil fell to a six-month low in London as Iran vowed to boost production immediately after sanctions are lifted and manufacturing in China slowed. Brent futures declined as much as 2.6 percent, extending an 18 percent drop in July that was the biggest in seven months. Iran can raise output by 500,000 barrels a day within a week of sanctions ending, the state-run Islamic Republic News Agency reported. A Chinese private factory gauge released on Monday fell to a two-year low in July, while an official index on Saturday slipped to the lowest in five months.
President Energy has granted the option to acquire ordinary shares as it looks to select directors and senior management as part of its Global Incentive Plan (GIP). The company said the option will be subject to standard conditions under the GIP, including share price performance targets, three year vesting periods and have an exercise price of 11.5p.
Hercules Offshore said it plans to file for creditor protection in the coming weeks in a bid to end the year with a restructured balance sheet. The company has been struggling for a number of months because of an oversupplied rig markets and slumping oil prices that have forced producers to reduce spending.
Oil trimmed losses that tipped prices into a bear market amid a broader commodity rout as trading volatility advanced to the highest in almost two weeks. Futures climbed as much as 1 percent in New York after closing on Thursday more than 20 percent below this year’s peak in June, meeting the common definition of a bear market. U.S. crude supplies remain almost 100 million barrels above the five- year average after an unexpected increase through July 17, government data showed Wednesday. A measure of price fluctuations rose Thursday to the highest level since July 10. Oil’s rebound from a six-year low in March has faltered on signs a global surplus will persist. Prices have been swept up in a broad selloff of raw materials, which have fallen to a 13- year low amid concerns that economic growth will stagnate in China, the biggest consumer of energy, metals and grains.
Energy giant SSE lost 90,000 customer accounts in the last three months but gave no indication that it would follow rival British Gas in cutting prices. Shares fell 4% as the group also said that annual profits from its energy supply arm were likely to fall. The trading update comes weeks after a probe by the Competition and Markets Authority (CMA) found suppliers have been overcharging customers by around £1.2 billion a year - and said that it was considering proposals that could see bills slashed.
Halliburton Co.’s takeover of Baker Hughes Inc. is facing resistance from US enforcement officials who are concerned the tie-up could hurt competition, according to a person familiar with the matter. Justice Department lawyers reviewing the proposed $34.6 billion transaction are worried about consolidation in the industry from combining the No. 2 and No. 3 firms, said the person, who asked not to be identified because the review is confidential. Though Halliburton has proposed selling some assets to other companies, government officials aren’t convinced its plan would restore sufficient competition, the person said.
FMC Technologies has seen a drop in second quarter revenue which fell 15% from the year before. The company said the figure decreased from $1.99billion in 2014 to $1.70billion. This was mainly due to decline in North American land market and its impact on the subsea engineering specialist’s surface technologies revenue.
Baker Hughes has posted a quarterly loss compared with its profit one year ago. A decline in oil prices has kept a lid on drilling activity for the company, which was bought over by Halliburton last year. Baker Hughes said net loss attributable was $188million - or 43 cents a share - in the second quarter of 2015.
Brent held losses near a two-week low amid a broader rout in commodities as Iran’s plan to regain market share bolstered speculation a global glut will persist. Futures were little changed in London after falling 0.8 percent Monday. Iran is seeking to restore production once sanctions are removed regardless of the impact on prices, Oil Minister Bijan Namdar Zanganeh said. US crude stockpiles are set to remain almost 100 million barrels above the five-year seasonal average even as supplies are forecast to have dropped for a second week. Brent’s recovery from a six-year low has faltered on signs the surplus will be prolonged as Iran seeks to restore output after its nuclear accord with world powers, joining OPEC members in defending market share. The full impact of increased Iranian exports won’t be observed until 2016, banks including Citigroup Inc. predicted.
US oil fell below $50 a barrel and gold traded near a five-year low after a selloff that’s seen commodities slide to the lowest in 13 years. The dollar held gains, while most Asian shares climbed. West Texas Intermediate oil fell 0.3 percent to $49.98 a barrel by 1 p.m. in Tokyo, while gold futures retreated 0.4 percent for a ninth straight decline. The dollar held near a three-month high against the euro, while the yen touched its weakest in a month. The MSCI Asia Pacific Index edged higher with most stocks climbing, and the Topix index rose 0.3 percent. US stock futures were little changed.
The Ibovespa fell for a second day, led by Petroleo Brasileiro SA, after Finance Minister Joaquim Levy said that a credit downgrade by Moody’s Investors Service is more likely if Brazil doesn’t make economic adjustments. Traders also pushed down the value of shares after newspaper Folha de S Paulo reported Saturday that lower house President Eduardo Cunha would rebel against the administration by blocking a fiscal-austerity package designed to shrink the budget deficit. His announcement escalated a political crisis that already had driven President Dilma Rousseff’s popularity to a record low and revived talks of impeachment.
Halliburton has seen a 93% drop in its quarterly profits following the decline in oil prices since last year. The oilfield services provider said it had incurred about $400million in charges as companies have reduced drilling activity. The company’s net profit fell to $53million – six cents a share – in the second quarter of 2015.
Afren has suspended its shares amidst continued uncertainty over its financial position. The company said its shares were suspended by the Financial Conduct Authority at its request. It comes after an ongoing business review showed near-term production was set to be “materially lower” than previous estimates given alongside its proposed restructuring in March.
Savannah Petroleum has raised $36million after placing more than 61million shares at a value of 38 pence each. The Niger focused oil and gas firm said an estimated 17,136,000 of these placing shares will be subscribed directly within the company. The placing shares represent 47% of the company’s existing ordinary share capital and will be issued in two tranches.
Riverstone Holdings has invested up to $100million in Carrier Energy Partners. The deal comprises $67million from Riverstone Global Energy and Power Fund VI and $33million from Riverstone Energy Limited.
Range Resources said budgets have now been finalised for an onshore block in Trinidad. The asset, St Mary's block, has been described as 'highly prosepctive' by the company. A four well drill programme has now been committed to, with expected completion by 2018.