NEW YORK: Oil company ConocoPhillips has slashed its 2015 drilling budget, cutting it for the second time in less than two months as falling oil prices pressure petroleum-sector earnings.
ConocoPhillips now plans $11.5 billion in capital spending for 2015, down from the $13.5 billion announced in December, which was itself a cut of 20 percent from the 2014 level.
The move came as ConocoPhillips reported a net loss of $39 million for the fourth quarter, compared with $2.5 billion in profits a year ago, due in part to lower commodity prices.
"We are responding decisively to a weak price outlook in 2015 by exercising our capital and balance sheet flexibility," said CEO Ryan Lance.
"In this environment our priorities are to protect our dividend and base production, stay on track for cash flow neutrality in 2017, and preserve future opportunities."
ConocoPhillips said the cuts would entail delays in some US drilling and deferrals on some major projects.
Also Thursday, Anglo-Dutch oil giant Royal Dutch Shell unveiled plans to slash spending by more than $15 billion over the next three years after posting lower annual profits on tumbling oil prices.
The smaller US firm, Occidental Petroleum, said it would spend $5.8 billion in capital investment in 2015, down from $8.7 billion in 2014, as it reported a swing into a fourth-quarter loss of $3.4 billion.
Oil prices have dropped about 60 percent since June due to copious supplies, weak demand and a decision by the Organization of the Petroleum Exporting Countries to resist calls for it to cut output in response to low prices.
ConocoPhillips cuts oil drilling budget again
ConocoPhillips cuts oil drilling budget again
Closing Bell: Saudi stocks slip as Tadawul falls 1% amid broad market weakness
RIYADH: Saudi stocks fell sharply on Tuesday, with the Tadawul All Share Index closing down 108.14 points, or 1.03 percent, at 10,381.51.
The broader decline was reflected across major indices. The MSCI Tadawul 30 Index slipped 0.78 percent to 1,378.00, while Nomu, the parallel market index, fell 1 percent to 23,040.79.
Market breadth was strongly negative on the main board, with 237 stocks falling compared to just 24 gainers. Trading activity remained robust, with 164.7 million shares changing hands and a total traded value of SR3.19 billion ($850.6 million).
Among the gainers, SEDCO Capital REIT Fund led, rising 2.73 percent to SR6.77, followed by Chubb Arabia Cooperative Insurance Co., which gained 2.69 percent to SR20.20.
National Medical Care Co. added 1.72 percent to close at SR141.60, while Alyamamah Steel Industries Co. and Thimar Advertising, Public Relations and Marketing Co. advanced 1.57 percent and 1.13 percent, respectively.
Losses were led by Al Masar Al Shamil Education Co., which tumbled 8.36 percent to SR24.65. Raoom Trading Co.fell 6.75 percent to SR64.20, while Alkhaleej Training and Education Co. dropped 6.60 percent to SR18.12 and Naqi Water Co. declined 5.51 percent to SR54.00. Gulf General Cooperative Insurance Co. closed 5.44 percent lower at SR3.65.
On the announcement front, Chubb Arabia Cooperative Insurance Co. signed a multiyear insurance agreement with Saudi Electricity Co. to provide various coverages, expected to positively impact its financial results over the 2025–2026 period. The deal will run for three years and two months and is within the company’s normal course of business.
Meanwhile, Bupa Arabia for Cooperative Insurance Co. announced a one-year health insurance contract with Saudi National Bank, valued at SR330.2 million, covering the bank’s employees and their families from January 2026. Despite the sizable contract, Bupa Arabia shares fell 0.8 percent to close at SR137, weighed down by the broader market weakness.
In contrast, United Cooperative Assurance Co. revealed an extension of its engineering insurance agreement with Saudi Binladin Group for the Grand Mosque expansion in Makkah. The contract value exceeds 20 percent of the company’s gross written premiums based on its latest audited financials and is expected to support results through 2026. However, the stock came under selling pressure, ending the session down 4.51 percent at SR3.39.
