ConocoPhillips swings to loss on oil price slump, impairments

(Reuters) – U.S. oil and gas company ConocoPhillips swung to a first quarter loss on Thursday as it took big hits from impairments and the falling value of its stake in Canadian producer Cenovus Energy.

Crude prices have collapsed in the past six weeks as the coronavirus outbreak hit demand and a price war broke out between Russia and Saudi Arabia, prompting companies to slash spending and curb output.

The world’s largest independent oil and gas producer reported net loss of $1.69 billion, or $1.60 per share, in the first quarter ended March 31, compared with a profit of $1.83 billion, or $1.60 per share, a year earlier.

Production excluding Libya for the first quarter was 1.28 million barrels of oil equivalent (BOE) per day, a decrease of 40,000 barrels of oil equivalent per day from the same period a year ago.

ConocoPhillips said the total realized price per barrel was $38.81 in the quarter compared with $50.59 a year ago.

Earlier this month, ConocoPhillips slashed its 2020 production forecast for the third time this year and cut spending targets.