Coronavirus company news summary – HollyFrontier posts quarterly loss – Pioneer Natural reports lower profits in Q3

6 November 2020 (Last Updated November 6th, 2020 09:56)

6 November

US refiner HollyFrontier registered a smaller loss in Q3, thanks to fuel demand recovery and cost cuts. Oil refiners were pushed to reduce output and cut spending due to the demand slump caused by the Covid-19 induced lockdown restrictions. The company increased the amount of oil processed to 421,100bpd in the third quarter, a 11.5% growth from Q2, but a 17% decline from the corresponding period in 2019.

Norwegian offshore rig provider Prosafe reported lower losses in Q3 despite decline in revenues owing to the decrease in fleet usage and oil price collapse triggered by the pandemic. The company’s operating revenue for September quarter was $11.7m, a substantial decline from $56.5m from the same period last year. Prosafe’s fleet utilisation for the quarter fell by one-third from the previous quarter, leading to postponement of contracts to 2021.

US-based oil producer Apache Corporation posted a lower-than-expected loss of $4m or 16 cents per share in September quarter, beating analysts’ projections of 35 cents per share. The company has been posting losses for eight consecutive quarters, even as it reduced its capital spending for 2020 to $1bn from the planned budget of $1.9bn. The production for Q3 was 394,000bpd, which is projected to drop by 10% to 355,000bpd in the fourth quarter.

Oil and gas producer Pioneer Natural Resources registered a smaller profit for third quarter, as the ongoing pandemic wreaked havoc on crude prices and fuel demand. The oil prices were looking north after Covid-19 induced slump, however a resurgence in coronavirus cases thwarted the recovery. The company increased its production forecast for 2020 from between 356,000boepd and 371,000boepd to between 365,000boepd and 369,000boepd.

Hydrocarbon exploration company Canadian Natural Resources registered profits riding on the back of cost cutting and fuel demand recovery, thanks to relaxation of lockdown restrictions globally. The company is expected to save roughly $565m in operating costs for the current year. Canadian Natural Resources recorded an output of 1.1 million boepd in the September quarter, a 5.5% decrease from the corresponding period in 2019.