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El Paso Posts 2Q Profit, Discloses Investigation in Iraqi Oil Sales
Boosted by stronger results in its regulated business units, El Paso Corp. reported Tuesday that it recorded a profit in 2Q2004. With Securities and Exchange Commission (SEC) approval, El Paso filed the quarterly statement late to reconcile prior income statements between 2001 and 2003.
For 2Q2004, the company posted a profit of $16 million (3 cents/share), compared with a loss of $1.24 billion (minus $2.07) in 2Q2003, as restated. Revenue in the quarter dropped to $1.52 billion from $1.57 billion a year earlier.
El Paso also disclosed in the filing that regulators are seeking information on Iraqi oil transactions under a United Nations program. The El Paso unit under scrutiny is part of the former Coastal Corp., which El Paso acquired in January 2001 (see Daily GPI, Jan. 30,, 2001).
The company said the CNG Co. unit received an order from the SEC earlier this month demanding a written statement and documents related to the UN oil-for-food program that governed Iraqi oil sales. A Senate investigation has discovered that former Iraqi leader Saddam Hussein’s regime reaped more than $21 billion before and during the program, which no longer exists, through oil surcharges and kickbacks.
CNG also received a subpoena from a U.S. district court grand jury seeking records related to the Iraqi oil deals between 1995 and 2003. The Senate’s Permanent Subcommittee of Investigations also is seeking information on a specific transaction in 2000, El Paso disclosed.
El Paso said it is cooperating with the U.S. Attorney and with other investigations into the transactions.
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