British energy giant BP said Tuesday it expects to report a decline in fourth-quarter earnings because of weaker-than-expected performance by its refining and marketing division. The news came a day after BP announced $1.3 billion in asset sales in the North Sea and the Gulf of Mexico. In a brief interim update on fourth quarter financial and operating statistics, BP said U.S. gas price realizations are expected to rise slightly ahead of the change in Henry Hub prices. However, the overall refining, marketing and trading environment deteriorated relative to the third quarter of 2002. Liquids realizations are expected to be broadly in line with last quarter. But chemicals margins are expected to weaken as prices lagged the rise in feedstock costs. Demand remains sluggish, BP said. Hydrocarbon production is expected to be up about 3% and 1.5% for the full year and 4Q, respectively, compared with 2001. North American NGL margins are expected to be slightly lower than in the third quarter. Retail margins are expected to be down from 3Q02 due to seasonal declines compounded by significant crude price increases at year-end. All these financial data, however, are subject to change and may differ considerably from the final numbers that will be reported on Feb.11, BP said.
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Centrica Scores Million More North American Customers with Atco Purchase
British energy giant Centrica plc continued its shopping spree in North America Tuesday, announcing it will pay C$128.5 million to purchase the natural gas and power businesses of Atco Ltd., which serves one million Alberta customers.
Schlumberger to Take $3.2 Billion 4Q Charge, Mainly for IT Business
International oilfield services giant Schlumberger Ltd. announced that it will take its largest one-time charge ever in the fourth quarter, a $3.17 billion, or $5.44/share, charge to earnings mainly related to problems in its recently acquired technology business.
Schlumberger to Take $3.2 Billion 4Q Charge, Mainly for IT Business
International oilfield services giant Schlumberger Ltd. announced that it will take its largest one-time charge ever in the fourth quarter, a $3.17 billion, or $5.44/share, charge to earnings mainly related to problems in its recently acquired technology business.
Centrica Scores Million North American Customers with Atco Purchase
British energy giant Centrica plc continued its shopping spree in North America Tuesday, announcing it will pay C$128.5 million to purchase the natural gas and power businesses of Atco Ltd., which serves one million Alberta customers.
S&P Reduces Williams Cos. Ratings to Junk
Williams Cos. took on more water Tuesday as Standard & Poor’s (S&P) lowered the energy giant’s corporate credit rating two notches to “BB+” (junk bond status) from “BBB.” The move followed the company’s second quarter outlook released Monday, which precipitated a stock price drop-off to a 20-year low in trading that day, and sparked speculation that cash-strapped Williams could become the target of a takeover (see Daily GPI, July 23). Williams Cos. stock closed at $1.19 after an 82-cent (40%) plummet in Tuesday’s trading.
S&P Reduces Williams Cos. Ratings to Junk
Williams Cos. took on more water Tuesday as Standard & Poor’s (S&P) lowered the energy giant’s corporate credit rating two notches to “BB+” (junk bond status) from “BBB.” The move followed the company’s second quarter outlook released Monday, which precipitated a stock price drop-off to a 20-year low in trading that day, and sparked speculation that cash-strapped Williams could become the target of a takeover (see Daily GPI, July 23). Williams Cos. stock closed at $1.19 after an 82-cent (40%) plummet in Tuesday’s trading.
Lawsuits Against PG&E Moved Out of Bankruptcy Court
The U.S. bankruptcy judge in Pacific Gas and Electric Co.’s 14-month-old Chapter 11 case has moved lawsuits against the giant utility and its parent, PG&E Corp., out of the federal court, saying they should be dealt with in California’s state Superior Court system. The utility had tried to move suits by the state attorney general into the bankruptcy court, arguing that they impact its plans to get out of bankruptcy.
Williams Unveils $3B Package to Satisfy Credit, Financial Concerns
Faced with mounting concerns from investors and credit-rating agencies, energy giant Williams Cos. announced a $3 billion-plus plan last Tuesday to improve the company’s flailing balance sheet over the next 12 months. However, Williams’ strategy drew mixed reactions from the major ratings’ agencies and failed to stem its stock losses.
Japanese Interests Plan LNG Terminal in Los Angeles Harbor
Japanese interests, including giant Mitsubishi Corp., are pursuing a possible liquefied natural gas (LNG) receiving terminal in Los Angeles Harbor, which combined with neighboring Long Beach is the busiest port in the United States and the third busiest in the world. Rather than suffer through the pitfalls of their predecessors by overlooking local concerns, the Japanese are making a grass roots effort to get this project off the ground.
