Nexen reported disappointing Q2 results july 17th,
marked by lower-than-expected production, a charge for stock-based compensation and a loss at its gas marketing unit.
Record Commodity Prices - BUT Nexen Net Income Flat
The company’s revenue rose 48% to $2.07 billion, however net income was nearly flat at $380 million, or $0.70 per share. Cash flow was $946 million, or $1.78 per share – analysts were expecting $2.18 per share. The company said that its Q2 oil production was nearly unchanged from the year-ago quarter (~254,000 barrels of oil per day), reflecting a two-day strike at Scottish refinery that shut down a pipeline serving its massive Buzzard oil field in the North Sea.
Nexen also recorded a $240 million after-tax charge for stock-based compensation, while poor results at its marketing arm cut cash flow by $164 million as bets on natural gas price disparities went awry.