Energy Biz Recap: McMoRan’s Unexpected Profit, Siemens Lighting Dims
Parker Drilling (NYSE:PKD) announced a delay in completion of two new Alaska drilling rigs. The extended construction schedule and related increased costs will result in an asset impairment charge which is expected to reduce fourth quarter earnings per share by around $0.95.
Siemens (NYSE:SI) says its Osram lighting unit will cut 850 jobs by 2014, due to the declining sales seen for traditional lighting products on account of the LED market’s growth. Fellow lighting giants General Electric (NYSE:GE) and Philips (NYSE:PHG) are likely to face similar pressure.
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Walter Energy (NYSE:WLT) holds in positive territory despite lowering its fourth quarter guidance and estimates of output for the year. Production problems in Alabama and weak results from some new startup projects are to blame for the shortfall, says the company.
McMoRan’s (NYSE:MMR) fourth quarter unexpectedly swings to a net profit of $28.4 million from a loss of $84.3 million. McMoRan expects first quarter output of 155 million cubic feet equivalent a day, above the analyst estimate of 128.9 million. Following the test of a well in the Gulf of Mexico the firm also expects to increase its 2012 production estimates.
Chevron (NYSE:CVX) gets some bad news from Bulgaria after the nation bans it from using any “fracking” techniques to extract oil within its borders, which was a governmental move in response to the large protest rallies against the practice.
Spectra Energy (NYSE:SE) says it is open to buying natural gas pipeline assets in the Rocky Mountains from Kinder Morgan (KM) and El Paso (NYSE:EP). The two firms might try to sell some of them in order to obtain federal clearance for their merger. The companies are already attempting to sell parts of El Paso’s oil and gas exploration/production unit in order to help finance the merger.
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