(RTTNews) - Crude oil and natural gas explorer Hess Corp. (HES: News ) reported Wednesday a fall in third-quarter profit, reflecting a sharp decline in revenues, hurt by drop in crude oil and natural gas prices. However, earnings on a per share basis came above analysts' expectations.

For the third quarter, net income attributable to the New York-based company declined to $341 million or $1.05 per share from $775 million or $2.37 per share in the same period previous year. On average, 16 analysts polled by Thomson Reuters expected the company to earn $0.55 per share for the quarter. Analysts' estimates typically exclude special items.

Exploration and Production earnings were $397 million, down from $699 million in the earlier year. Marketing and Refining posted earnings of $38 million, compared to $161 million in the same period last year. The company said its refining operations generated a loss of $3 million during the quarter, compared to an income of $46 million a year ago, as a result of lower refining margins.

In its second quarter, net income attributable to Hess was $100 million or $0.31 per share, compared to $900 million or $2.76 per share in the prior-year quarter.

Total revenues and non-operating income for the third quarter dropped to $7.38 billion from $11.39 billion in the comparable quarter last year. Analysts expected the company to report revenue of $7.52 billion for the quarter. Sales, excluding excise taxes, and other operating revenues were $7.27 billion, compared to $11.4 billion in the year-ago quarter.

Total revenues and non-operating income from Exploration and Production were $1.94 billion, in comparison with $2.59 billion last year.

In its second quarter, total revenues and non-operating income descended to $6.76 billion from the previous year's revenue of $11.7 billion.
During the recent quarter, the company recorded an after-tax income of $89 million related to the resolution of a royalty dispute on production from certain leases subject to the U.S. Deep Water Royalty Relief Act. In addition, the company posted a benefit of $12 million due to an income tax adjustment related to refining operations.

Total costs and expenses declined to $6.85 billion from $9.89 billion in the year earlier. Costs of products sold were $5.07 billion, down from $8.16 billion in the previous year.

Oil and gas production for the quarter was 420,000 barrels of oil equivalent per day, up 16% from 361,000 barrels of oil equivalent per day in the prior-year quarter. Crude oil net production per day increased to 297,000 barrels from 244,000 barrels in the previous year. Production of Natural gas liquids was 14,000 barrels per day, compared to 13,000 barrels per day in the year-ago quarter. Natural gas per mcf was 654,000, up from 625,000 last year.

The company said its average worldwide crude oil selling price, including the effect of hedging, was $56.07 per barrel, lower than $93.36 per barrel in the prior-year quarter. Average worldwide natural gas selling price was $4.60 per Mcf, down from $7.60 per Mcf in the same quarter last year.

For the nine-month period, net income attributable to the company plunged to $382 million or $1.17 per share from $2.43 billion or $7.47 per share in the same period last year. Total revenues and non-operating income for the period declined to $21.01 billion from $33.81 billion a year ago.

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