(RTTNews) - Friday, Berry Petroleum Co. (BRY: News ) reported a marked decline in profit for the third quarter, compared to the year ago impacted by lower commodity prices.

Berry's profit dropped to $19 million from $53.3 million in the year-ago period. On a per share basis, net income decreased to $0.41 from $1.16.

Non-cash gain on hedges, a net gain on asset sales, and inventoried volumes increased net income by approximately $3.3 million, or $0.07 per share, making adjusted net income for the third quarter $15.7 million or $0.34 per share.

Analysts polled by Thomson Reuters expected earnings of $0.29 for the quarter.

Total revenue declined to $143.45 million from $227.03 million last year. Analysts revenue expectations were $133.81 million.

Segment-wise, sales of oil and gas fell to $127.45 million from $193.89 million due to lower oil and natural gas prices. Sales of electricity declined to $9.13 million from $18.31 million and revenue from gas marketing declined to $5.21 million from $13.28 million.

Berry's gross oil-equivalent barrels of production declined to an average of 28,417 barrels a day from 35,150 barrels a day. Gross production of conventional crude oil fell to 19,310 barrels a day from 21,162 barrels a day. Natural gas production declined to 9,107 cubic feet a day from 13,988 cubic feet a day.
Average sales price for oil and gas after hedging decreased to $46.39 BOE from $67.04 BOE. Average crude oil sales price after hedging declined to $57.97 BOE from $76.00 BOE.

The company said that it has cut costs by 25% compared to the year-ago period. General and administrative costs were also lower by $0.78 per BOE as the company continues to realize the benefits of its cost reduction efforts. Interest expense was higher by $6.5 million compared to the third quarter of 2008 as a result of issuing $450 million of 10.25% senior unsecured notes during the second and third quarters of 2009.

For the nine-month period, Berry reported net income of $41.02 million or $0.89 per share, down from $145.52 million or $3.18 per share last fiscal. Revenue declined to $426.56 million from $596.83 million a year earlier.

On production, the company said it expect company-wide production to average 30,000 BOE/D in 2009 and production increase of 5% with strong quarterly increases in 2010. The company expects capital expenditure in the range between $220 million and $260 million in 2010.

BRY stock is currently trading at $25.01, down $2.60, on the NYSE.

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by RTT Staff Writer

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