BIGGEST LOSERS IN THE OIL MARKET
Oil companies have been affected by the hefty downfall in crude prices, making it much difficult for some people to recuperate their losses. In the event prices continue to slide, chances are these corporations could be enduring severe financial hardships.
Below are the three biggest losers in the oil industry.
Apache Corporation
Market capitalization: $18 billion
The American oil and gas corporation explores, develops, and produces crude oil, as well as natural gas and natural gas liquids. Despite its good market cap, Apache Corp. recorded a revenue of $13.75 billion in 2014 from $16.42 billion in 2013. Net income was at $4.89 billion in 2014 from $2.23 billion in 2013. The company sustained most of its losses after it incurred non-cash charges of $5.2 billion, including $2 billion for losses in the value of its oil and gas properties.
In order to recover their losses, Apache is reducing its rig count and bolstering the efficiency of their rig operations in Oklahoma and Texas.
Linn Energy, LLC
Market capitalization: $805 million
US oil firm Linn Energy, LLC is known for making huge investments in shale oil projects. Even though net revenues increased, the oil and natural gas producer has been in the red for the last few years as it logged losses of $458 million in 2014 from $697 million in 2013.
A long-term debt of approximately $10 billion is caused by lower energy prices. And if prices fail to recover, Linn might not be able to carry its debt.
Transocean Ltd.
Market capitalization: $3.59 billion
Transocean Ltd. is a provider of mobile offshore drilling fleet, alongside equipment and personnel for operations in order to search and develop oil and gas wells. It primarily focuses on deepwater environments.
The Swiss company sustained losses of $1.89 billion in 2014 from $1.41 billion in 2013. On the other hand, revenues steadied at $9.17 billion in 2014 from $9.48 billion in 2013. Net income climbed to $1.95 billion in 2014 from $1.39 billion in 2013.
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