Unocal’s Credit Outlook, Rating Reduced
- Share via
Unocal Inc.’s credit outlook was revised to negative by Moody’s Investors Service and its rating was reduced by Egan-Jones Ratings Co. after the oil and natural-gas producer said first-quarter profit plunged.
Egan-Jones cut Unocal one level to BBB from BBB-plus after the company said Tuesday that net income fell 93% from a year earlier and that output at a Gulf of Mexico oilfield dropped. The rating is two notches above “junk” status.
Moody’s changed its outlook on Unocal’s long-term debt to negative from stable, citing the effect of lower commodity prices on the firm’s debt levels and concerns about spending needed to sustain growth in oil and gas production.
In the first quarter, the price Unocal received for its natural gas worldwide fell by almost half, and it sold oil for 26% less. Total production slipped 3.6%.
Shares of El Segundo-based Unocal rose 56 cents to $37.75 on the New York Stock Exchange. They have risen 4.7% this year.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
