Santa Fe-Southern Pacific Corp. reported that its net income for the third quarter plummeted due to a large writedown on its petroleum operations.
Net income for the period ended Sept. 30 was $12.4 million, compared to $151.4 million a year ago. Revenue fell to $1.4 billion from $1.7 billion.
The Chicago-based railroad and natural resources company recorded a writedown of $130.6 million for the quarter, which it said was related to the effect of lower oil and gas prices on Santa Fe Energy Partners. Santa Fe Southern Pacific Corp. has a 78% interest in the oil and gas exploration concern.
Overall petroleum production and marketing activities, which are conducted through Santa Fe Energy Co., had an operating loss of $138.3 million for the quarter after generating income of $32.3 million during the same period last year. The company said oil production was 10% below last year and natural gas production fell 36%.