Canadian Pure Sources Ltd. ’s revenue took a success within the fourth quarter of 2022 as excessive winter climate compelled the oilsands big to chop manufacturing.
The Calgary-based firm reported Thursday that it earned $1.52 billion, or $1.36 per diluted share, for the quarter ended Dec. 31, down from $2.53 billion, or $2.14 per diluted share, within the last three months of 2021. .
The revenue missed the market’s expectations, as the common analyst estimate was a revenue of $2.27 per share, based on estimates compiled by monetary markets information agency Refinitiv.
CNRL’s manufacturing within the quarter averaged 1,294,679 barrels of oil equal per day, down from 1,313,900 in the identical quarter a yr earlier.
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On a convention name with analysts, firm president Tim McKay mentioned the decline in manufacturing was partly as a result of excessive chilly in northern Alberta in December, which brought about tools failures at CNRL’s Horizon oil sands mine.
“We needed to full a number of mine tools repairs, which resulted within the lowered fee at Horizon for each December 2022 and January 2023,” McKay mentioned, including that the climate can also be anticipated to cut back the corporate’s Q1 2023 manufacturing by about 25,000 barrels per day will have an effect on.
The corporate’s full-year 2023 thermal and oil sands mining and manufacturing steerage stays unchanged, McKay mentioned. CNRL is presently finishing a “reliability enchancment” venture at Horizon, which the corporate says will lengthen the main upkeep schedule on the oil sands mine to as soon as each two years from the present every year.
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CNRL nonetheless expects whole manufacturing of between 1,330,000 and 1,374,000 barrels of oil equal per day in 2023, a rise from 2022’s full-year manufacturing of 1,281,434 barrels of oil per day.
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The corporate introduced a rise in its quarterly dividend on Thursday, from 85 cents per share to 90 cents per share.
McKay additionally used Thursday’s analyst name as a chance to focus on the progress the corporate has made within the abandonment and restoration of outdated oil wells.
The subject has been within the headlines currently after Alberta Premier Danielle Smith unveiled her proposed RStar program, which might give vitality corporations tax breaks for assembly their authorized obligation to finish oil rig cleanup work.
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A Scotiabank report final month named CNRL as an organization that might be poised to learn from such a program.
McKay mentioned on Thursday’s name with analysts that the corporate believes it’s an business chief in abandonment and restoration, including that it has efficiently sealed and decommissioned greater than 3,000 wells a yr in every of the previous two years took.
“At this fee, we can abandon one hundred pc of our present stock of inactive wells in about 10 years,” he mentioned.
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