NORTH CANADIAN ANNOUNCES FIRST QUARTER RESULTS
NORTH CANADIAN ANNOUNCES FIRST QUARTER RESULTS CALGARY, Alberta, May 14 /PRNewswire/ -- North Canadian Oils Ltd.
(AMEX: NCO; Toronto, Montreal: NCO) announced its results for the first quarter of 1992 reporting total revenues, net of royalties, of $78 million as compared to $89.6 million in the first quarter of 1991. Operating revenues, net of royalties, were $73.6 million as compared to $83.5 million due to weak product prices and lower production volumes. Investment and other income declined from $4.4 million in 1991 to $3.3 million in 1992 due mainly to the impact of lower Canadian prime lending rates upon which returns from the investment portfolio and note receivable are based.
Cash generated from operations decreased from $27.6 million in 1991 to $23 million in 1992. This represents $0.70 and $0.59 per common share respectively, calculated after the payment of preferred share dividends. Net earnings declined from $6.7 million to $1.9 million while net earnings attributable to common shares, after the deduction of preferred share dividends, were $0.2 million ($0.01 per common share) in 1992 as compared to $4.6 million ($0.13 per common share) in 1991. Cash flow and earnings declined due to the combined effect of lower product prices and high depreciation, depletion and amortization expenses. Natural gas production averaged 250 mmcfd for the first three months of 1992 as compared to 253 mmcfd for the same period of 1991. The decline was due primarily to problems in Alberta on the James River pipeline, at the Grizzly station and on the northeast leg of the system. Production of crude oil and natural gas liquids declined from 7,250 bpd to 6,174 bpd as the result of shipping restrictions in southern Alberta, lower productivity from wells in the Rainbow area, and normal reservoir declines. The average price received for natural gas was $1.28 per mcf for the first quarter of 1992 as compared to $1.53 per mcf for the same period of 1991. Natural gas prices continue to be adversely affected by large industry surpluses within Alberta causing severe gas-on-gas competition for available markets. The average price for crude oil and natural gas liquids declined from $18.70 per bbl in 1991 to $16.61 per bbl in 1992 and continue to be impacted by high differentials between light and medium gravity crudes. Capital expenditures for the first quarter of 1992 were $9.0 million as compared to $31.9 million reflecting the company's exploration focus toward established prospect areas of west central and southern Alberta. A total of 15 gross (9.4 net) exploration and development wells were drilled during the three-month period for an overall success ratio of 100 percent. The company stated that although financial and operating results for the first quarter of 1992 continue to be negatively impacted by low product prices, progress continues to be made toward improved profitability through a number of initiatives such as cost rationalization, restructuring and better asset management. North Canadian is a senior exploration, production, marketing and power cogeneration company. Exploration activity is concentrated in the Western Sedimentary Basin of Canada while marketing and cogeneration activities have a North American focus. NCO's common shares are traded on the Toronto and Montreal stock exchanges in Canada and The American Stock Exchange in the United States. NORTH CANADIAN OILS LTD. Consolidated Results for the Quarter Ended March 31 Percent 1992 1991 Change Operating Daily production Natural gas (mmcfd) 250 253 (1) Crude oil and NGLs (bpd) 6,174 7,250 (15) Third party natural gas sales (mmcfd) 254 225 13 Wells drilled (net) Natural gas 5.5 32.9 (83) Crude oil 3.9 2.4 63 Dry and abandoned --- 12.4 (100) Total 9.4 47.7 (80) Success ratio 100 pct 74 pct Financial ($ millions except per share amounts) Total revenues 83.7 97.3 (a) (14) Total revenues, net of royalties 78.0 89.6 (a) (13) Cash generated from operations 23.0 27.6 (17) per common share, after preferred share dividends 0.59 0.70 (16) Net earnings attributable to common shares 0.2 4.6 (a) (96) per common share 0.01 0.13 (a) (92) Capital expenditures Crude oil and natural gas properties Finding and Onstream 7.5 30.4 (75) Acquisitions 0.2 0.6 (67) Divestitures (1.1) --- 100 Crude oil and natural gas (net) 6.6 31.0 (79) Marketing and other 2.4 0.9 167 Total capital expenditures 9.0 31.9 (72) Total assets 1,086.1 1,101.0 (b) (1) Weighted average number of common shares outstanding (millions) 36.5 36.4 (a) Restated (b) As at Dec. 31, 1991 -0- 5/14/92 /CONTACT: G. Barry Padley, senior VP and CFO of North Canadian Oils Ltd., 403-261-4320/ (NCO) CO: North Canadian Oils Ltd. ST: Alberta IN: OIL SU: ERN
AL -- LA024 -- 0254 05/14/92 12:52 EDT
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|Date:||May 14, 1992|
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