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 CALGARY, Alberta, Nov. 9 /PRNewswire/ -- North Canadian Oils Ltd. (AMEX: NCO) announced today that third quarter results reflected a quarterly profit for the first time this year as well as strong quarterly cash flow. Additional operating rationalizations continue to be pursued to further improve financial performance.
 Cash generated from operations for the third quarter amounted to $21.3 million, down from $24.9 million in the same period a year ago, as an increase in oil and gas cash flow was outweighed by the combined effects of reduced margins from gas marketing plus lower mining and investment income. The gain in oil and gas reflected reduced operating and administrative costs, plus higher natural gas prices, with a partial offset from lower oil and gas liquids prices.
 Total revenues for the quarter were $97.5 million, up from $89.2 million in the third quarter of 1992, mainly due to increased sales of third party gas.
 Net earnings at $3.8 million were down from $4.1 million in the same quarter a year earlier, as the reduced cash flow plus a $2.4 million increase in depreciation, depletion, and amortization expense more than offset a $4.6 million reduction in income taxes.
 For the first nine months of 1993, cash generated from operations was $47.7 million, compared to $72.7 million in the same period of 1992, and the company's net loss amounted to $18.9 million compared to net earnings of $8.7 million. On a per share basis, the loss for the nine months was 64 cents per common share compared to earnings of 10 cents per share a year earlier. Cash generated at $1.17 per common share for the nine months was down from $1.85 per share.
 Capital expenditures for property and equipment for the first nine months of 1993 were $16.7 million net of property dispositions of $21.2 million, which included the sale of properties at Medicine Hat in the third quarter for $8.0 million. In the first nine months of the previous year, capital expenditures of $105.0 million included the $75 million acquisition of Shell Canada Ltd.'s interests in the Progress area of northern Alberta.
 Natural gas production in the third quarter averaged 221 million cubic feet per day, compared to 224 million cubic feet per day a year earlier, and the average price rose to $1.30 per thousand cubic feet from $1.25 per thousand cubic feet.
 Crude oil and gas liquids production averaged 6,423 barrels per day, up from 6,306 barrels per day. The average price realized by North Canadian for its oil and gas liquids production was $18.83 per barrel in the quarter, down from $20.03 per barrel in the same quarter a year ago.
 Excluding farmouts, NCO drilled 29 gross (10.1 net) development wells in the quarter, resulting in 24 gross (7.1 net) gas wells and 3 gross (2.0 net) oil wells, all in Western Canada.
 North Canadian also announced that it is calling all of the 828,000 outstanding Class B Series 7 Preferred Shares for redemption on Dec. 10, 1993. The shares will be redeemed at $25.00 per share plus accrued dividends to the redemption date of 36 cents per share.
 A Notice of Redemption will be mailed to all holders of Class B Series 7 Shares on Nov. 10, 1993.
 The company's common and preferred shares are traded on the Toronto and Montreal stock exchanges (NCO) in Canada, and its common shares are traded on the American Stock Exchange (NCO) in the United States.
 Comparative Highlights
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 (Restated) (Restated)
 (millions of dollars
 except per share amounts)
 Revenues $97.5 $89.2 $303.1 $255.5
 Operating income
 Oil and gas $0.2 ($1.2) $1.1 ($1.6)
 Gas marketing 0.2 2.8 (13.0) 8.9
 Cogeneration 0.4 0.2 (2.7) 0.5
 Total 0.8 1.8 (14.6) 7.8
 Corporate and other 0.4 4.3 (8.9)(a) 5.5
 Income taxes 2.6 (2.0) 4.6 (4.6)
 Per common share $0.06 $0.07 ($0.64) $0.10
 Cash generated from
 operations $21.3 $24.9 $47.7 $72.7
 Per common share $0.54 $0.62 $1.17 $1.85
 Weighted average common
 shares outstanding
 (millions) 36.8 36.6
 (a) Includes restructuring costs
 Natural gas (mmcfd) 221 224 235 237
 Crude oil and NGL
 (bpd) 6,423 6,306 6,611 6,175
 Natural gas marketing
 sales (mmcfd) 567 522 585 551
 -0- 11/9/93
 /CONTACT: Gordon B. Singer, VP and CFO, 403-231-0116; or Pat Trottier, Supervisor, Investor Relations, 403-231-0461/

CO: North Canadian Oils Ltd. ST: Alberta IN: OIL SU: ERN

LS-LM -- LA044 -- 2525 11/09/93 21:04 EST
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Publication:PR Newswire
Date:Nov 9, 1993

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