Canadian Natural reports hit on earnings
Canadian Natural Resources Ltd reported a quarterly loss on Thursday compared to a year-ago profit, hurt by the sharp decline in oil prices caused by the novel coronavirus outbreak and a price war between Saudi Arabia and Russia.
Canada’s largest oil and gas producer also withdrew its 2020 production outlook and said it would curtail production by 14 per cent for May due to the current uncertainty around the outbreak of
COVID -19, the respiratory illness caused by the novel coronavirus.
Average realized prices for crude and natural gas liquids were cut by more than half to $25.90 per barrel in the first quarter, before risk management.
Alberta’s hopes of a rebound this year for the long-struggling oil industry have been dashed by the crash in global crude prices, which has forced companies to adopt cost-cutting strategies.
Canadian Natural has slashed management pay and its spending budget.
Canadian Natural’s production output, however, rose nearly 14 per cent in the first quarter as the company took advantage of the Alberta government’s special production allowance, which permits additional oil output if it moves by rail.
The company said it would shut in 36,000 barrels per day (bpd) of high-cost conventional production output while lowering steam-driven oilsands output by 38,000 bpd in May.
The company’s net loss stood at $1.28 billion, or $1.08 per share, in the quarter ended March 31, from a profit of $961 million, or 80 cents per share, in the yearago period.