Canadian Natural Resources logo

CNQ - Canadian Natural Resources News Story

C$21.7 -0.3  -1.5%

Last Trade - 6:15pm

Sector
Energy
Size
Large Cap
Market Cap £15.27bn
Enterprise Value £29.47bn
Revenue £11.41bn
Position in Universe 27th / 2679

UPDATE 3-Canadian Natural swings to loss, slows output as oil prices slump

Thu 7th May, 2020 10:30am
(Adds details on dividend, production cuts)
    By Arundhati Sarkar and Jeff Lewis
    May 7 (Reuters) - Canadian Natural Resources Ltd  CNQ.TO 
posted a quarterly loss on Thursday compared with 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
roughly 14% for May due to weak prices and uncertainty around
the outbreak of COVID-19, the respiratory illness caused by the
coronavirus.
    But the Calgary, Alberta-based company maintained its
quarterly dividend of C$0.425 per share, in contrast with rivals
including Suncor Energy  SU.TO  that have cut payouts to
preserve cash.  urn:newsml:reuters.com:*:nL4N2CN442
    Average realized prices for crude and natural gas liquids
fell by more than half to C$25.90 per barrel in the first
quarter, before risk management.
    Alberta's hopes of a rebound this year for the Western
Canadian province's 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, however, rose nearly 14% 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 curtail about 120,000 barrels per
day (bpd) of production for May, adding to wider pullbacks
across the industry. 
    Canadian producers have cut output by about 1 million bpd
and could lower production further to accelerate maintenance
work at production facilities, Canadian Natural President Tim
McKay told analysts.
    Canadian Natural said production at its Athabascan oil sands
project will be 100,000 bpd lower than normal on a net basis in
July and August due to maintenance.
    The company's net loss stood at C$1.28 billion ($909 
million), or C$1.08 per share, in the quarter ended March 31,
compared with a profit of C$961 million, or 80 Canadian cents
per share, in the year-ago period.  urn:newsml:reuters.com:*:nGNE6GPNqH
        
($1 = 1.4083 Canadian dollars)

 (Reporting by Arundhati Sarkar in Bengaluru; additional
reporting by Jeff Lewis in Toronto Editing by Krishna Chandra
Eluri, Paul Simao and Steve Orlofsky)
 ((Arundhati.Sarkar@thomsonreuters.com; +1 646 223 8780 Ext:
2776; Reuters Messaging:
arundhati.sarkar.thomsonreuters.com@reuters.net;
jeff.lewis@tr.com; +1-647-200-7236))
© Stockopedia 2020, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.