These results reflect increased production from the successful ramp up of the company's high margin production at Buzzard. Although WTI increased during the quarter and averaged U.S. $75.38/bbl compared to $70.48/bbl a year ago, Nexen was unable to retain the full benefit of the price increase due to the weakening U.S. dollar.
At the end of the quarter, Nexen was carrying almost 600,000 bbls of oil in inventory. The sale of this inventory will generate additional cash flow in the fourth quarter. Net income for the quarter includes a recovery of $55 million (after tax) for stock-based compensation expense.
Growing production volumes reflect completed development projects in the North Sea, such as Buzzard and Duart. At Syncrude, production was strong following a turnaround in the second quarter. The company's assets in Yemen, Canada and Colombia continue to meet expectations.
"A number of our development projects are now on stream, but these have taken us longer to complete than we expected," said Charlie Fischer, Nexen's president and CEO. "As we bring these development projects on stream, we are starting to achieve our target rates, and our financial results are beginning to show the significant value of these projects. The full year impact of these new volumes will add to our production growth in 2008."
Most Popular Articles
From the Career Center
Jobs that may interest you