Canada's Talisman Energy Posts Smaller Quarterly Loss
Nov 6 (Reuters) – Canadian oil and gas producer Talisman Energy Inc reported a smaller quarterly net loss compared with the year-earlier quarter, when it took a $1.04 billion impairment charge.
The company's net loss narrowed to $54 million, or 5 cents per share, in the third quarter ended Sept. 30 from $731 million, or 71 cents per share, a year earlier.
Lower North American gas prices and hedging losses weighed on the results, but the impact was partially offset by increased output and higher prices of natural gas liquids and oil.
Talisman Energy, in which activist investor Carl Icahn holds a 6.96 percent stake, said full-year production in its two core areas, the Americas and Asia Pacific, is expected to meet or exceed estimates.
The company is focusing on operations in North and South America and Southeast Asia as earnings weaken and its North Sea operations falter.
Full-year liquids production in North America is expected to come in at the top end of its outlook at 35,000 barrels per day, Talisman Energy said.
"Our internal analysis, together with external advice, confirms that a two-region model, with disciplined capital programs and steady operational improvements, is the best route to higher value for Talisman shareholders," Chief Executive Hal Kvisle said in a statement on Wednesday.
Kvisle took up top role last September following the abrupt departure of John Manzoni and is taking the company's focus away from low-value natural gas.
Talisman said it continued to make good progress toward its planned asset sale target of $2 billion to $3 billion.
Icahn took a stake in the struggling oil producer last month and said that he intended to discuss strategic alternatives with the management.
However, some analysts are doubtful of his ability to force dramatic changes.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Operates 8 Offshore Rigs
- Strong Upstream Performance from European Majors (Jul 28)
- PETRONAS, PetroVietnam Extend PM3CAA PSC in Malaysia-Vietnam Waters to 2027 (May 10)
- Repsol Significantly Scales Back Upstream Investment (Oct 15)