Pengrowth Energy's profit falls on weak natural gas prices

Fri Aug 10, 2012 5:58pm EDT

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Aug 10 (Reuters) - Oil and natural gas producer Pengrowth Energy Corp posted a 65 percent fall in second-quarter profit on weak natural gas prices.

Net income fell to C$31.1 million, or 8 Canadian cents per share, from C$88.5 million, or 27 Canadian cents per share, a year earlier.

Sales fell 8 percent to C$328.4 million.

Average natural gas prices have fallen 46 percent in the second quarter from a year earlier to $2.4 per million British thermal units.

Pengrowth Energy owns reserves in the provinces of Alberta, British Columbia, Saskatchewan and Nova Scotia.

The company's average production rose 11 percent to 78,870 barrels of oil equivalent per day (boepd) for the quarter.

Pengrowth expects output to touch 96,000 to 100,000 boepd in the fourth quarter.

In March, the company acquired NAL Energy Corp for about C$1.30 billion, providing a boost to its production.

Shares of the company, which has a market value of about C$3.40 billion, closed at C$6.75 on Friday on the Toronto Stock Exchange.

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