MEG Energy's loss widens as Canadian dollar falls

Thu Feb 6, 2014 6:24am EST

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Feb 6 (Reuters) - Canadian oil sands producer MEG Energy Corp slipped deeper into the red in the fourth quarter due to an unrealized foreign exchange loss on the conversion of its U.S. dollar-denominated debt as the Canadian dollar weakened.

The company said its net loss widened to C$148.2 million, or 67 Canadian cents per share, in the quarter ended Dec. 31 from C$18.7 million, or 9 Canadian cents, a year earlier.

MEG, whose key operations are in the southern Athabasca oil sands region of Alberta, said it ended 2013 with net debt of C$2.90 billion.

The Canadian dollar was worth about 94 U.S. cents at the end of the fourth quarter. The currency finished 2012 at around par with the U.S. dollar.

MEG reported an operating loss of C$32.7 million, or 15 Canadian cents per share. The company broke even on a per-share basis a year earlier.

The company said its bitumen production rose 31 percent to an average 42,251 barrels per day in the fourth quarter.

MEG's shares closed at C$30.03 on the Toronto Stock Exchange on Wednesday.

The stock fell 14.6 percent in the 12 months to Wednesday, lagging the Toronto Stock Exchange 300 Composite Index , which rose 6.4 percent.

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