Talisman profit falls 33 percent on lower production

MONTREAL, Nov 1 (Reuters) - Talisman Energy Inc (TLM.TO: Quote, Profile, Research, Stock Buzz) said on Thursday its third-quarter profit fell 33 percent on lower production volumes, asset sales and other factors, including non-cash charges.

Canada's No. 3 oil exploration firm said net income for the quarter was C$352 million or 35 Canadian cents a share, down from C$524 million, or 48 Canadian cents a share, a year earlier.

Talisman's earnings from continuing operations, which removes most one-time gains and charges, fell to C$246 million, or 24 Canadian cents a share, from C$350 million, or 32 Canadian cents.

The operating results lagged the 38 Canadian cent per share consensus forecast from analysts polled by Reuters Estimates.

Revenue rose to C$2 billion from C$1.8 billion.

John Manzoni, president and chief executive, said the quarter should be the low point for Talisman's underlying production.

"With a heavy capital program through this year, we have suffered from a number of delays, which are also impacting the fourth quarter somewhat," he said.

"We will now begin to see the benefits of projects coming on line in the third and fourth quarters, including higher production volumes and lower unit costs," he added.

Fourth-quarter volumes are also expected to increase, particularly in the North Sea, with a full quarter of production from the Blane and Duart fields and commissioning of the Wood and Tweedsmuir Phase B facilities. That will be partly offset by the sale of the Brae properties, Manzoni said.