July 26 MEG Energy Corp, a Canadian oil
sands company, reported a 70 percent fall in quarterly operating
profit on lower bitumen prices.
The realized price for each barrel of bitumen fell 27
percent to C$45.59 in the second quarter, MEG Energy said. The
average U.S. benchmark crude price dipped 9 percent in the
quarter compared to a year earlier.
Second-quarter operating earnings fell to C$11.1 million, or
6 Canadian cents per share, from C$36.5 million, or 18 Canadian
cents per share, a year earlier.
Including a foreign exchange charge of C$34.9 million on the
translation of its U.S. dollar denominated debt, net loss was
C$29.5 million ($28.94 million), or 15 Canadian cents per share.
Production at the company, whose key operations are in the
southern Athabasca oil sands region of Alberta, rose 9 percent
to an average of 30,429 barrels of bitumen per day.
Cash flow from operations, a key indicator of its ability to
pay for new projects, fell 32 percent to C$60 million.
Shares of MEG, which has a market value of $7.45 billion,
closed at C$38.91 on Wednesday on the Toronto Stock Exchange.