Company News

Franco-Nevada sees 25% hit to energy revenue on falling oil

TORONTO, March 10 (Reuters) - Franco-Nevada Corp, which provides miners and oil and gas producers upfront cash in exchange for future production, expects to see a 25% hit to revenue from its energy business this year as the global downdraft in crude prices takes a toll on output and drilling activity, a company executive said on Tuesday.

Toronto-listed Franco-Nevada said it expects revenue from its energy assets of $80 million to $95 million this year, down from $115.9 million last year. The 2020 forecast assumes a U.S. oil price of $45 per barrel.

Oil prices had their biggest one-day rout since the 1991 Gulf War on Monday after Saudi Arabia and Russia signaled they would hike output. (Reporting by Jeff Lewis; Editing by Steve Orlofsky)