(RTTNews) - Diversified upstream oil and gas company Talisman Energy Inc. (TLM.TO: News ,TLM: News ) reported Tuesday a sharp fall in third-quarter profit, reflecting significantly lower oil and gas prices as well as prior year hedging gains. Separately, Talisman said it added 170,000 net acres in Pennsylvania Marcellus and the Montney shales through a combination of acquisitions and swaps for C$570 million.

The Calgary, Canada-based company's net income for the quarter plunged to C$30 million or C$0.03 per share from C$1.42 billion or C$1.38 per share in the previous year. The company noted that the prior year results have been restated to reflect the results of discontinued operations.

Net income from continuing operations was C$13 million or C$0.01 per share, compared to a net income of C$1.34 billion or C$1.30 per share in the same quarter last year. Excluding certain non-operational items, earnings from continuing operations were C$155 million, compared to C$654 million in the prior year quarter.

Prior-year quarter included gains on held-for-trading financial instruments of C$567 million and stock-based recovery of C$297 million.

Total revenue for the quarter significantly dropped to C$1.54 billion from C$2.66 billion in the year earlier. Region-wise, North America reported revenues of C$413 million, up from C$888 million a year ago. Total revenue from the U.K. fell to C$489 million from C$967 million in the prior year. Scandinavia revenues decreased to C$224 million from C$348 million in the year earlier. Southeast Asia posted revenues of C$366 million, lower than C$438 million in the preceding year.

John Manzoni, president and chief executive officer said, "As part of our program to accelerate the transition into unconventional gas we are restructuring our North American organization into separate Conventional and Shale divisions, recognizing the different strategic objectives and different business models for each."
Total expenses for the quarter surged to C$1.37 billion from C$519 million last year.

Production for the quarter was 401 mboe/d, down 9%, from 443 mboe/d in the same quarter last year. Production of oil and liquids declined to 192,293 bbls/d from 231,420 bbls/d a year earlier. Natural gas production was 1,253 mmcf/d, compared to 1,268 mmcf/d in the prior year.

For the quarter, production in North America averaged about 163,000 boe/d, down 11% from the prior-year period. Production from continuing operations in the UK averaged nearly 74,000 boe/d during the quarter, down 33% from last year. Production from continuing operations in Scandinavia averaged by 36,000 boe/d during the quarter, up 6% over the previous year. Production in Southeast Asia increased 22% from last year and averaged averaged 114,000 boe/d. According to the company, production is expected to increase in the fourth quarter.

Looking ahead, the company now expects overall production for the year to average between 423,000 - 426,000 boe/d.

To receive FREE breaking news email alerts for Talisman Energy Inc. and others in your portfolio

 1   2   Next Page