Talisman Energy Inc. (TLM, TLM.TO) Wednesday reported a fourth-quarter net loss, compared to a profit last year, primarily due to the absence of last year's gain related to financial instruments that were held for trading.
For the fourth quarter, Talisman reported a loss of C$111 million or $0.11 per share, in comparison with a net income of C$1.202 billion or C$1.17 per share last year. The prior-year results have been restated.
The company reported a net loss from continuing operations of C$190 million or C$0.19 per share in the latest period, compared to income of C$1.162 billion or C$1.13 per share last year.
Excluding unrealized loss on financial instruments, stock-based compensation expense and restructuring charges as well as certain future tax rate changes and charge, earnings from continuing operations plunged to C$76 million or C$0.07 per share from C$502 million or C$0.49 per share in the prior year.
Net income from discontinued operations rose to C$79 million from C$40 million in the prior year.
On average, four analysts polled by Thomson Reuters expected the company to earn US$0.07 per share for the quarter.
The company's net income for the third quarter was C$30 million or C$0.03 per share.
Total revenue for the quarter increased to C$1.825 billion from C$1.773 billion in the prior year with net sales rising to C$1.799 billion from last year's C$1.748 billion. The company's third-quarter revenues were C$1.54 billion.
Total expenses increased to C$1.887 billion from last year's C$492 million, as the previous year's results included a C$1.695 billion gain related to financial instruments that were held for trading.
Cash flow in the fourth quarter was dropped 41% to C$921 million, owing to lower commodity prices.
Total production slipped to 423,000 boe/d from 432,000 boe/d. Total oil and liquids production dropped to 203,000 bbls/d from 227,000 bbls/d and total natural gas production grew to 1,320 mmcf/d from 1,228 mmcf/d.
Netback was C$31.90/boe for the just concluded quarter, compared to C$25.97/boe last year. Oil and liquids netback increased to C$44.68/bbl from C$25.40/bbl, while Natural gas netback slipped to C$3.35/mcf from C$4.46/ mcf in the prior year.
For the full year, net income slumped to C$437 million or C$0.43 per share from C$3.519 billion or C$3.40 per share last year. Revenues decreased to C$6.488 billion from C$9.358 billion in the previous year. Analysts expected earnings of US$0.64 per share in 2009.
In 2009, production from continuing operations increased 2% to 413,000 boe/d. Total production averaged 425,000 boe/d, down 2% due to asset sales. Netback fell to C$27.72/boe from C$47.33 /boe.
According to John Manzoni, president and CEO of the company, "With lower oil and natural gas prices brought on by the economic downturn, we saw netbacks fall by over 40% in 2009, and these lower commodity prices had a substantial impact on our financial results."
TLM closed Tuesday's regular trade at US$16.89, down from the previous close of US$16.90, on 6.74 million shares.
TLM.TO settled on the TSX Tuesday at C$18.00, lower than the previous close of C$18.17, on 3.95 million shares.
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