Canadian Natural Resources Ltd cuts its 2016 capital expenditure on Thursday after it reported an 89 per cent fall in quarterly profit, amid a steep decline in crude prices.
Canada’s No.2 gas and oil producer estimated 2016 capital spending of $3.5 billion to $3.9 billion, from the previous range of $4.5 billion to $5 billion.
A 70 per cent stop by crude oil prices since mid-2014 has humbled a once-strong energy sector and forced it to curtail new projects, laid off staff and shrink spending.
Canadian Natural Resources also said hello expects to create between 809,000 and 868,000 barrels of oil equivalent per day in 2016, a couple of percent less than 2015 annual production volumes.
The Calgary, Alberta-based company’s net earnings fell 89 per cent to $131 million, or 12 cents per share, in the fourth quarter ended Dec. 31 from $1.20 billion, or $1.09 per share, a year earlier.
Excluding one-time items, it posted a loss of revenue of four cents per share. Revenue fell more than 36 percent to $2.79 billion.
? Thomson Reuters 2016
