At the helm: John Manzoni
Talisman bottom line dips 2%
Canada's Talisman Energy saw its first-quarter profit fall 2% as gains on asset sales were offset by lower realised prices, higher depletion, depreciation and amortisation (DD&A) and dry hole costs.
Net income dropped to C$455 million, or 45 Canadian cents a share, from C$466 million (US$372.7 million), or 45 Canadian cents a share, in the first quarter of 2008.
The company, which operates in North America, Europe, southeast Asia and elsewhere, said DD&A expense was C$733 million, compared with C$507 million a year ago.
Talisman said the increase was mainly from downward reserve revisions as a result of lower oil prices, increased production and capital expenditure.
Earnings from continuing operations, which exclude most one-time items, fell 29% to C$303 million, or 30 Canadian cents a share, from C$429 million, or 42 Canadian cents, a year earlier.
Analysts on average expected earnings of 18 Canadian cents a share, according to Reuters Estimates.
Cash flow rose 6% to C$1.31 billion, or C$1.29 a share, from C$1.23 billion, or C$1.21, in the year-prior quarter.
Production averaged 450,000 barrels of oil equivalent per day, up 7% from last year.
"As usual, production in the second and third quarters will be lower due to maintenance shutdowns," chief executive John Manzoni said in a statement.
The company's shares, which have risen nearly 11% over the last month, closed at C$14.35 Tuesday on the Toronto Stock Exchange.