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Canadian Natural Resources swings to quarterly loss on low crude prices

Published 2020-05-07, 05:45 a/m
© Reuters. Canadian Natural Resources Limited's Primrose Lake oil sands project is seen near Cold Lake, Alberta
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(Reuters) - Canadian Natural Resources Ltd (TO:CNQ) posted a quarterly loss on Thursday from a year-ago profit, hurt by a significant decline in crude oil prices caused by the COVID-19 outbreak and a price war between Saudi Arabia and Russia.

The Alberta-based oil and gas producer has said it is removing its 2020 production outlook due to the current uncertainty around the COVID-19 pandemic.

Average realized prices for crude and natural gas liquids more than halved to C$25.90 per barrel in the first quarter, before risk management.

Alberta's hopes of a rebound this year for its long-struggling oil industry have been dashed by a crash in global crude prices that has forced companies to adopt cost-cutting strategies, with Canadian Natural slashing management pay and spending budget.

Production, however, rose nearly 14% in the quarter as the company took advantage of the Alberta government's special production allowance, which permits additional oil output if it moves by rail.

© Reuters. Canadian Natural Resources Limited's Primrose Lake oil sands project is seen near Cold Lake, Alberta

The company's net loss stood at C$1.28 billion ($908.90 million), or C$1.08 per share, in the first quarter ended March 31, from a profit of C$961 million, or 80 Canadian cents per share, in the year-ago period.

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