UPDATE 1-CNRL swings to quarterly loss, cuts spending again

(Adds quotes, details from earnings release)
By Nia Williams
CALGARY, Alberta, Aug 6 (Reuters) - Canadian Natural
Resources Ltd CNQ.TO , the country's largest independent
petroleum producer, swung to a loss in the second quarter as low
global oil prices continued to bite and the Canadian province of
Alberta raised its corporate tax rate.
The company, which operates in Western Canada, the North Sea
and offshore West Africa, also said on Thursday it has made
further cuts to its 2015 spending plans to help cope with the
nearly 60 percent plunge in oil prices in the past year.
CNRL reduced its latest capital budget by C$245 million
($186.11 million) to C$5.5 billion, with cuts planned across all
major areas of the business. Since last November, when CNRL
originally announced a 2015 capital budget of C$8.6 billion, the
company has slashed spending plans three times, by C$3.1 billion
in total.
The company joins a slew of other Canadian energy producers
that have been forced to clamp down on spending and defer new
projects as low crude prices persist.
CNRL reported a net loss of C$405 million, or 37 Canadian
cents per share, for the quarter, compared with a profit of
C$1.07 billion, or 97 Canadian cents, a year earlier.
It said the loss was primarily the result of a C$579 million
charge related to Alberta's increased corporate tax rate, and
said higher taxes could dampen investment going forward.
"This charge effectively translates into lower future cash
flows and therefore, lowers reinvestment in the business," said
Corey Bieber, CNRL's chief financial officer.
CNRL reported stronger-than-expected adjusted profit of 16
Canadian cents per share as a result of reduced operating
expenses. Analysts, on average, had expected 10 Canadian cents,
according to Thomson Reuters I/B/E/S.
Operating costs at the 131,000 barrel per day Horizon oil
sands project in northern Alberta decreased to C$30-$33 a barrel
from C$31-34 a barrel.
Second-quarter production averaged 805,500 barrels of oil
equivalent per day, down marginally from the 817,471 boepd
produced in the same quarter a year earlier.
The company said cash flow, a key indicator of its ability
to pay for new projects and drilling, fell about 43 percent to
C$1.5 billion.
CNRL shares were last up 7 cents at C$32.41 on the Toronto
Stock Exchange.
($1=$1.32 Canadian)