Canadian Natural Resources reports a 89% decline in quarterly profits
Net earnings declined to $131 million, down from $1.2 billion the previous year/quarter. The company reduced planned capital expenditures to $3.5-3.9 billion.
Horizon production averaged 122,911 bbl/day last year, up 11% from 2014 levels:
- Operating costs at the oil sands mining facility were down 23% to $28.61/bbl
- The company remains on track to start-up Horizon Phase 2B by the end of the year
- Phase 3 will start up at the end of 2017 and is expected to come in $1B under budget
- Horizon's capital budget drops to zero in 2018 as the project reaches its full nameplate capacity of 250,000 bbl/day
- Operating costs are expected to decline to $25/bbl once Phase 3 is completed.
Production from its thermal in-situ business rose to 129,835 bbl/day, a 20% increase y/y. Operating costs declined 17% to $10.43/bbl.