COS dividend up to 40 cents!
Canadian Oil Sands Trust announces 2007 first quarter results and a quarterly distribution
increase to $0.40 per Trust unit
Calgary, Alberta (April 25, 2007) – Canadian Oil Sands Trust (“Canadian Oil Sands” or the “Trust” or “we”)
(TSX - COS.UN) today announced first quarter 2007 results and a 33 per cent increase in the Trust’s
quarterly distribution to $0.40 per Trust unit (“Unit”) for Unitholders of record on May 8, 2007, payable on
May 31, 2007. Net income in the first quarter of 2007 increased to $262 million, or $0.55 per Unit, from
$91 million, or $0.20 per Unit, during the previous year’s same period. First quarter 2007 cash from
operating activities was $202 million, or $0.42 per Unit, compared to $187 million, or $0.40 per Unit, in
2006. Non-cash operating working capital requirements, primarily a result of higher accounts receivable,
reduced first quarter 2007 cash from operating activities by $94 million.
Net income and cash from operating activities reflect higher revenues as a result of incremental Stage 3
production, less turnaround and maintenance activity compared to the prior year, and a larger Syncrude
working interest. As well, net income and cash from operating activities benefited from a 41 per cent
reduction in per barrel operating costs quarter-over-quarter, offset somewhat by a higher Crown royalty
expense.
Crown royalties increased to $9.58 per barrel in 2007 from $0.67 per barrel in 2006 with the shift to the
higher royalty rate of 25 per cent of net revenues from the minimum one per cent of gross revenue, which
occurred in the second quarter of 2006. In the first quarter of 2007 Syncrude paid royalties totaling $256
million to the Province of Alberta. The Syncrude project began paying the higher rate at roughly the same
time as the Stage 3 expansion was completed as a result of robust crude oil prices, which increased
revenues from the base plant and accelerated project payout.
“Reflecting our constructive view of our free cash flow over the next several quarters and our intention to
move to fuller payout of that free cash flow, we are very pleased to announce our third distribution
increase since our Stage 3 project funding began to diminish,” said Marcel Coutu, President and Chief
Executive Officer. “Reduced capital spending, growing volumes from our recently expanded facilities and
a renewed focus on costs and operational reliability are cornerstones of our current operation. These form
the foundation upon which our next growth stages will be launched.” |
