EARNINGS / Syncrude Q2 Results
SYNCRUDE REPORTS EXCELLENT FIRST HALF OPERATING RESULTS
FORT MCMURRAY, ALBERTA, July 31 /CNW/ - Syncrude Canada reports
exceptional operating results for the second quarter. Shipments of Syncrude
Sweet Blend crude oil totaled 21.4 million barrels or over 235,000 barrels per
day. Shipments of Syncrude Sweet Blend crude oil for the same period in 1997
totaled 15.4 million barrels or an average of 169,000 barrels per day. The
second quarter set a new shipment record for the oil sands operator.
Second Quarter Operating Results
Total unit cost of production for the quarter, which includes G & A,
research and financing, was $12.04 per barrel ($Cdn), compared to $20.32 per
barrel for the same period (a maintenance turnaround quarter) in 1997.
Production costs for the quarter were $11.32 per barrel, compared to $19.44
per barrel in 1997. In 1998, the annual maintenance turnaround was in January
and February, while in 1997 it occurred in the second quarter.
June 1998 shipments averaged 250,000 barrels per day, at a total unit
cost of $12.21 per barrel, setting a new monthly shipment record.
Total expense for the second quarter was $258 million in 1998, compared
to $313 million in 1997. The difference is largely accounted for by the
maintenance turn-around. Operating expenditures were $242 million, $58 million
less than in 1997.
First Half Operating Results
Total shipments for the first half of 1998 were 37.2 million barrels, 4.4
million barrels ahead of the 1997 shipment rate. Total unit cost of production
for the first six months was $556 million in 1998 or $14.94 per barrel,
compared to $558 million or $17.03 per barrel in 1997. Total unit costs for
the year are forecast to come in at $13.60 ($Cdn) per barrel.
Capital Expenditures
Capital expenditures for the quarter totaled $125 million, compared to
$118 million in 1997. Year-to-date capital expenditures are $209 million,
compared to $186 million in 1997. During the quarter, the Syncrude Owners
approved the over-$900 million appropriation for the first production train of
the Aurora Mine and the second stage debottleneck of the Upgrader. A total of
$525 million in capital expenditures is planned for 1998.
Chairman's Remarks
''Operating results for the second quarter were outstanding and our cost
performance was also excellent. We are working to reduce expenditures where
practical during this period of low oil prices,'' said Eric Newell, chairman
and chief executive officer.
''Progress on our strategic projects, such as the Aurora Mine, Upgrader
Debottleneck and development engineering for the Upgrader Expansion continues
to be excellent and on-schedule. Given low oil prices, we are prudently
managing our capital expenditures, in a way that is consistent with achieving
our schedule of a mid-year 2000 start-up of the Aurora project.
''From an operations perspective, Mining and Extraction are doing a great
job in matching bitumen supply to Upgrading's conversion requirements. Our
environmental performance was also excellent.
''Looking ahead, there is the potential to have a good second half of the
year. Our highest priority is to maintain a safe and reliable operation, at
high production rates through to December year-end, and to maintain our
expenditure containment efforts. In the meantime, we have reduced our year-end
production target to 77.5 million barrels, from 80 million, because of our
decision to take an additional coker maintenance turn-around.''
Joint Venture Ownership
Syncrude Canada is a joint venture owned by AEC Oil Sands, L.P., AEC Oil
Sands Limited Partnership, Athabasca Oil Sands Investments Inc., Canadian Oil
Sands Investments Inc., Canadian Occidental Petroleum Ltd., Gulf Canada
Resources Ltd., Imperial Oil Resources, Mocal Energy Ltd., Murphy Oil Company
Ltd., and Petro-Canada.
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SYNCRUDE SECOND QUARTER OPERATING RESULTS
For the 3 months ending June 30 1998 1997
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Shipments of Syncrude Sweet Blend
millions of barrels 21.4 15.4
thousands of barrels per day 235 169
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Operating expenditures
millions of $Cdn 242 299
production unit costs ($Cdn/barrel) 11.32 19.44
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G&A/research/financing
millions of $Cdn 16 14
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Total expense
millions of $Cdn 258 313
total unit costs ($Cdn/barrel) 12.04 20.32
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Capital expenditures
millions of $Cdn 125 118
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For the 6 months ending June 30 1998 1997
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Shipments of Syncrude Sweet Blend
millions of barrels 37.2 32.8
thousands of barrels per day 206 181
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Operating expenditures
millions of $Cdn 525 533
production unit costs ($Cdn/barrel) 14.09 16.24
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G&A/research/financing
millions of $Cdn 31 26
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Total expense
millions of $Cdn 556 559
total unit costs ($Cdn/barrel) 14.94 17.03
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Capital expenditures
millions of $Cdn 209 186
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>>
NOTE: Visit our web site at syncrude.com for more information
about Syncrude as well as downloadable photographs of the operation located in
the Library area of the site. The site also contains an archive of 1997 and
1998 news releases.
TRADING SYMBOLS FOR SYNCRUDE PUBLIC OWNERS
------------------------------------------
AEC Oil Sands, L.P.: TSE-AEC/NYSE-AOG
Athabasca Oil Sands Investments Inc.: TSE-AOS.UN
Canadian Occidental Petroleum Ltd.: TSE/ASE/MSE-CXY
Canadian Oil Sands Investments Inc.: TSE-CO.UN
Gulf Canada Resources Ltd.: TSE/NYSE-GOU
Imperial Oil Resources: TSE/ASE-IMO
Petro-Canada: TSE-PCA/NYSE-PCZ
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For more information: Peter Marshall, (403) 790-6348 |
