Reuters Focus - Talisman annual meeting becomes propaganda forum
By Dann Rogers
CALGARY, May 4 (Reuters) - Talisman Energy Inc. (TLM.TO - news) reported a 32 percent drop in first-quarter net income on Tuesday, citing lower oil prices and output along with a drop in gains from property sales.
Profit at the Calgary-based company, one of Canada's biggest international oil explorers, declined in the first three months of the year to C$4 million, or 3 Canadian cents a share, from C$5.9 million, or 5 Canadian cents a share.
Cash flow, a key indicator of an oil company's ability to finance future projects, rose 12 percent to C$185.6 million, or C$1.56 a share, from C$165.1 million or C$1.51, in the first three months of 1998. Revenue climbed to C$404.2 million from C$402.3 million.
''With oil prices recovering from record lows and Talisman's successful growth strategy intact, 1999 is now looking like it will be a great year,'' President and Chief Executive Jim Buckee said.
Oil production in the period fell to a daily average of 141,086 barrels from 153,063 and the price received per barrel sold by Talisman declined to C$15.68 from C$17.86.
Natural gas output climbed to an average of 898 million cubic feet daily from 762 million in the first quarter of 1998. The average price received per thousand cubic feet of gas sold rose to C$2.54 from C$2.28.
Buckee said he expects 1999 oil production to rise to a daily average of 152,000 barrels for the whole year, from 147,000 barrels in 1998. Gas output is expected to climb to a daily average of 850 million cubic feet from 748 million cubic feet for all of 1998.
Gains from the sale of properties fell to C$11 million in the first quarter of 1999 from C$21.7 million in the year-earlier period.
Capital expenditures in the period rose to C$294.2 million from C$263.2 million, partly as a result of Talisman's acquisition last autumn of Arakis Energy Corp. and its southern Sudan concession.
The company's annual meeting on Tuesday was marked by a demonstration held by about 40 Sudanese nationals and others protesting the company's involvement in Sudan and for alleged indirect support of the African nation's Islamist government.
The protesters said oil revenues from the $1.4 billion Sudan Petroleum Project would be used by the government to fund its military efforts against various groups opposed to its rule in a 16-year-old civil war.
But Buckee said after the general meeting that threats of violence would not derail the company's ambitions in Sudan. "We have intelligence gathering systems and security forces working for us. For the moment, we believe our people and operations are safe.
''History has said development is beneficial,'' Buckee told reporters. ''Propogating the status quo in Sudan will get us nowhere.''
Talisman Energy is the largest independent Canadian oil and gas producer. It has operations in the North Sea, Indonesia, Sudan and Canada. It is also exploring for oil and gas in Algeria and Trinidad.
Its stock closed down 30 Canadian cents to C$38.50 in Toronto on Tuesday.
($1=$1.45 Canadian)
biz.yahoo.com |
