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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Kerm Yerman who wrote (11874)	7/25/1998 2:20:00 AM
From: Kerm Yerman	Respond to of 15196

Financial Post / Canadian Occidental Petroleum Blames Loss On Low Prices The Financial Post July 25, 1998 Canadian Occidental Petroleum Ltd.'s second-quarter results were written in red ink because of low oil prices, the company said Friday. The Calgary-based firm lost $15 million (11› a share) for the three months ended June 30, a sharp reversal from a year earlier when it had a profit of $20 million (15›). Despite increased oil and natural gas production, quarterly cash flow fell to $143 million ($1.05), from $193 million ($1.42). Sales slipped 9% to $361 million. Canada was the trouble spot for the company, which also works in Yemen, the U.S., South America and Britain. It lost $33 million on Canadian operations in the second quarter and $65 million in the half. For the first half, Canoxy lost $19 million (14›), compared with a profit of $93 million (68›) in 1997. Cash flow fell 28% to $296 million ($2.16), while sales skidded 6% to $716 million. The producer averaged $16.01 a barrel for its oil in the first six months, a 34% decline from a year ago. Production of oil and gas liquids rose almost 18% to average 194,300 barrels a day. Canoxy sold non-core Canadian oil and gas assets for $60 million in the half and expects to raise $40 million in the same way next quarter. The proceeds will be used to reduce debt, which was $2.32 billion on June 30. The poor results are not a surprise, given low world oil prices, said John Tysall, an analyst with Standard & Poor's Inc. in Toronto. Canoxy's debt is high, but there are no plans to review its ratings. Yemen, which accounts for more than half of cash flow and oil production, remains the star property, he said. "I think the outlook in Yemen is even more positive than what the company believed 18 months ago." The shares (CXY/TSE) finished at $27.35 on Friday, down 35›.