Penn West Petroleum Ltd. (TSE:PWT), an oil and gas company operating in Western Canada, said loss widened in the fourth quarter as revenue tumbled and the company recorded an impairment charge.
Net loss expanded to C$728 million, or C$1.49 a share, in the three months ended Dec. 31, from a net loss of C$78 million, or 16 cents a share, in the year-earlier period, the Calgary, Alberta–based company said in a statement today.
The October–December quarter included $742-million of asset impairment charges related to property, plant and equipment, or PP&E. These charges were resulted from non-core natural gas assets and lower reserve recoveries in the company's Manitoba properties.
Revenue declined 23 percent to C$613 million in the fourth quarter, from C$799 million a year earlier.
Analysts were calling for a per-share loss of 6 cents on revenue of C$657.5 million.
Penn West's total production slumped 19 percent to 123,995 barrels of oil equivalent per day, or boe/d, from 153,931 boe/d a year earlier.
Funds flow from operations sank 27 percent to C$216 million, or 44 cents a share, mainly because of lower crude oil prices and lower production volumes as a result of asset dispositions in the fourth quarter.
The board declared a first-quarter dividend of 14 Canadian cents per share to be paid on April 15, to shareholders of record at the close of business on March 31.
Looking ahead, the company said it remains "conservative" in its commodity outlook for the remainder of the year.
"Operating excellence and investment discipline will continue to be key organic levers while we progress through phase two of our asset divestiture strategy and deliver a laser focused portfolio and improve our balance sheet," it said.
Penn West shares closed down 1.4 percent to C$7.92 in Toronto yesterday. The stock has retreated 13 percent in the past 12 months, leaving the company with a market value of C$4.27 billion.
Reported by Proactive Investors 3 hours ago.
Net loss expanded to C$728 million, or C$1.49 a share, in the three months ended Dec. 31, from a net loss of C$78 million, or 16 cents a share, in the year-earlier period, the Calgary, Alberta–based company said in a statement today.
The October–December quarter included $742-million of asset impairment charges related to property, plant and equipment, or PP&E. These charges were resulted from non-core natural gas assets and lower reserve recoveries in the company's Manitoba properties.
Revenue declined 23 percent to C$613 million in the fourth quarter, from C$799 million a year earlier.
Analysts were calling for a per-share loss of 6 cents on revenue of C$657.5 million.
Penn West's total production slumped 19 percent to 123,995 barrels of oil equivalent per day, or boe/d, from 153,931 boe/d a year earlier.
Funds flow from operations sank 27 percent to C$216 million, or 44 cents a share, mainly because of lower crude oil prices and lower production volumes as a result of asset dispositions in the fourth quarter.
The board declared a first-quarter dividend of 14 Canadian cents per share to be paid on April 15, to shareholders of record at the close of business on March 31.
Looking ahead, the company said it remains "conservative" in its commodity outlook for the remainder of the year.
"Operating excellence and investment discipline will continue to be key organic levers while we progress through phase two of our asset divestiture strategy and deliver a laser focused portfolio and improve our balance sheet," it said.
Penn West shares closed down 1.4 percent to C$7.92 in Toronto yesterday. The stock has retreated 13 percent in the past 12 months, leaving the company with a market value of C$4.27 billion.
Reported by Proactive Investors 3 hours ago.