Third quarter will not maintain pace set in Q2: Canadian Oil Sands Trust CEO
Tuesday, August 3, 2010 at 02:58PM Canadian Oil Sands Trust reports Q2 profit of $237M, up from $46M a year ago
CALGARY - Canadian Oil Sands Trust reported a sharp jump in second-quarter earnings Thursday on increased production at the Syncrude oil sands project and lower operating costs.
The trust said it earned $237 million, or 49 cents per unit, compared with $46 million or 10 cents per unit a year ago.
Revenue for the quarter was $842 million, up from $467 million.
Sales averaged 118,569 barrels of oil a day, up from 75,553 barrels per day a year ago, while operating costs fell to $31.18 a barrel compared with $50.23 per barrel in the second quarter of 2009.
However Canadian Oil Sands president and chief executive Marcel Coutu warned production would not maintain the pace set in the quarter.
"We were expecting these robust rates to continue into the third quarter, however, unplanned outages, particularly recent outages in the upgrader during July," Coutu said in a statement.
The trust cut its 2010 annual production outlook by five million barrels for Syncrude to 110 million barrels.
"While these outages have all been remedied, the resulting production impact illustrates why the current focus on reliability is paramount and key to achieving design capacity of 350,000 barrels per day," Coutu said.
Canadian Oil Sands Trust (TSX:COS) has a 37 per cent stake in the Syncrude Canada Ltd. partnership, which runs the world's biggest oilsands mining project.
Other partners include Imperial Oil Ltd. (TSX:IMO) with a 25 per cent stake Suncor Energy Inc. with a 12 per cent, Nexen Inc. with seven per cent and Murphy Oil Co. and Mocal Energy Ltd. each with five per cent.
Chinese state-owned firm Sinopec bought a nine per cent stake in Syncrude from Houston-based ConocoPhillips earlier this year.
Last month, Syncrude was found guilty under wildlife laws of causing the deaths of 1,600 ducks in a 12-square-kilometre tailings pond at its oilsands mine in northern Alberta in 2008.
Tailings ponds hold the waste left behind from the oilsands extraction process, which contains residual bitumen, water, sand and clay.
From The Canadian Press
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