By the OGJ Online Staff
HOUSTON, July 25 -- Petro-Canada, Calgary, achieved best-ever second quarter earnings this year, in part because of a reduction in tax rates in Ontario and Alberta.
Net earnings in the second quarter were $326 million (Can.), up from second quarter 2000 net earnings of $259 million. Second quarter results for 2001 benefited from $55 million in tax adjustments.
Petro-Canada added that second quarter 2000 net earnings included a $66 million gain on asset sales.
"The business environment remained very favorable in the second quarter, contributing to the excellent performance of both our upstream and downstream businesses," said President and CEO Ron Brenneman. "We achieved strong natural gas volume performance despite gas plant turnarounds, and made steady progress on the Terra Nova and MacKay River oil developments."
In the second quarter of 2001, production of oil, gas, and gas liquids was 188,400 boe/d, down from 211,900 boe/d in the second quarter of 2000.
Over the past year, Petro-Canada sold several assets and that caused the drop in production from last year.
Petro-Canada said that in the first 6 months, its share of Hibernia field production off Canada's East Coast was 28,000 b/d, vs. 30,000 b/d in 2000. Production will remain flat the rest of the year "due to limitations arising from gas handling capability."
It said, "Development plans have been modified to increase gas reinjection capacity which will allow for higher production next year."
The company said engineering and contracting is under way for development of White Rose field, also off the East Coast.
Petro-Canada said downstream, strong margins and wide light-heavy crude price differentials contributed to good performance in the second quarter. Refinery utilization was lower at 93% due to a power outage and longer than planned maintenance at the 120,000-b/d Edmonton refinery.
