Canada's petroleum industry scored a major financial rebound in 1993.
The industry total profits jumped to $1.6 billion, compared with a loss of $1.3 billion in 1992, Ottawa reports.
Figures released by the federal government's Petroleum Monitoring Agency (PMA) show the petroleum industry's internal cash flow increased by more than $2 billion, or 23%, over 1992 to $10.7 billion in 1993.
The PMA survey is based on data from 160 companies responsible for about 90% of Canadian industry revenues.
The report also said:
- Total capital spending rose 31 % to $10.4 billion in 1993, the highest level since 1985. Upstream spending increased 38% over 1992 to $7.8 billion.
- Rate of return on equity improved from a negative 3.4% in 1992 to a positive 4.4% in 1993. Rate of return on capital employed was 3.6% in 1993, up from 0.2% but below the 3.9% for other nonfinancial industries in Canada.
- Spending for in-house research and development in 1993 was $170 million, up 7% from 1992.
Increased prices and strong natural gas sales and higher than forecast oil prices were factors in the improved financial performance in 1993.
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