Canadian Oil Sands doubles payout on strong results
Canada | Reuters.co.ca
CALGARY, Alberta (Reuters) - Canadian Oil Sands Trust, owner of the biggest stake in the Syncrude Canada oil sands operation, said on Tuesday it is doubling cash distributions after surging oil prices generated a major jump in cash flow.
Canadian Oil Sands said it will pay a quarterly distribution of C$1 a unit after third-quarter cash flow rose 126 percent to C$364 million, or C$3.96 a unit.
Net income was C$380 million, or C$4.13 a unit, up from year-earlier C$186 million, or C$2.06 a unit.
Excluding unrealized foreign exchange gains and future income tax recovery, the trust earned C$312 million, or C$3.39 a unit, up from C$113 million, or C$1.26 a unit, in the third quarter of 2004.
Canadian Oil Sands has a 35.5 percent stake in Syncrude, Canada's biggest oil sands mining and synthetic crude processing operation.
Syncrude, located north of the oil sands industry hub of Fort McMurray, Alberta, is undergoing an C$8.3 billion expansion that will boost production 40 percent to 350,000 barrels a day by the middle of next year.
"More than just a reflection of record quarterly financial results, this distribution increase indicates our confidence in the imminent completion of Syncrude's Stage 3 expansion," Canadian Oil Sands Chief Executive Marcel Coutu said in a statement.
The trust's share of synthetic crude production was 85,942 barrels a day in the quarter, down slightly from 86,635.
However, with no hedges in place, the average sales price was C$78.06 a barrel, up from year-earlier C$56.44.
Canadian Oil Sands said fourth-quarter production is projected to total 21 million barrels at Syncrude, or 7.3 million barrels net to the trust.
Its trust units jumped C$5.65, or 5 percent, to C$114.25 on the Toronto Stock Exchange before being halted.
Syncrude's other partners are Imperial Oil Ltd., Petro-Canada, ConocoPhillips, Nexen Inc., Nippon Oil Corp. unit Mocal Energy Ltd. and Murphy Oil Corp..
CALGARY, Alberta (Reuters) - Canadian Oil Sands Trust, owner of the biggest stake in the Syncrude Canada oil sands operation, said on Tuesday it is doubling cash distributions after surging oil prices generated a major jump in cash flow.
Canadian Oil Sands said it will pay a quarterly distribution of C$1 a unit after third-quarter cash flow rose 126 percent to C$364 million, or C$3.96 a unit.
Net income was C$380 million, or C$4.13 a unit, up from year-earlier C$186 million, or C$2.06 a unit.
Excluding unrealized foreign exchange gains and future income tax recovery, the trust earned C$312 million, or C$3.39 a unit, up from C$113 million, or C$1.26 a unit, in the third quarter of 2004.
Canadian Oil Sands has a 35.5 percent stake in Syncrude, Canada's biggest oil sands mining and synthetic crude processing operation.
Syncrude, located north of the oil sands industry hub of Fort McMurray, Alberta, is undergoing an C$8.3 billion expansion that will boost production 40 percent to 350,000 barrels a day by the middle of next year.
"More than just a reflection of record quarterly financial results, this distribution increase indicates our confidence in the imminent completion of Syncrude's Stage 3 expansion," Canadian Oil Sands Chief Executive Marcel Coutu said in a statement.
The trust's share of synthetic crude production was 85,942 barrels a day in the quarter, down slightly from 86,635.
However, with no hedges in place, the average sales price was C$78.06 a barrel, up from year-earlier C$56.44.
Canadian Oil Sands said fourth-quarter production is projected to total 21 million barrels at Syncrude, or 7.3 million barrels net to the trust.
Its trust units jumped C$5.65, or 5 percent, to C$114.25 on the Toronto Stock Exchange before being halted.
Syncrude's other partners are Imperial Oil Ltd., Petro-Canada, ConocoPhillips, Nexen Inc., Nippon Oil Corp. unit Mocal Energy Ltd. and Murphy Oil Corp..
posted by Marcel at 9:31 AM
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