Canadian Natural Resources barrels ahead with oilsands expansion

CALGARY -- Canadian Natural Resources Ltd. (TSX:CNQ) says it's committing $2 billion of this year's capital budget to advancing its Horizon project and then expects the oilsand operation's funding requirements to drop in 2017 and thereafter.

See Full Article

The Calgary-based company views Horizon as a key part of its future business plan, as it depends less on conventional sources of oil and gas.

The full 2016 capital budget, including spending on Horizon Phases 2B and 3, has been set at between $3.5 billion and $3.9 billion.

CNRL says the Horizon expansion budget will drop to $1 billion in 2017 and to zero in 2018, after Phase 3 starts production in next year's fourth quarter.

The budget projection was contained in CNRL's latest financial report, which showed it eked out a small profit in the fourth quarter but ended 2015 with a full-year net loss of $637 million or 58 cents per share.

The three months ended Dec. 31 showed $131 million of net income or 12 cents per share, which was an improvement over the third quarter but down from nearly $1.2 billion or $1.09 per share in the fourth quarter of 2014.

The fourth quarter of 2015 included $181 million of favourable tax items and, without them CNRL would have had a loss.

Revenue dropped to $2.8 billion from $4.4 billion in the fourth quarter of 2014, but gains from the sale of properties increased to $690 million from $137 million.

After adjustments to exclude certain items, CNRL's operations lost $49 million or four cents per share in the fourth quarter and cash flow from operations dropped to $1.38 billion or $1.26 per share.

The company says the weakening of the Canadian dollar provided some buffer from the collapse of oil and gas prices that began in late 2014, since global commodity prices are in U.S. currency that's translated for the company's financial reports.

In the comparable period of 2014, Canadian Natural had $756 million of adjusted earnings from operations or 69 cents per share and cash flow from operations was $2.37 billion or $2.16 per share.

"Canadian Natural currently has in place sufficient liquidity to ensure the funding of all targeted activities in 2016 and 2017," CNRL chief financial officer said in a statement.

"By the fourth quarter of 2016, annualized cash flow will then be in a position to cover all base annual capital and current annualized dividend requirements."



Advertisements

Latest Economic News

  • Taiwanese iPhone assembler Foxconn may invest $7B in U.S. plant

    Economic CTV News
    Foxconn, a major assembler of iPhones and other electronics, may invest $7 billion in a plant for manufacturing display panels that would create as many as 50,000 jobs in the U.S. Foxconn CEO Terry Gou discussed the potential expansion Sunday during a company meeting in Taiwan, the company's home country. Source
  • B.C. aims for diversified economy, as jobs targets missed on mines and LNG

    Economic CTV News
    VICTORIA -- Premier Christy Clark says her government's retooled jobs plan aims to make British Columbia the most diversified economy in Canada. The premier admitted during a five-year update on her jobs plan that the government missed previous targets for students, on growth in mines and for the liquefied natural gas industry. Source
  • Vancouver's housing market third most expensive in the world: survey

    Economic CTV News
    VANCOUVER -- An annual international survey rates Vancouver as the third least affordable housing market on the planet and it also has a warning about Toronto housing. The 2017 Demographia International Housing Affordability Survey gives Vancouver a rating of 11.8, meaning median home prices are 11.8 times higher than median household income. Source
  • Documents reveal concerns, effects of CPP benefit limits for widows and widowers

    Economic CTV News
    OTTAWA -- Sheila was 62 when her husband died. For three years she continued to work full time as a nurse, collecting survivor benefits under the Canada Pension Plan. When Sheila retired at age 65 and began collecting her CPP retirement pension, she bumped into the financial ceiling the government places on the amounts retirees can receive under the public pension scheme and the survivor pension disappeared. Source
  • Canada should distance itself from Mexico in NAFTA talks: Former U.S. ambassador

    Economic CTV News
    Canada should distance itself from Mexico as U.S. President Donald Trump seeks to abolish or renegotiate the three-nation North American Free Trade Agreement (NAFTA), according to a former Canadian ambassador to the U.S. Derek Burney, who helped negotiate the Canada-United States Free Trade Agreement under then-Prime Minister Brian Mulroney, believes Canada and Mexico’s trade agendas share little common ground. Source
  • Striking Chronicle Herald workers mark one-year anniversary of labour dispute

    Economic CTV News
    HALIFAX -- The union representing striking workers at the Halifax Chronicle Herald are holding rallies throughout Nova Scotia Monday to mark the one-year anniversary of the labour dispute. The Halifax Typographical Union, which went on strike last Jan. Source
  • Why Trump will find it hard to make American economy greater

    Economic CTV News
    WASHINGTON -- President Donald Trump's economic plans are nothing if not ambitious: Annual growth of 4 per cent -- or more. A diminished trade gap. The creation of 25 million jobs over 10 years, including the return of good-paying factory positions. Source
  • Lawsuit: Donald Trump businesses violate U.S. Constitution

    Economic CTV News
    NEW YORK -- A lawsuit Monday alleged that U.S. President Donald Trump is violating the Constitution by allowing his business to accept payments from foreign governments. Trump is violating the so-called emoluments clause in the Constitution that prohibits him from receiving money from diplomats for stays at his hotels or foreign governments for leases of office space in his buildings, according to the suit filed by a legal watchdog group. Source
  • Brookfield moves to simplify North American property arm

    Economic CTV News
    TORONTO -- The largest shareholder of Brookfield Canada Office Properties (TSX:BOX.UN) is offering to buy the rest of the real estate trust's equity for $30.10 cash per unit, a 14.8 per cent premium to Friday's closing price in Toronto. Source
  • Donald Trump signs executive order officially pulling U.S. out of TPP

    Economic CBC News
    The new U.S. president doubled down on some of his campaign promises on Monday, including punitive tax hikes for U.S. companies that ship jobs overseas and sharp reductions in corporate taxes, red tape and regulations. Source