Talisman Energy Posts Surprise Loss

July 29, 2014

World Energy Reports LLC.

Talisman Energy Inc, Canada's fifth-largest independent petroleum producer, reported a surprise loss, hurt by lower gas prices in North America and higher royalty payments on production.

The company, which was approached by Spain's Repsol SA last week for talks over a potential deal, said higher operating costs in the United Kingdom and Norway also weighed on netbacks.

Netbacks is revenue a company gets from the sale of hydrocarbons, minus costs of getting the fuel to the market.

Total netbacks fell to $27.18 per barrel of oil equivalent (boe) in the second quarter ended June 30 from $28.44 per boe in the first quarter.

The company reported a net loss of $237 million, or 23 cents per share, compared with a net profit of $97 million, or 9 cents per share, a year earlier.

The loss included a $171 million charge related mainly to hedging losses, Talisman said.

Excluding items, the loss was 1 cent per share, while analysts on average had expected an operating profit of 4 cents per share, according to Thomson Reuters I/B/E/S.

Total production increased 4 percent to 375,000 barrels of oil equivalent per day.

Total revenue rose 4.4 percent to $1.24 billion, but total expenses jumped 47.4 percent to $1.4 billion.

Talisman, which is trying to restructure debt and firm up its flagging stock price, confirmed last week that "it has been approached by Repsol with regards to various transactions" but offered no further details.

The Calgary, Alberta-based company's stock has declined about 5 percent on the Toronto Stock Exchange through Monday's close of C$11.72.

Reporting by Scott Haggett and Sneha Banerjee

Floating Production Week delivers unrivaled overview, insight and analysis to the Offshore Floating Production Systems and Technology market

Floating Production Systems Report And Online Database

  • Monthly reports -- Our monthly reports provide a detailed snapshot of the business sector as of the middle of each month. More than 80 pages of data and industry analysis each month. Excel spreadsheets with each report enable subscribers to tailor the data presentation to their needs. In October of each year we provide a detailed five year forecast of production floater orders. In March of each year we fine tune the forecast and make revisions as needed.
  • Online database -- The online database is updated every day – with information direct from primary sources. In the database are details for 240 planned projects, 370 installations in service, 70+ floaters on order and 20+ floaters available. The database is fully searchable. Customized charts and spreadsheets can be directly produced from the database.
  • Customer support -- We are available to assist with technical questions about information in the database and reports -- and assist with any questions about using the database search tools.

Here's what you get!

Request a Free Sample Report
Related company: » Talisman Energy Inc