As per globe article on fire...... Ryan Kubik, Canadian Oil Sands’ chief executive, at the end of July said the company’s cash flow would be strong enough to cover its capital expenses. While the fire may derail this prediction, the Calgary-based company on Saturday said it “maintains” $1.65-billion (U.S.) of combined property and business-interruption insurance, with a $9-million deductible for repairs for damaged plants and equipment.
FirstEnergy Capital analyst Michael Dunn said he “would guess” repairs will be wrapped up in “a matter of days or weeks, not months,” with Canadian Oil Sands’ insurance mitigating some of the financial damage.
“However this news is likely to be negative for the stock, as, if this outage goes on for weeks, this may be shaping up as yet another year of production disappointment at Syncrude,” he said in a note Monday.
Canadian Oil Sands at the end of July predicted Syncrude will produce between 96 million and 107 million barrels in 2015, compared to its previous expectation of between 95 million and 110 million barrels. The revision came after an unplanned outage at one of its cokers.