Q4 and full-year results out....Talisman profit hits $2.08-billion record for the year
The Canadian Press
Thursday, February 28, 2008
CALGARY — — Talisman Energy Inc. says its fourth-quarter profit rose to $656-million from a year-earlier $598-million, while full-year profit hit a record $2.08-billion — boosted by asset sales.
Earnings for the quarter ended Dec. 31 amounted to 64 cents a share, compared with 55 cents per share a year ago, the global Calgary-based company reported Thursday.
For the full year, earnings amounted to $2.01 a share — with a significant contribution from gains on asset sales— and compared with $2-billion or $1.84 a share.
At year-end, the company completed the sale of its Brae assets in the North Sea and acquired a small interest in the Tangguh LNG project in Indonesia.
“2007 was a year of contrasts for Talisman,” CEO John Manzoni said in a release.
“We are very encouraged by two exploration discoveries late in the year, higher oil prices contributed to very high North Sea netbacks and we again replaced more than 100 per cent of proved reserves. On the other hand, we suffered a number of project delays, mainly in the North Sea, natural gas prices were lower and the Canadian dollar strength offset most of the oil price increase for us.”
As a result of project delays, production was lower than the company's expectations at the start of the year.
“We expect to deliver three to eight per cent organic production growth from our streamlined asset base this year and are confident we can deliver five to 10 per cent annual growth through the medium term,” Mr. Manzoni said.
“Looking to the longer term, we have initiated a review of our entire portfolio to determine investment opportunities for growth in 2011 and beyond.”
Talisman spent $4.4 billion on exploration and development in 2007, down slightly from the previous year. But spending in North America was reduced 23 per cent, largely reflecting low natural gas prices.
Spending in Norway increased 85 per cent to $613-million, with ongoing project developments and increased drilling. The company increased capital spending in the United Kingdom by five per cent, to $1.3-billion.
Spending in Southeast Asia increased 55 per cent with northern fields development and exploration drilling in Vietnam.
“Dry hole costs were up in 2007, totalling $684-million,” the company said. “Talisman has taken a cautious view of previous exploration costs in Alaska. However, we are continuing the exploration program and currently shooting the planned seismic program.”
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