Coniagas Battery Metals Inc. T.COS

$1 Billion of Cost Savings Achieved

[thisisriskystuf]

Highlights for the three months ended September 30, 2015:

• Results in the third quarter reflect two months of strong operations, with production averaging about 320,000 barrels per day (117,600 barrels per day net to COS) and operating expenses of approximately $30 per barrel in July and August; however, in late August, a process fire occurred in a section of piping at Syncrude's upgrader, which limited SCO shipments to minimal levels while damage was being assessed and facilities were being repaired. The incident resulted in a production impact of approximately seven million barrels (2.6 million barrels net to COS) in the quarter.
• Sales volumes averaged 86,687 barrels per day relative to the 87,787 barrels per day recorded in the third quarter of 2014.
• Operating expenses fell $7.24 per barrel, averaging $40.49 per barrel compared with the same 2014 period. The decline reflects progress on Syncrude's cost reduction initiatives, partially offset by the impact of the process fire on production volumes.
• Capital expenditures were down 62 percent to $84 million compared with the 2014 third quarter, reflecting completion of Syncrude's major projects and progress on cost reduction initiatives. The Centrifuge Tailings Management project was completed approximately $100 million ($37 million net to COS) under budget.
• Syncrude achieved more than $1 billion ($367 million net to COS) in operating and capital cost reductions in the first nine months of 2015. As a result of significant progress on cost reduction initiatives, Syncrude has increased its targeted savings for 2015 to $1.3 billion ($488 million net to COS).
• COS realized a SCO selling price of $60.20 per barrel compared with $102.58 per barrel in the same 2014 quarter.
• Cash flow from operations was $82 million ($0.17 per Share) compared with $302 million ($0.62 per Share) in the same quarter of 2014, largely reflecting a lower realized SCO selling price partially offset by lower operating costs.
• COS reported a net loss of $174 million ($0.36 per Share) for the quarter, mainly reflecting unrealized foreign exchange losses on the revaluation of U.S. dollar denominated long-term debt.
• COS declared a quarterly dividend of $0.05 per Share, payable on November 30, 2015 to shareholders of record on November 23, 2015.