Canadian Natural Resources Ltd CNQ-T -2.25%decrease on Thursday posted a second-quarter profit that more than halved, as lower energy prices and drop in oil production squeezed the country’s largest oil and gas producer.
Profits for oil and gas companies have declined from last year’s bumper levels after crude prices eased from multi-year highs when Russia’s invasion of Ukraine upended markets.
Benchmark Brent crude averaged $79.92 a barrel in the second quarter, nearly 28 per cent lower than last year, pressured by the banking crisis and fears of a looming recession.
U.S. natural gas prices plunged nearly 63 per cent during the same period, when demand for the commodity skyrocketed against the backdrop of Russia’s invasion of Ukraine.
Canadian Natural’s production in the quarter ended June 30 stood at 1.19 million barrels of oil equivalent per day (boepd), below last year’s 1.21 million boepd, impacted by wildfires in Western Canada and continued unplanned third-party pipeline outage, the company said.
The company reported a net income of $1.5-billion, or $1.32 per share, for the quarter, down from $3.5-billion, or $3 per share, a year earlier.
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