Canadian oil and gas firm Edge Resources today reported an “excellent” record third quarter performance despite a net loss of £147million for the first nine months of the year.
The Alberta and Saskatchewan regions focused company reported a £100million increase in turnover to £2.6 billion for the first three quarters of the year.
Turnover for Q3 was up £430 million to £1.2billion compared with £770million for the same period in 2012. This was against a net loss of £128million compared with £1.4billion previously.
During the quarter, average oil production increased to 283 barrels a day from 248 previously, while natural gas production continued to decline as a result of natural declines.
“We have enjoyed another excellent, record quarter,” said chief executive Brad Nichol.
“Unquestionably, the entire industry was buoyed by a year-on-year improvement in oil pricing. However, in the face of an improving top line number, we simultaneously reduced our general and administrative, operating and transportation costs which resulted in a huge increase in the cash we were able to generate from our operations.”
The company’s “industry-leading” profit-to-investment ratio at 3.5x versus the industry average of 1.5x had allowed it to generate signficicantly more cash from its properties than other operators, he said.
“Our ability to generate cash at these levels is an outstanding quality in today’s industry, which should allow Edge to continue to grow and utilise internally-generated cash flow.”
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