Talisman Energy said yesterday it was on track to meet its cash-flow targets for 2013 despite first-quarter losses of £137million.
The Canadian oil and gas firm, which sold 49% of its North Sea business to Chinese national Sinopec last year for £956million, has been offloading non-core assets.
Talisman said cash flow in the quarter was £332million, down 23% from the previous three months, largely as a result of lost production since the Sinopec deal and higher royalties in Asia.
After adjusting for the North Sea divestment, the firm said this quarter’s production remained stable at 372,000 barrels of oil equivalent per day. It expects to meet its 2013 cash-flow guidance, based on growth in higher-margin production, in the second half.
Chief executive Hal Kvisle said: “We are more focused, having completed the sale of a 49% equity interest in our UK business. Nearly 90% of our assets are now in the Americas and Asia-Pacific core regions.”
Geoff Holmes, CEO of the Talisman Sinopec joint venture, added: “Talisman Sinopec Energy remains committed to investing in our assets, increasing production from existing reservoirs and continuing to extend the life of our operations.”
Talisman Sinopec has interests in 46 North Sea fields and operates 11 offshore installations and an oil terminal at Flotta, Orkney.