EnCana shatters profit record
The new champion of Canadian corporate profits is EnCana, after the energy firm on Thursday reported a $6.5-billion profit for 2006. Canada's largest independent energy company overcame a fourth-quarter slump to eclipse the previous best full-year performance in Canadian history - $5.46B - set by industrial conglomerate BCE at the height of the tech boom in 1999. "We achieved all this in a tough operating environment for the industry marked by record-breaking activity levels," ceo Randy Eresman said. Eresman described 2006 as a "challenging year" in which the company's results were "mixed." Even so, the company's profits are noteworthy. Laid end to end, it's enough dollar bills to circle the Earth 22 times or make three one-way trips to the moon. EnCana's profits exceeded the gross domestic product of countries such as Fiji and Mongolia. The record results come at an awkward time, with the provincial government poised to announce a royalty review panel today meant to ensure Albertans are getting their full share of resource revenues. EnCana's stunning results could spark a backlash of public perception of rich oil companies - especially in light of the fact that Canada's five large integrated oil companies earlier reported profits topping $12B for 2006. But EnCana spokesman Alan Boras said the reality isn't as "sexy" as many might assume. Excluding hedging gains, the company made about the same as it did in 2005, he explained. Gerry Protti, EnCana's vp of corporate relations, said the province's proposed royalty review is an appropriate way to set the record straight. "We think it's important to have this review to clear the air," Protti said. EnCana credited one-time items, including some US$1.37B in after-tax hedging gains, for fuelling the positive results. In addition, it doubled its quarterly dividend to 20 cents a share. In stark contrast to the full year, fourth-quarter profits fell about 72% to $663 million, or 82 cents a share, from $2.36B the year before, reflecting lower natural gas prices in the latter part of the year. Analysts said the results generally met or exceeded expectations.
(Calgary Herald 070216)
Mmmm....fat oil and gas profit coffer bonuses....yum....
2 comments:
Actually, for its size, I don't hate dealing with EnCana, unlike some of the other bastard companies I have to deal with down there.
Ah, I'm dying to go to San Antonio. Looks nice. God bless Texas.
Everyone I know that works there seems pretty content. It seems to be a good company to work for and with.
As for San Antonio, they have really big festivities that go on for Mardi Gras and Christmas. The trees would be lush and the people thick in the summer.
Riverwalk Link
Appeared that there were some good bars there too, but my sunburn was so nasty I decided to go to bed and quietly cry myself to sleep.
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