Spanish oil major Repsol SA is considering putting some of its Canadian assets for sale later this year as it looks to reap the benefits of higher oil and gas prices, four sources told Reuters on Monday.
Repsol is seeking buyers for its holdings in the Duvernay basin, in western Canada, which are still in early development stages, according to its website. The company’s 170,000 acres (688 square kilometers) in the Duvernay could fetch about C$750 million ($589.9 million), according to an industry source.
The move by Repsol follows several global oil majors which have rushed to sell assets in the No. 4 oil-producing country over the past four years over concerns ranging from high production costs and emissions to scarcity of capital for fossil fuel projects. Imperial Oil Ltd, whose majority owner is U.S. oil producer Exxon Mobil Corp, marketed its Canadian joint venture last month while Japan’s JAPEX sold its stake in the Hangingstone oil sands project last year and Abu Dhabi’s TAQA hired advisors to sell all of its Canadian oil and gas producing assets
Repsol also owns assets in Alberta’s Greater Edson and Chauvin basins, along with gas- and power-related infrastructure. Repsol has not made a final decision on any of the assets, the sources cautioned, adding that among the options it could consider are partial sell-downs or joint ventures.
Repsol, whose total annual Canadian production was 57,800 barrels of oil equivalent per day in 2019, could still choose to retain the assets as is, they said.
The sources requested anonymity as the discussions are confidential. A Repsol representative said the company does not comment on market speculation.
Repsol bolstered its Canadian business with the $8 billion purchase of Talisman Energy in 2015. Four years later, with oil prices languishing, Repsol cut 30% of its Canadian staff as part of a global restructuring.
After the coronavirus pandemic pushed U.S. crude prices into negative territory for the first time ever in 2020, and investors applied greater pressure for fossil fuels companies to transition to cleaner energy, Repsol unveiled a five-year plan to cut upstream spending and boost low-carbon investments.
North American crude hit $90 per barrel last week, notching seven-year highs, spurring asset sellers to look to cash in. The strong recovery has also encouraged Repsol to make natural gas purchases in areas considered more profitable.
The Spanish company in January bought U.S. gas producer Rockdale Marcellus, and has been eyeing additional purchases in the U.S. Eagle Ford basin, two sources familiar with transactions in the country told Reuters.
($1 = 1.2714 Canadian dollars)
(Reporting by Shariq Khan in Bengaluru and Rod Nickel in Winnipeg; Editing by Denny Thomas and Marguerita Choy)
TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.
The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.
The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.
The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.
Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.
Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.
This report by The Canadian Press was first published Nov. 6, 2024.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
