Encana posts profit again as new CEO revamps businesses
(Reuters) - Encana Corp (ECA.TO: Quote), Canada's largest natural gas producer, reported a second straight quarterly net profit, and lowered its capital spending forecast as a part of its push to restructure operations under new Chief Executive Doug Suttles.
The company said it now expected capital spending to be between $2.7 billion and $2.9 billion this year, down from $3.0 billion to $3.2 billion.
Encana is restructuring its operations as prices for natural gas are expected to remain low due to abundant shale gas production.
Suttles, a former BP Plc (BP.L: Quote) executive appointed as chief executive in June, has already begun making changes, promising last month to cut dry gas production and revamp Encana's businesses to cope with weak cash flow.
The company's cash flow, a key measure of its ability to pay for new projects and drilling, fell 28 percent to $660 million, or 20 cents per share, in the third quarter.
Encana, however, said it expected full-year cash flow to be near the high end of its current forecast range of $1.5 billion to $2 billion.
The company reported a net profit of $188 million, or 25 cents per share, for the third quarter ended September 30. It had reported a net loss of $1.24 billion a year earlier.
Excluding most one-time items, the company posted operating income of $150 million, or 20 cents per share. Analysts on average had expected 17 cents per share, according to Thomson Reuters I/B/E/S.
Encana's oil and natural gas liquids volumes in the quarter nearly doubled to average about 58,200 barrels-per-day. Daily natural gas production averaged 2.7 billion cubic feet.
(Reporting by Sayantani Ghosh in Bangalore and Scott Haggett in Calgary; Editing by Kirti Pandey)
© Thomson Reuters 2017 All rights reserved.