Talisman Energy loss widens after $1.37 billion in charges
(Reuters) - Canada's Talisman Energy Inc TLM.TO TLM.N, which in December agreed to be bought by Spanish peer Repsol (REP.MC: Quote), reported a bigger quarterly loss after it wrote down the value of some assets by about $1.37 billion amid a steep fall in crude prices.
A 50 percent fall in oil prices LCOc1 since June has dented the value of a number of fields, prompting companies such as Britain's BG Group BG.L and BP Plc (BP.L: Quote) to write down their assets by billions of dollars.
Talisman, Canada's No.5 independent oil and gas producer, said it wrote down the value of its Eagle Ford assets in Texas by $614 million in the fourth quarter ended Dec. 31. The company wrote off an investment in the Kurdistan region of Iraq.
The company also took impairment charges related to assets in the North Sea and in the Equion field in Colombia.
Calgary, Alberta-based Talisman said it recorded a loss of $996 million on joint ventures such as Talisman Sinopec Energy UK (TSEUK), which operates oil and gas fields in the North Sea.
Talisman said last month it would cut 300 jobs at TSEUK due to falling production and rising operating costs.
Revenue slumped 95 percent to $44 million in the quarter mainly due to losses from the joint ventures.
The company's net loss widened to $1.59 billion, or $1.54 per share, in the fourth quarter, from $1.01 billion, or 98 cents per share, a year earlier.
Excluding the impairment charges and other one-time items, Talisman's adjusted loss was 14 cents per share, according to Thomson Reuters I/B/E/S, much bigger than analysts' average estimate of 3 cents. Continued...