Canadian Natural Q3 profit tumbles

(Reuters) - Third-quarter profit at Canadian Natural Resources Ltd (CNQ.TO: Quote) fell 77 percent as oil and gas prices plunged, Canada's No. 2 independent oil explorer said on Thursday.

Canadian Natural's net income fell to C$658 million ($619.6 million), or C$1.21 per share, from C$2.84 billion, or C$5.25, a year ago.

Excluding items, profit fell 32 percent to C$658 million, or C$1.21 a share, from C$963 million, or C$1.78.

Analysts on average were looking a profit of C$1.25 per share, according to Thomson Reuters I/B/E/S.

Most Canadian oil companies have posted lower third-quarter earnings as the recession cut prices and demand for oil and natural gas.

During the quarter, benchmark oil prices averaged $68.24 a barrel, down 42 percent from a year earlier. Natural gas averaged $3.44 per million British thermal units on the New York Mercantile Exchange, down 62 percent.

Cash flow, a measure of the company's ability to pay for new projects and drilling, fell 17 percent to C$1.51 billion, or C$2.78 per share.

The company, which is ramping up output at the C$9.7 billion Horizon oil sands project in northern Alberta, said its crude oil and natural gas liquids production rose 17 percent to 359,269 barrels per day.

Canadian Natural's share closed at C$68.60 on the Toronto Stock Exchange on Wednesday. The stock has risen 8.7 percent over the past 12 months.