(Reuters) - Canada’s Athabasca Oil Corp (ATH.TO), which processes oil sands to produce crude, said it would cut its capital expenditure by nearly 5 percent as oil prices stay low.
The company said it would now spend C$291 million ($224 million) this year, down from its earlier estimate of C$305 million due to a reduction in planned thermal oil expenditure.
Weak prices have curbed growth in Canada’s oil sands, cutting production and discouraging investment in the world’s third-largest crude reserve.
Athabasca’s realized prices for oil fell 42.6 percent to C$59.68 per barrel in the second quarter ended June 30.
Revenue fell 39 percent to C$21.1 million.
The company produced 5,459 barrels of oil equivalent per day(boe/d), compared with 5,767 boe/d a year earlier.
Analysts have said that Athabasca will ramp up production in the second half of the year after delaying well completion in the first half to cut costs.
Athabasca’s expenses fell to C$40.6 million from C$52.8 million in the quarter.
The company’s net loss narrowed to C$29 million, or 7 Canadian cents per share, from C$56.8 million, or 14 Canadian cents, a year earlier.
Athabasca’s second-quarter cash flow, a key indicator of a company’s ability to pay for new projects and drilling, was 2 Canadian cents per share, compared with negative 5 Canadian cents per share a year earlier.
Reporting by Kanika Sikka in Bengaluru; Editing by Sriraj Kalluvila