August 1, 2012 / 9:29 AM / 5 years ago

Talisman Energy Q2 profit falls 72 pct

Aug 1 (Reuters) - Talisman Energy Inc, the fifth largest Canadian independent oil producer, posted a 72 percent fall in second-quarter profit, hurt by factors including weaker commodity prices as well as higher operating expenses.

Talisman, which last week sold a 49 percent interest in its North Sea assets to Sinopec Corp for $1.5 billion, earned $196 million, or 19 cents a share, down from year-earlier $698 million, or 68 cents a share.

Cash flow, an indicator of a company’s ability to fund development, fell 10 percent to $803 million, or 78 cents a share, from $897 million, or 88 cents a share, a year ago.

Talisman has been mentioned as a possible next target in the aftermath of CNOOC Ltd’s $15.1 billion friendly bid for Nexen Inc, which like Talisman has a large Canadian asset base but even more extensive international holdings. Its share price has also been under pressure.

The company has said it is not operating under the assumption that it will be taken over, and is seeking to boost value for shareholders by increasing returns from its own assets.

In the second quarter, production averaged 435,000 barrels of oil equivalent a day (boe/d), up 4 percent due to increased oil and gas volumes in Southeast Asia and from North American shale.

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