October 28, 2010 / 11:49 AM / 8 years ago

UPDATE 1-Nexen Q3 profit jumps on asset sales

* Production rev up 12 pct

Oct 28 (Reuters) - Nexen Inc NXY.TO NXY.N posted a four-fold jump in quarterly profit, helped by sales of its non-core assets in Canada and the United States, and said it plans to generate about C$1.5 billion in asset sales in the next 12 months.

Nexen, Canada’s No.5 independent oil producer, said it would complete the disposition program over the next 12 months, which includes the sale of its interest in Canexus Income Fund CUS_u.TO.

In the current quarter, the company said it completed the sale of its heavy oil properties in Western Canada for about C$975 million, net of closing adjustments.

The company also said annual production is expected to be well within its range of between 230,000-280,000 barrels of oil equivalent per day.

Nexen posted a third-quarter profit of C$534 million, or C$1.02 a share, up from C$122 million, or 23 Canadian cents a share, a year earlier.

Production revenue, before royalties, rose 12 percent to C$239 million.

Cash flow, an indicator of its ability to fund growth plans, rose to C$485 million, or 92 Canadian cents a share, from C$379 million, or 73 Canadian cents a share last year.

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The Calgary, Alberta-based company’s shares, which have lost 3 percent in value since reporting second quarter results in July, closed at C$21.62 Wednesday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Vyas Mohan)

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