Canadian Oil Sands more than doubles profit in Q2; CEO retires
While some in the mining sector may be struggling, Canadian Oil Sands (COS) (TSX:COS) took the opportunity on Tuesday to boast its Q2 results.
COS – the largest stake-hoder in the giant Syncrude Canada Ltd oil sands project – posted net income increases of more than double compared to Q2 2012; the company banked $219 million this quarter – $0.45 per share – up from $101 in the same period last year.
A weaker Canadian dollar and higher oil prices helped boost earnings, the report claims.
Analysts however had been expecting more – their estimates were $0.53 per share according to data obtained from Thomson Reuters by the Financial Post.
Operating expenses decreased to $43.23 per barrel in the quarter compared to last year.
Sales volume increased by 10,600 barrels per day although year-to-date sales per day were slightly weaker than in 2012.
Despite the quarterly boost, over a six-month basis the oil producer is showing a drop compared to the first half of 2012 – going from $419 million net profit in the prior year, to $396 this year.
The company also announced on Tuesday that CEO Marcel Coutu will be bidding the oil sands farewell as he heads into retirement in January. COS' market cap grew by $8 billion during Coutu's 12 year tenure. He also secured the miner's 36% interest in Syncrude, up from 21% before he arrived.
Quarterly results did not reflect well on the markets however; the oil sands producer was down 1.97% on Wednesday, trading at $19.94 a share on the Toronto exchange.