Canadian Oil Sands Trust Q2 earnings plummet 91%
Carrie Tait, Financial Post
Tuesday, July 28, 2009
Despite the pain, the company increased its quarterly dividend to 25¢ a share from 15¢. Further, it suspended its premium distribution, distribution reinvestment and optional unit purchase plan -- both signs the Calgarybased company feels its fortunes are changing. Dave Olecko/Bloomberg News Despite the pain, the company increased its quarterly dividend to 25¢ a share from 15¢. Further, it suspended its premium distribution, distribution reinvestment and optional unit purchase plan -- ...
Canadian Oil Sands Trust, which owns 36.7% of Syncrude, made $46-million, or 10¢ a share, in the second quarter, down 91% from $497-million ($1.04) in the same period last year. Cash from operating activities also plummeted.
"The decreases in cash from operating activities and net income on a quarter and year-over-year basis reflect lower crude oil prices and lower production, partially offset by a decrease in Crown royalties expense," Canadian Oil Sands said in a statement. "Net income in 2009 also reflects unrealized foreign exchange gains on U. S. dollar denominated debt and higher future income tax recoveries than the first half of 2008."
Despite the pain, the company increased its quarterly dividend to 25¢ a share from 15¢. Further, it suspended its premium distribution, distribution reinvestment and optional unit purchase plan -- both signs the Calgarybased company feels its fortunes are changing.
"The DRIP was active during the first half of 2009, but with the strengthening of crude oil prices and the improvement in the trust's liquidity position, the trust no longer felt it was needed," the company said in its statement.
http://www.financialpost.com/news-sectors/energy/story.html?id=1834754
