Canadian Natural Resources Ltd. (NYSE: CNQ) posted a better-than-expected quarterly profit, helped by higher production, and the country’s No. 2 oil and gas producer raised its dividend.
The company, which slashed its 2015 capital budget by 28% and postponed a heavy oil project in January, said on Thursday it had trimmed the budget further by CA$150 million (US$120.74 million) to CA$6.04 billion as oil prices stay weak. Canadian Natural Resources also said its management committee has agreed to a 10% salary cut, effective March 1. Its board too agreed to cut its annual cash retainer by 10%.
Canadian Natural produced 860,920 barrels of oil equivalent per day in the fourth quarter ended Dec. 31, up 27% from a year earlier.
The company’s net earnings nearly tripled to CA$1.20 billion, or CA$1.09 Canadian cents per share. Excluding items, Canadian Natural Resources earned 69 Canadian cents per share, above the average analyst estimate of 67 Canadian cents, according to Thomson Reuters I/B/E/S.
The company’s cash flow, a key indicator of its ability to pay for its planned projects, jumped nearly a third to CA$2.37 billion, or CA$2.16 per share.
Canadian Natural raised its quarterly cash dividend to 23 Canadian cents per share from 22.5 Canadian cents, payable on April 1.
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