The Canadian Press
March 5, 2009 at 6:23 AM EST
CALGARY — — Talisman Energy Inc. [TLM-T] said Thursday it managed to book strong profits for both the final quarter and full fiscal year of 2008, despite plunging commodity prices that marked the final months of the year.
The Calgary-based oil and gas company reported net earnings of $1.2-billion, or $1.18 per share, for the quarter ended Dec. 31, 2008, up sharply from a year-earlier profit of $656-million, or 64 cents per share.
Talisman's quarterly cash flow jumped to $1.6-billion from $1-billion reported during the same period in 2007.
The increases came despite a drop in oil and gas production, which fell to an average of 432,000 barrels of oil equivalent per day from the 446,000 barrels being produced a year earlier.
Talisman Energy
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Talisman said it benefited from the high oil prices that prevailed throughout much of the year, reporting a 69 per cent surge in 2008 profit to $3.5-billion, or $3.46 per share, from year-earlier net earnings of $2-billion, or $2.01 per share.
The company said oil and gas prices, coupled with a $365-million gain on commodity derivatives, helped push full-year cash flow up to $6.2-billion from $4.3-billion reported the year before.
Average production fell to 432,000 barrels a day from a 2007 average of 452,000 barrels.
Talisman also said it paid down $935-million in long-term debt for the year, bringing net debt down to $3.9-billion.
“2008 was a year of change for Talisman,” chief executive John Manzoni said in a statement.
“We set the company in a new strategic direction and realigned major parts of the organization in support of the new strategy. We've also successfully navigated a very dynamic economic environment, posting record financial results despite the collapse in oil and natural gas prices in the fourth quarter.”
Talisman, a Calgary-based energy company with operations around the world, has been paring down its portfolio in order to focus on a few key strategic areas: the U.K. North Sea, North American unconventional natural gas and Southeast Asia.
On Wednesday Talisman announced a $720-million deal to sell assets in Saskatchewan's Bakken oil play to Tristar Oil and Gas Ltd. and Crescent Point Energy Trust.