Canadian Petroleum Company Reports 2nd-Quarter Profit
CALGARY, Canada (AP) _ Dome Petroleum Ltd. on Friday reported second-quarter earnings of $1.5 million (U.S.), its first quarterly profit since the third quarter of 1983.
In the second quarter of 1984, the company reported a $45 million loss.
Revenue was $419.1 million, up 3 percent over $409.2 million in the same period of 1984.
″This quarter’s results reflect the solid progress Dome has been making this year toward financial health,″ said J. Howard MacDonald, chairman and chief executive officer of the company. ″However, given the uncertain outlook for oil prices, foreign exchange and interest rates, we don’t believe our second-quarter results are necessarily indicative of the performance to be expected in the future.″
He attributed the second-quarter earnings improvement to a significant reduction in foreign exchange losses, higher net gains on the disposal of assets, continued reduction in overhead expense, and reduced interest and financing expense.
In the first half, Dome lost $15.5 million on revenue of $854.4 million, compared with a net loss of $74.6 million on revenue of $877.3 million in the first six months of 1984.
The company said its long-term debt dipped below $4.4 billion - at current exchange rates - for the first time since 1981.
In March of that year Dome merged with Hudson Bay Oil and Gas Co. Ltd., incurring a long-term debt of more than $6 billion (Canadian).
″At that time we were planning to float equity, but we never got around to it,″ said company spokesman B. David McAsey. The reason was that the market for Canadian oil securities soured, he added.
″We ended up with a large amount of bank debt due at the end of that year, and came up with a debt rescheduling plan that was finally approved in April 1984,″ he said.