Canadian Natural Resources sidesteps winter hit to post profit surge

TORONTO: Canadian Natural Resources Ltd surpassed quarterly profit estimates on Thursday and raised its dividend as the oil and gas producer sidestepped a hit from harsh winter to cash in on surging crude prices.

Icy temperatures in December and early this year hit mining operations in western Canadian oil sands, the largest source of crude in the country, hurting production at companies such as Imperial Oil Ltd and Suncor Energy Inc.

Yet Alberta-based Canadian Natural’s output jumped 9% to 1.31 million barrels of oil equivalent per day in the fourth quarter, allowing it to take advantage of a more than 50% rise in crude prices last year.

Oil prices have continued the rally this year, with global benchmark Brent crude rising above $110 a barrel in recent weeks after Russia’s invasion of Ukraine stoked fresh supply concerns.

Canadian Natural’s average realized price for oil soared 79.5% to C$72.81 in the quarter to Dec. 31. Brent crude averaged $80 a barrel during the period.

That pushed up adjusted profit to C$2.63 billion ($2.08 billion), from C$176 million a year earlier. Per-share profit of $2.21 was higher than analysts’ expectations of C$2.14, according to Refinitiv data.

The company, one of the country’s largest oil and gas producers in the country, raised its quarterly dividend by 28% to C$0.75 per share.