Canadian Natural Resources Ltd cuts $1 billion off spending as profit plunges 89%

Canadian Natural Resources Ltd cuts its 2016 capital expenditure on Thursday after it reported an 89 percent fall in quarterly profit, amid a steep decline in crude prices.

Canada’s No.2 oil and gas producer estimated 2016 capital spending of $3.5 billion to $3.9 billion, from a previous selection of $4.5 billion to $5 billion.

A 70 percent drop in oil prices since mid-2014 has humbled a once-strong energy sector and forced it to curtail new projects, laid off staff and shrink spending.

Canadian Natural Resources also said it expects to produce between 809,000 and 868,000 barrels of oil equivalent each day in 2016, about 2 percent less than 2015 annual production volumes.

The Calgary, Alberta-based company’s net earnings fell 89 percent to $131 million, or 12 cents per share, in the fourth quarter ended Dec. 31 from $1.20 billion, or $1.09 per share, last year.

Excluding one-time items, it posted a loss of four cents per share. Revenue fell more than 36 percent to $2.79 billion.

? Thomson Reuters 2016