Shell Canada Limited announced first-quarter earnings of $354 million or $1.29 per Common Share compared to earnings of $168 million or 58 cents per share for the first quarter of 2000. This improvement is mainly the result of significantly higher natural gas prices in Resources and increased refining margins in Oil Products.
Cash flow from operations for the first three months of 2001 was $489 million, up from $231 million for the same period in 2000. First-quarter capital and exploration expenditures were $371 million compared to $152 million for the same period last year. Spending in the first quarter of 2001 included $287 million on the Athabasca Oil Sands project compared to $96 million in the same period last year.
"Exceptional market conditions and a strong operating performance allowed us to achieve record quarterly operating results," said Tim Faithfull, President and Chief Executive Officer, Shell Canada Limited. "Production from the Sable Offshore Energy project continues to grow and work on the Athabasca Oil Sands project is progressing on schedule
Petro-Canada Record Quarterly Operating Earnings
Petro-Canada announced its best-ever quarterly operating earnings. Earnings from operations for the quarter were $327 million ($1.22 per share) up from $148 million ($0.54 per share) before a reorganization charge of $33 million ($0.12 per share) after tax in the first quarter of 2000. The improvement in operating earnings is due to higher oil and gas prices, improved downstream margins and strong volume performance across the company. Cash flow was $629 million ($2.34 per share), up from $340 million ($1.25 per share) before the reorganization charge a year earlier.
Net earnings were $358 million ($1.33 per share), including an after tax gain of $31 million on disposition of certain assets, up from net earnings of $19 million ($0.07 per share), including a net $96 million ($0.35 per share) after tax provision for losses on disposal of non-core assets, in the same period last year.
"We continued to see very good operational performance from our business units," said President and Chief Executive Officer Ron Brenneman. "Natural gas sales were particularly strong and Downstream sales volumes were up significantly."