CALGARY, A.B. – Reuters is reporting that Encana Corporation has posted a quarterly profit, as a huge decrease in costs helped offset the impact of low commodity prices.
Since crude oil prices have dropped since a post-recession high in June 2014, Encana has responded by slashing jobs, cutting spending and selling oil and gas assets. The efforts seem to be paying off as this morning the company said that expenses in the third quarter fell to US$600 million, compared to expenses of roughly US$3.14 billion in Q3 of 2015.
The company has also downsized operations to focus on four core North American plays: the Montney and Duvernay formations in B.C. and Alberta, and the Eagle Ford and Permian plays in the United States.
Encana posted an operating profit of 4 cents per share, in contrast to the average analyst estimate of a loss of 4 cents, according to Thomson Reuters I/B/E/S. Revenue fell 25 per cent to US$979 million, but analysts had forecast revenues of only US$718.3 million.Encana posted a net profit of US$317 million in the third quarter, compared with a loss of US$1.24 billion a year earlier.