Nexen: Positive Q2 earnings include debt reduction, unprecedented positive cash flow

By Andrea Heisinger

New York, July 14 - Nexen Inc. announced positive second-quarter earnings in a conference call on Thursday, including debt reduction from the previous year.

Executive vice president and chief financial officer Kevin Reinhart said that Nexen's "balance sheet is stronger with significant reduction of net debt from a year ago."

Net debt was C$2.838 billion on June 30 - down from C$3.35 billion on March 31 and an even steeper reduction from the C$5.492 billion reported on June 30, 2010.

The company reported C$598 million of cash flow from operations in the second quarter, according to a press release.

Reinhart said that positive cash flow was from its Long Lake operation, adding that it was the only time this event has happened for an entire quarter.

Nexen's president and chief executive officer Marvin Romanow touched on the situation with Opti Canada Inc., which is restructuring and has filed for creditor protection.

"We welcome the recapitalization and restoration of equity," Romanow said. "I spent time with the bondholders during the project and believe they understand the process."

The global energy company is based in Calgary, Canada.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.