Canadian Oil Sands profit, cash flow show impact of Syncrude equipment failure

CALGARY – Canadian Oil Sands Ltd. (TSX:COS) says its second-quarter net income was $176 million, down nearly 20 per cent from a year earlier, while its cash flow from operations declined by 29 per cent to $240 million amid lower sales volumes.

The Calgary-based company, the largest partner in the Syncrude oilsands operation, said its sales volumes averaged 77,084 barrels per day during the three months ended June 30, down from 100,094 barrels per day in the second quarter of 2013.

The lower volume was attributed to scheduled maintenance on Coker 8-2 and unplanned down time at Coker 8-2.

COS higher selling prices, lower current taxes and a foreign exchange gain offset some of the the negative impact on net income from lower sales volumes and higher royalties paid to government.