Pengrowth Energy posts $91.1 million net loss in fourth quarter, cites disposals

CALGARY – Pengrowth Energy Corp. (TSX:PGF) posted a $316.9-million net loss last year, mostly because of non-cash losses related to asset sales and risk management.

The loss amounted to 61 cents per share for the year compared with a profit of $12.7 million or three cents per share in 2012.

Oil and gas sales totalled $1.59 billion, up from $1.46 billion the year earlier.

Pengrowth’s adjusted loss for the year $183.8 million for the year compared with an adjusted loss of $89.7 million in 2012.

For the fourth quarter, Pengrowth reported a loss of $91.1 million or 17 cents per share. That compared with a loss of $1 million or zero cents per share in the last quarter of 2012.

Nevertheless, Pengrowth says it produced more oil and gas last year than it expected, kept capital spending below budget and ended the year with the cash and resources to complete the first phase of its Lindbergh thermal oilsands project by the end of this year.

Derek Evans, President and CEO of Pengrowth, said 2013 was a landmark year for Pengrowth, which ended the year with $450 million of cash and an improved capital efficiency in its non-thermal business.

“We disposed of approximately $1 billion of non-core assets to fully fund the first commercial phase of the Lindbergh project, received regulatory approval and began construction of the first phase in August,” Evans said.

“In 2014, our primary objectives will be to get Lindbergh on stream, on time and on budget, maintain our current dividend, while protecting our balance sheet and continuing to invest efficiently in our non-thermal oil properties.”

Pengrowth’s average daily production in the fourth quarter was the equivalent of 77,371 barrels of oil and full-year production averaged 84,527 barrels per day.

Pengrowth estimates its 2014 average daily production will be between 71,000 and 73,000 barrels per day — about seven per cent less than in the fourth quarter.

Its estimated 2014 funds flow from operations is between 95 cents and $1.05 per Pengrowth share, compared with $1.08 per share last year and $1.20 per share in 2012.