Canadian Natural Resources Limited - President, Tim McKay
President, Tim McKay
Source: Globe and Mail
  • Canadian Natural Resources Ltd (TSX:CNQ) generated C$5.4 billion in 2019, more than double the $2.6 billion the company reported in the previous year
  • As a result, the company has raised the quarterly dividend by 13 per cent to $0.425 per share
  • Despite these results, the company is reducing its 2020 expenditure by $100 million due to the volatile crude oil market
  • However, the company does not expect this to impact oil and gas production in 2020
  • Canadian Natural Resources Ltd (TSX:CNQ) was down 1.9 per cent, with shares trading for $32.49 and a market cap of $38 billion

One of Canada’s largest oil and gas producers, Canadian Natural Resources Ltd (TSX:CNQ) more than doubled its net earnings in 2019.

The company generated C$5.4 billion in 2019, compared to $2.6 billion in the previous year.

In line with this increase, the company has raised the quarterly dividend by 13 per cent to $0.425 per share. This is the 20th consecutive year the company has increased the dividend.

Surprisingly, however, the company’s daily barrels of equivalent oil only increased 1.9 percent, not reflecting the large increase in earnings.

Expenditures were up to $7.1 billion, over $2 billion more than in 2018. However, this is largely attributable to CNR’s acquisition of another oil and gas company, Devon Canada Corporation, earlier in the year.

CNR spent almost $3.8 billion purchasing Devon Canada. Ignoring this one-off cost, expenditures were down more than a billion on the previous year.

Tim McKay President of CNR is pleased with the strong results.

“In 2019, we demonstrated that Canadian Natural is truly a unique, sustainable and robust company.

“Our unparalleled asset base underpinned by our long life low decline assets combined with our E&P assets generated record adjusted funds flow,” he said

Despite these figures, ongoing economic uncertainty stemming from the COVID-19 outbreak continues to impact the crude oil price. As a result, the company is reducing its Oil Sands budget by 100 million in 2020.

The company originally announced the budget last December, and was therefore unable to forecast the outbreak’s recent impacts.

As a result of the global economic downturn, CNR’s share price has dropped more than 15 per cent in the last month. The company was quick to point out that the decreased budget is not expected to affect production.

Canadian Natural Resources Ltd (TSX:CNQ) was down 1.90 per cent, with shares trading for $32.49 at 2:41pm EST.

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