CALGARY – Ithaca Energy Inc. (TSX:IAE) says profits dropped 33 per cent in the fourth quarter as the company was affected by higher sales costs.
The Calgary-based company said Thursday that it’s after-tax earnings fell to $13.4 million, or five cents per share, in the three months ended Dec. 31. That’s down from $17.7 million, or seven cents per share, a year earlier.
Revenue grew to $54.9 million from $34.3 million.
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Sales costs increased to $48.8 million from $17.4 million.
An increase in oil and gas sales to $54.5 million came mostly from the addition of the Cook and Broom fields, which contributed $35.8 million to revenue in the period, the company said.
Ithaca noted that average realized oil prices grew to $110.33 per barrel, up from $90.25 in the fourth quarter of 2010.
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For the year, net earnings were $35.9 million, falling from $61.9 million in 2010. Sales revenue declined to $129.1 million, from $135.1 million, as the volume of oil sales dropped.
Sales costs were also higher for the year at $95.1 million compared to $61.1 million in 2010, affected by operating costs and depletion, depreciation and amortization.
Ithaca said net export production is anticipated to be 4,200 barrels of oil per day for the first quarter, which ends on March 31.
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