PrairieSky Royalty Ltd. is reporting a 67 per cent drop in net earnings on sharply lower oil and gas prices in the first quarter.
The Calgary-based company earns royalty revenue from oil and gas producers who drill on lands on which it holds the mineral rights.
It says it earned $8.6 million or four cents per share on revenue of $52.7 million in the three months ended March 31, compared with net earnings of $26.4 million on revenue of $73.2 million in the year-earlier period.
Analysts had expected earnings of $16 million or six cents per share, according to financial markets data firm Refinitiv.
Its production was little changed at 22,160 barrels of oil equivalent per day but its average realized price for oil, natural gas and liquids fell to C$24.35 per boe from $33.58.
During the quarter, PrairieSky reported 170 wells were begun on its lands, down from 209 wells in the same quarter of 2019.
PrairieSky announced in March it would cut its dividend by almost 70 per cent to 24 cents per year from 78 cents.
Watch below: Some Global News videos about Canada’s oil industry.