Talisman Reports 23% Fall in Q2 Net Income

Canadian oil company Talisman Energy has reported net income of C$426 million in the second quarter of 2008, down 23% from a year earlier, largely due to gains on asset sales in 2007, increased charges for stock-based compensation and mark-to-market losses on derivative contracts during the quarter.

Talisman’s earnings from continuing operations were C$846 million, up 167%, compared to the second quarter in 2007, largely driven by higher commodity prices.

Production averaged 432,000 barrels of oil equivalent (boe/d), 4% below the second quarter of 2007, mainly due to the sale of non-core assets, but 3% above the previous quarter.

Production from continuing operations averaged 425,000boe/d, 3% above the same quarter of 2008 and 3% higher than the previous quarter. Netbacks were up 63% from a year earlier, reaching a record $61.33 per boe.

John Manzoni, president and CEO of Talisman Energy, said: “This was a very successful quarter, highlighted by exceptional cash flow generation. We generated a record $1.7 billion in cash flow, an increase of 37% over the first quarter of 2008, on the back of a 29% increase in prices over the past three months.”