Encana steps in US$1.6B worth of red ink
by The Canadian Press
Encana posts second quarter loss, revenue falls from year ago
CALGARY—Encana Corp. reported a loss in its latest quarter as its U.S. operations were hit by a big impairment charge related to the drop in commodity prices.
The company, which keeps its books in U.S. dollars, says its loss attributable to shareholders totalled US$1.61 billion or $1.91 per share for the quarter ended June 30.
That compared with a profit of $271 million or 37 cents per share a year ago.
Revenue fell to $830 million from $1.59 billion.
The loss for the quarter included an after-tax $1.33-billion impairment charge as well as a $187-million after-tax hit related to an unrealized hedging loss.
On an operating basis, Encana says it lost $167 million or 20 cents per share for the quarter compared with an operating profit of $171 million or 23 cents per share a year ago.
