Encana Reports Q2 Loss In Net Earnings

By 250 News

Prince George, B.C. -  In releasing its financial results for the second quarter of 2010, Encana Corporation is reporting a $505-million dollar loss in net earnings.

President and Chief Executive Officer, Randy Eresman, says Encana's first quarter 2010 net earnings were $1.48-billion dollars, nearly $2-billion higher than the period ending June 30th.

He says the second quarter was impacted by unrealized foreign exchange and hedging.  The Q2 results include unrealized after-tax losses on commodity hedging and non-operating foreign exchange of $340-million dollars and $246-million respectively.

"We are reporting a loss in second quarter net earnings as a consequence of mark-to-market accounting, despite the fact that our price hedges - covering about 60-percent of our production - were almost 50-percent higher than benchmark natural gas prices and our natural gas production is about 10-percent more than one year ago," says Eresman.

"That's why we believe cash flow and operating earnings are a far better measure of Encana's financial performance."  Cash flow was $1.2-billion dollars and operating earnings were $81-million.

Encana points to its recently announced MOU with Chinese National Petroleum Corporation as one of its strategic developments this year.

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