Talisman reported a $27 million loss from operations, or three cents per share, in the quarter — down from a year earlier profit of $71 million or seven cents per share.
Analysts polled by Thomson Reuters had recently lowered their estimates for Talisman to less than a cent per share of adjusted earnings.
The Calgary-based company’s net income — which is less influential with analysts — was $97 million in the second quarter, or nine cents per share, compared with $196 million, or 19 cents per share a year earlier.
Investors have been eager to see a turnaround at Talisman since Hal Kvisle became CEO last fall. The former TransCanada boss took the top job after the abrupt departure of John Manzoni.
Kvisle has since set out a new strategy for the Calgary-based company focused on two key geographic areas: the Americas and Asia Pacific.
Higher-risk exploration areas, such as Peru and Poland, have been chucked from Talisman’s portfolio in favour of stable, predictable production.
The company has also ditched a particularly troublesome offshore project in Norway and scaled down its focus on the U.K. North Sea.
However, it’s hanging onto its interest in a potentially huge oilfield in the Iraqi region of Kurdistan for now.
The company says production in the quarter averaged 361,000 barrels of oil equivalent, down from 435,000 barrels in the corresponding quarter of 2012. Performance in Talisman’s two core areas, the Americas and Asia-Pacific, was strong during the quarter..
“We continue to make steady progress against our four priorities, and the underlying performance of our core business in the Americas and Asia-Pacific is strong,” Kvisle said in a statement.
“These regions represent the company’s future; we remain focused on operating efficiencies, cost management and capital investment performance.”