CALGARY – Encana Corp. (TSX:ECA) says it delivered on its strategic objectives last year and is now poised for growth, after losing US$944 million in 2016 and US$5.17 billion in 2015.
The 2016 full-year loss, which Encana reports in U.S. currency, included $1.4 billion of asset writedowns — substantially less than in 2015, when Encana recorded US$6.47 billion of impairments reflecting the reduced value of its assets.
The Calgary-based company, which has focused its efforts on four large oil formations in Western Canada and the southern United States, says it recorded no asset impairments in the fourth quarter of 2016.
Revenue was down sharply from the comparable periods of 2015, dropping by 34 per cent to $2.92 billion for the full year. But the year-to-year decline was smaller in the fourth quarter, when revenue was down 20 per cent to US$822 million.
For the three months ended Dec. 31, Encana had a net loss of US$281 million or 29 cents per share in the fourth quarter — less than half as much as the $612 million loss, or 72 cents per share, in the fourth quarter of 2015.
Encana chief executive Doug Suttles says the progress that was made in the fourth quarter will carry into 2017 — allowing the company to significantly increase production throughout the year and to improve its profit margins.