Canadian Superior Energy (SNG)

[califax]

Low natural gas prices, restructuring costs widen Q4 losses at Canadian Superior

By The Canadian Press
http://ca.news.yahoo.com/s/capress/100330/business/canadian_superior

CALGARY - Weak natural gas prices and costs associated with an extensive restructuring at Canadian Superior Energy Inc. (TSX:SNG) led to widened losses for both the fourth quarter and full year of fiscal 2009, the company said Tuesday.

The Calgary-based natural gas producer reported a net loss of $63.9 million for the quarter ended Dec. 31, more than doubling losses of $18.2 million cents per share booked in the corresponding quarter of 2008.

The loss per share amounted to 32 cents for the quarter, compared with a loss of 11 cents per share a year earlier.

Apart from a 25 per cent decline in quarterly sales, which sagged to $9.9 million from year-earlier levels of $13.2 million, Canadian Superior said the increase in red ink could be attributed to low natural gas prices as well as costs associated with a sweeping restructuring effort.

Canadian Superior spent six months under creditor protection under the Companies' Creditors Arrangement Act, emerging in September.

The company reported $18.8 million in restructuring costs for the year as well as a $57.5 million writedown of petroleum and natural gas properties.

These costs took a toll on full-year financial results. Canadian Superior reported a full-year net loss of $53.3 million or 30 cents per share, widening year-earlier losses of $23.8 million or 16 cents per share.

Natural gas pricing dragged full-year sales down by 55 per cent to $33.8 million from $74.5 million posted in 2008.

"While the company has been through a very difficult period during 2009, we believe it has emerged and continues to evolve as a much stronger company than it has ever been," Canadian Superior chairman Marvin Chronister said in a statement.

"We are aggressively pursuing our growth strategy and development of our assets. Therefore, we believe the best is still to come for our shareholders."

Canadian Superior explores for and produces oil and natural gas and is developing a liquefied natural gas project.

The company is active in Western Canada, Trinidad and Tobago, North Africa, off Eastern Canada and the United States.