Bow Valley Industries (TSE), the Calgary-based oil and gas company which is developing a high- grade uranium project in Saskatchewan with Denison Mines (TSE), had a profitable year in 1989. Net income for the year ended Dec. 31 was $25.7 million or 17 cents per share, compared with $10.3 million in the same period last year. In 1989 the company reported a net loss of 4 cents per share after paying dividends. Operating revenues were up slightly to $291.2 million in 1989 from $267.7 million in the previous year.
Bow Valley attributed an increase in funds generated from operations to the improved contributions from oil and gas wells and lower Indonesian cash taxes.
In 1989, the company produced an average 34,484 bbl. per day compared with 38,375 bbl. in 1988, due to production declines from the Technical Assistance Contract in Indonesia and from the South Brae oil field in Britain’s North Sea.
While Bow Valley expects its oil production to increase this year, it may be some time before the company sees any uranium output from its 20% owned Midwest project in Saskatchewan.
Denison says it could be in a position to make a production decision by the end of this year, but it could be at least three years before mine construction is complete. Bow Valley Industries (TSE) — $000s Year ended Dec. 31 1989 1988 Revenue $291,200 $267,700 Net earnings (loss) 25,700 10,300
per share* 0.17 (0.04 ) *After preferred share dividends
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