Talisman Energy Inc. reported an 85-per-cent drop in profits for its second quarter Wednesday, citing difficult economic conditions and low oil prices.
The Calgary-based oil and gas giant reported net income of $63-million or 6 cents per share, down from year-earlier profits of $426-million or 42 cents per share.
Net sales also plummeted during the quarter, falling to $1.6-billion from $3-billion the year before.
Cash flow sank to $900-million from $1.7 billion in the corresponding quarter of 2008.
The company reported a 2-per-cent decrease in year-over-year production during the quarter, averaging 424,000 barrels of oil equivalent per day compared to 432,000 the year before.
Talisman said it strengthened its balance sheet during the quarter, nearly halving net debt to $2-billion from $3.9-billion at the end of 2008.
"This was a solid quarter for Talisman, both operationally and financially," Talisman chief executive John Manzoni said in a statement.
"We continue to make excellent progress on the strategy, with notable success in the Marcellus and encouraging exploration results during the quarter. Year-to-date, our production from continuing operations is up 6 per cent, driven by increasing volumes from Southeast Asia, and we are on-track to meet our guidance for the year."