Nexen Inc. says a steep drop in oil prices dragged its profits down 95 per cent and cut its operating cash flow by half during the second quarter. The energy firm also warned yesterday that production will be squeezed over the next few months due to maintenance work at a number of its operations. The company said profit for the three months ended June 30 was $20-million, or 4 cents a share - a drastic drop from its profit of $380-million, or 72 cents, in same quarter of 2008. Cash flow from operations fell by more than 50 per cent, plummeting to $443-million from $946-million the year before. Revenues were about $1.3-billion, down from $2.1-billion. Analysts surveyed by Thomson Reuters expected Nexen to post a profit of 31 cents per share. NXY (TSX) fell $1.53 to $21.62