CALGARY (CP) -- The Viking Energy Royalty Trust generated a big increase in profits in the second quarter as the oil and gas operator boosted production and revenues from acquisitions and booked a tax-related gain.
Viking [TSX:VKR.UN] reported Tuesday it earned C$42.1 million or 25 cents a unit for the three months ended June 30. That compared with a profit of C$13.7 or 14 cents a unit in the prior year.
The 2005 results included the benefit of Viking's recent 8,000 barrel a day increase in production and a C$22.2 million reduction in the trust's future income tax provision reflecting the changes to Viking's internal corporate structure.
Revenue before royalties jumped to just under $90 million from $62.5 million.
Production for the second quarter averaged 20,285 barrels of oil equivalent output a day, 28 per cent higher than last year but down 12 per cent from the 2005 first quarter.
Viking said its production wa helped by the acquisition of the Calpine Natural Gas Trust and Kensington Energy earlier this year. However, production was also partially offset by third party processing plant turnarounds as well as the operating difficulties and delays in well servicing and development drilling caused by wet weather this spring.
(c) The Canadian Press 2005
