Gulf Canada reports profit

Gulf Canada reports profit

CALGARY, Alberta (Reuters): Gulf Canada Resources Ltd., the country's sixth-largest oil and gas producer, said on Tuesday it climbed into the black in the fourth quarter thanks to high commodity prices and more production after its takeover of rival Crestar Energy.

Gulf, known for Canadian, Dutch North Sea and Indonesian operations, also said full-year cash flow climbed above C$1 billion ($650 million) for the first time as it shifted from an emphasis on debt-cutting to growing its business.

Fourth-quarter earnings were C$57 million, or 10 Canadian cents a share, up from a year-earlier loss of C$24 million, or 9 Canadian cents a share.

Earnings from Gulf Canada, the subject of recent takeover speculation, lagged a consensus estimate of 21 Canadian cents a share among analysts polled by Reuters.

Cash flow, a key indicator of an oil company's ability to fund its operations, surged 191 percent to C$408 million, or 85 Canadian cents a share, from C$140 million, or 37 Canadian cents a share, in 1999. Revenues more than doubled to C$635 million, up from C$300 million.