Toreador 4Q loss narrows as oil prices rise, offsetting production decline

Toreador 4Q loss narrows as oil prices rebound

PARIS — French energy company Toreador Resources Corp. said Monday that its fourth-quarter loss narrowed to $5 million as rising oil prices partially offset falling production.

Toreador said the average price of oil rose 34 percent in its fiscal fourth quarter, helping make up for an 8 percent decline in production.

Toreador’s loss of 24 cents per share compares with a loss of $38.5 million, or $1.93 per share, in the fourth quarter a year earlier. Its revenue rose 30 percent to $6.1 million.

Analysts polled by Thomson Reuters expected the company to report a loss of 2 cents per share on revenue of $5.78 million. Analysts typically exclude one-time items, such as the $4 million in costs Toreador recorded for relocating its headquarters from Dallas to Paris.

For the full year, Toreador reported a loss of $25.4 million, or $1.24 per share, compared with a loss of $108.6 million, or $5.48 per share, a year ago. The company said the loss was due to low oil prices early in the year and decreased production because of the economic downturn.

Revenue fell 44 percent to $19.2 million.

Toreador President and CEO Craig McKenzie said the company’s results reflect a yearlong turnaround to reduce debt, streamline operations and focus oil exploration and production entirely in France.

McKenzie said the company sees potential for growth in shale oil from the Paris Basin. Toreador now holds 750,000 acres, with additional acreage pending, and expects to begin drilling in the second half of this year.

Toreador shares fell 79 cents, or 8 percent, to $8.94 in midday trading.