North American Energy Partners Plunges After Warning of $40Mln-$45Mln Write-Down

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North American Energy Partners Inc. ( CA ) is down more than 15% this morning in TSX trade after saying it expects to take a writedown of $40 million to $45 million in its financial results for the fiscal year ended March 31.

The oilfield services firms said the write-down is needed to account for the long-term overburden removal contract between one of its subsidiaries and Canadian Natural Resources Ltd (CNQ.TO,CNQ) for the Horizon Oil Sands mine near Fort McMurray, Alberta. This writedown likely will be applied primarily to reduce unbilled revenue and is expected to reduce net income by $30 million to $34 million for the same period.

Canadian Natural Resource shares are up $0.67, or about 1.7%, to $40.42 a share today.

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This article appears in: Investing , Commodities


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