Canadian Nexen dismisses war fallout in Yemen [Archives:2003/07/Local News]

February 17 2003

A Canadian daily revealed that Canadian Nexen’s activities in Yemen will probably not be affected by a possible war against Iraq. Charlie Fischer, chief executive of Calgary-based Nexen, said that the company’s investment in Yemen, which accounts for 45 per cent of its total petroleum production, won’t be threatened by a war in the Gulf.
“There’s a lot of uncertainty in the region and there is an awful lot of concern around the world about the potential of war in Iraq,” Fischer told investors and analysts on a conference call. “Iraq is still a fair ways away from Yemen . . . and I do not see that (Yemen) would have anything to do with this war.”
Nexen’s Yemen operations have been one of the company’s most profitable and prolific investments and its production there has never been halted.
“It’s an issue of perception,” said Brian Prokop, an analyst at Peters & Co. in Calgary, “because it’s in the Middle East, the (production) gets discounted. It’s a great cash cow for Nexen, but the value that’s there isn’t being recognized.”
According to the Canadian paper, Calgary Herald Nexen earned $452 million in 2002, or $3.34 a share, up slightly from 2001 and revenue rose less than one per cent to $2.6 billion.