CALGARY – Frontera Energy Corp. says it has suspended its dividends, withdrawn its guidance for the year and won’t repurchase shares because of difficult operating conditions.

The Calgary-based oil producer says it lost nearly $388 million or $4.04 per diluted share in the first quarter due to lower oil prices.

That compared with a profit of $46.2 million or 47 cents per share a year earlier.

It attributed the loss to a $151-million non-cash impairment charge, a $168-million reduction in deferred income tax assets and a $20-million writedown of oil inventory with all the changes related to lower oil prices.

Production averaged 63,572 barrels of oil equivalent per day, which was six per cent lower than the first quarter of 2019.

Capital expenditures were $65 million in the first quarter of 2020, 51 per cent lower than the fourth quarter and seven per cent lower than a year ago, as the company reduced its planned drilling and exploration activities.

Revenues dropped to nearly $237 million from $377.5 million a year earlier.

This report by The Canadian Press was first published May 6, 2020.

Companies in this story: (FEC).