Alberta-based nickel refiner Sherritt Gordon (TSE) plans to acquire more natural gas assets this year after a show of strength with its recent acquisition of Canada Northwest Energy (CNW).
“Most of our financial success in 1992 came from this acquisition,” Chairman Ian Delaney told the Toronto Society of Financial Analysts at a recent luncheon. “We have the ability to produce about 60% of what we consume.”
For the year ended Dec. 31, 1992, Sherritt realized net earnings of 2.3 million (6 cents per share) compared with earnings of $1.15 million (4 cents per share) the year before. A 15% increase in revenue to $439.8 million was largely the result of higher sales in the oil and gas and fertilizer divisions.
Sherritt purchased CNW in October, 1991, to meet its own consumption needs of about 80 million cu. ft. of gas per day. As of Dec. 31, 1991, Sherritt Oil and Gas had proven and probable reserves of 194 billion cu. ft. of natural gas and 28 million barrels of oil.
With the nickel prices continuing to slide south, Sherritt is also looking to bolster its successful technologies division. Its team of 300 engineers and scientists are currently developing an anti-microbial coating for medical instruments.
Sherritt spends about $30 million annually on research and development.
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