Highlights CALGARY, Oct. 27 /PRNewswire-FirstCall/ -- Petro-Canada announced today third quarter earnings from operations adjusted for unusual items of $659 million ($1.27/share), up 38% from $477 million ($0.90/share) in the same quarter of 2004. Third quarter 2005 cash flow was $1,063 million ($2.05/share), compared with $869 million ($1.63/share) in the same quarter of last year. Cash flow is before changes in non-cash working capital. Net earnings for the third quarter in 2005 were $614 million ($1.19/share), compared with $410 million ($0.77/share) in the same period of 2004. Net earnings include unrealized gains or losses on derivative contracts, together with gains or losses on foreign currency translation and disposal of assets. In the third quarter of 2005, an unrealized mark-to-market loss on derivative contracts associated with the Buzzard acquisition lowered net earnings by $85 million after-tax. "The excellent business environment and solid operations resulted in strong earnings and cash flow this quarter. With our upstream turnarounds largely complete, full year production is anticipated to come in on guidance," said Ron Brenneman, president and chief executive officer. Production of crude oil, natural gas liquids and natural gas averaged 422,000 barrels of oil equivalent/day (boe/d) during the quarter, compared to 435,700 boe/d in the same quarter of 2004. Production guidance for the full year remains at 415,000 to 430,000 boe/d. "Looking forward, I'm pleased with our progress on strategic projects. We are on track to add production from White Rose, Syncrude, De Ruyter and Buzzard, and we took an important step in our Fort Hills project by securing a very capable mining partner," said Brenneman. "We are positioning our Downstream business to take advantage of long-term strengthening of light/heavy crude differentials. We are converting the Edmonton refinery to process oil sands based feedstock and evaluating the addition of a coker in Montreal." Petro-Canada is one of Canada's largest oil and gas companies, operating in both the upstream and downstream sectors of the industry in Canada and internationally. Its common shares trade on the Toronto Stock Exchange under the symbol PCA and on the New York Stock Exchange under the symbol PCZ. The full text of Petro-Canada's third quarter release, including the Management's Discussion and Analysis, can be accessed on Petro-Canada's web site at http://www.petro-canada.ca/eng/investor/9259.htm, and will be available through SEDAR at http://www.sedar.com/. Petro-Canada will hold a conference call to discuss these results with investors on Thursday, October 27, 2005 at 9:00 a.m. Eastern Time. To participate, please call 1 866 898-9626 or (416) 340-2216 at 8:55 a.m. Media are invited to listen to the call by dialing 1 866 540-8136 or (416) 340-8010 and are invited to ask questions at the end of the call. Those who are unable to listen to the call live may listen to a recording of it approximately one hour after its completion by calling 1 800 408-3053 or (416) 695-5800 (passcode number 3163113). A live audio broadcast of the conference call will be available on Petro Canada's website at http://www.petro-canada.ca/eng/investor/9259.htm on October 27 at 9:00 a.m. Eastern Time. Approximately one hour after the call, a recording of the call will be available on the website. Legal Notice - Forward-Looking Information This quarterly report contains forward-looking statements. Such statements are generally identifiable by the terminology used, such as "plan," "anticipate," "intend," "expect," "estimate," "budget" or other similar wording. Forward-looking statements include, but are not limited to, references to future capital and other expenditures, drilling plans, construction activities, the submission of development plans, seismic activity, refining margins, oil and gas production levels and the sources of growth thereof, results of exploration activities and dates by which certain areas may be developed or may come on-stream, retail throughputs, pre- production and operating costs, reserves estimates, reserves life, natural gas export capacity and environmental matters. These forward-looking statements are subject to known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil and gas prices; refining and marketing margins; the ability to produce and transport crude oil and natural gas to markets; the effects of weather conditions; the results of exploration and development drilling and related activities; fluctuation in interest rates and foreign currency exchange rates; the ability of suppliers to meet commitments; actions by governmental authorities including increases in taxes; decisions or approvals of administrative tribunals; changes in environmental and other regulations; risks attendant with oil and gas operations; expected rates of return; and other factors, many of which are beyond the control of Petro- Canada. These factors are discussed in greater detail in filings made by Petro-Canada with the Canadian provincial securities commissions and the U.S. SEC. Readers are cautioned that the foregoing list of important factors affecting forward-looking statements is not exhaustive. Furthermore, the forward-looking statements contained in this quarterly report are made as of the date of this report, and Petro-Canada does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this report are expressly qualified by this cautionary statement. Petro-Canada's staff of qualified reserves evaluators generates the reserves estimates used by the Company. Our reserves staff and management are not considered independent of the Company for purposes of the Canadian provincial securities commissions. Petro-Canada has obtained an exemption from certain Canadian reserves disclosure requirements to permit it to make disclosure in accordance with SEC standards in order to provide comparability with U.S. and other international issuers. Therefore, Petro-Canada's reserves data and other oil and gas formal disclosure is made in accordance with U.S. disclosure requirements and practices and may differ from Canadian domestic standards and practices. Where the term barrel of oil equivalent (boe) is used in this quarterly report it may be misleading, particularly if used in isolation. A boe conversion ratio of six Mcf: one bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The use of terms such as "probable," "possible," "recoverable," or "potential" reserves and resources in this quarterly report does not meet the guidelines of the SEC for inclusion in documents filed with the SEC. DATASOURCE: Petro-Canada CONTACT: INVESTOR AND ANALYST INQUIRIES: Gordon Ritchie, Investor Relations, (403) 296-7691; MEDIA AND GENERAL INQUIRIES: Michelle Harries, Corporate Communications, (403) 296-3648, http://www.petro-canada.ca/; To request a free copy of this organization's annual report, please go to http://www.newswire.ca/ and click on Tools for Investors.

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