Talisman Energy Inc., the oil and natural gas producer that replaced its chief executive officer last month, reported a loss in the third quarter following asset impairments. Shares fell 1.7 percent.

The net loss was $731 million, or 71 cents a share, compared with profit of $521 million, or 24 cents, a year earlier, the Calgary-based company said today in a statement on its website. Earnings excluding a trading loss, share-based payments, a fee tied to Pennsylvania drilling rules and foreign-exchange taxes represented a loss of 4 cents a share, compared with the 6-cent profit analysts had expected, according to the average of 18 estimates compiled by Bloomberg.

Hal Kvisle, the former TransCanada Corp. head who replaced John Manzoni as CEO on Sept. 10, pledged a “rationalizing” of assets when he took over and subsequently announced Talisman’s exit from Peru. Leaving that country, as well as “uncertainty” surrounding the Yme project in Norway, a ban on shale gas development in Quebec and declining reservoir performance at Rev in Norway resulted in an after-tax impairment charge of $443 million, the company said today.

The company’s financial results were “slightly below market expectations,” Randy Ollenberger, an analyst at BMO Capital Markets Ltd. in Calgary, said in a note today. Output was “strong” and Talisman’s reduced spending for the year will target “its most promising and economic assets,” he said.

Spending Forecast

Talisman updated its forecast for 2013 capital spending to about $3 billion. Chief Financial Officer L. Scott Thomson said in September that spending would reach as much as $3.8 billion this year, down 18 percent from last year.

Production from operations increased 6 percent to the equivalent of 415,000 barrels of oil a day in the third quarter, driven by gas volumes in North America and liquids growth in Southeast Asia, Colombia and the Eagle Ford formation, Talisman said, keeping its full-year output guidance unchanged. Revenue declined 12 percent to $1.72 billion.

The benefit of production gains was curbed by lower gas prices in North America and a decline in North Sea output. Gas prices averaged $2.893 per million British thermal units in New York in the quarter, down 29 percent from a year earlier.

The company fell 4.6 percent to C$11.50 at the close in Toronto, extending its decline this year to 11 percent.

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