Franco-Nevada, which provides miners and oil and gas producers upfront cash in exchange for future production, expects to see a 25% hit to revenue from its energy business this year as the global downdraft in crude prices takes a toll on output and drilling activity, a company executive said on Tuesday.
Toronto-listed Franco-Nevada said it expects revenue from its energy assets of $80-million to $95-million this year, down from $115.9-million last year. The 2020 forecast assumes a US oil price of $45 per barrel.
Oil prices had their biggest one-day rout since the 1991 Gulf War on Monday after Saudi Arabia and Russia signaled they would hike output.