Canadian Oil Sands, the largest shareholder in the Syncrude Canada Ltd joint venture, said it swung to a loss in the first quarter as oil prices dropped by more than half.

The company, which has a 37 per cent stake in the Syncrude project, said its net loss was C$186 million ($154.1 million), or 38 Canadian cents per share, compared with a net profit of C$172 million, or 35 Canadian cents, in the first quarter of 2014.

Canadian Oil Sands said its loss came on sharply lower oil prices, as well as non-cash losses in US dollar debt. It sold its synthetic crude for C$55.95 per barrel on average in the quarter, down from C$105.73.

As oil prices nosedived the company was able to reduce operating costs thanks to lower natural gas and diesel costs as well as cost-cutting initiatives.Operating costs were C$35.71 per barrel, down 24 per cent from C$46.91 per barrel in the year-earlier quarter. The company reduced its 2015 operating cost forecast to $39.48 a barrel from its previous estimate of $40.19 a barrel.