CALGRY -- Canadian Natural Resources (CNQ.TO)  is reporting a bigger third-quarter loss, but says it has made significant progress that allows it to hike the quarterly dividend by about nine per cent early next year.

The Calgary-based oil and gas company posted a net loss of $326 million or 29 cents per diluted share, nearly three times bigger than the year-earlier loss of $111 million or 10 cents per diluted share.

Canadian Natural's adjusted loss from operations rose to $355 million or 32 cents per share, which compared with year-earlier adjusted earnings of $113 million or 10 cents per share.

Canadian Natural says the bigger losses reflect a drop in cash flow from operations due to lower sales volumes because of planned turnaround activities at its Horizon and Primrose oilsands operations, as well as lower commodity prices.

Revenue declined to $2.48 billion from $3.32 billion, including royalties.

With the Horizon turnaround and expansion completed during the third quarter, however, Canadian Natural says production volumes have increased and work on the Kirby North development project is expected to resume.

Canadian Natural says it will pay a cash dividend of 25 cents per common share on Jan. 1, up nine per cent.