Cenovus Energy 2Q Earnings Rise; Co to Return Excess Fund Flows to Shareholders
By Robb M. Stewart
Cenovus Energy plans to begin returning all excess free fund flows to shareholders after hitting its debt target and logging a rise in second-quarter production and improved U.S. refinery throughput.
The Canadian oil and natural gas company recorded net earnings of 1 billion Canadian dollars (US$724.2 million), or C$0.53 a share, up from with C$866 million, or C$0.44, a year earlier. On an adjusted basis, per-share earnings came in at C$1.26 a share.
Revenue for the quarter jumped 20% to C$16.91 billion from C$14.08 billion last year.
Cenovus said that after strengthening its balance sheet with the reduction of net debt to its C$4 billion target in July, it now aims to return 100% of excess free funds flow to shareholders.
The company's production, which comes from a mix of oil and gas production from oil sands, convention and offshore operations, averaged 800,800 barrels of oil equivalent a day, in line with the prior quarter and ahead of the 787,300 a day mean forecast of analysts polled by FactSet.
Downstream throughput in the second quarter was 622,700 barrels a day, a decline from 655,200 in the first quarter due to planned maintenance activities in Canadian refining and both planned and minor unplanned outages in the U.S. Crude throughput in the Canadian refining segment fell to 53,800 barrels daily in the quarter from 104,100 in the first three months of the year, while U.S. crude throughput rose to 568,900 barrels a day from 551,100 in the first quarter.
Cenovus said it now expects upstream production of between 785,000 and 810,000 oil-equivalent barrels a day for the full year, raising the midpoint of its target by 7,500 barrels daily, while refinery output is expected to be 640,000 to 670,000 barrels a day, an increase of 5,000 barrels at the midpoint.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
August 01, 2024 06:58 ET (10:58 GMT)
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