Canada's Cenovus profit jumps on record production, stronger refining margins
CVE•Cenovus Energy's third-quarter net income rose to C$3.36 billion from C$1.29 billion a year earlier, as production reached a record 1.024 million barrels of oil equivalent per day. Its adjusted refining margin increased to C$55.52 per barrel from C$29.83 in the prior quarter.
1. Profit and production rise
Cenovus Energy reported third-quarter net income of C$3.36 billion, or C$1.83 per share, compared with C$1.29 billion, or 72 Canadian cents per share, a year earlier. Production reached a record 1.024 million barrels of oil equivalent per day, up from 832,900 boepd a year earlier, with quarterly records at its Christina Lake, Foster Creek and Sunrise oil sands projects.
2. Refining margins strengthen
The company's adjusted refining margin rose to C$55.52 per barrel from C$29.83 in the preceding quarter. It processed 437,200 barrels per day of crude, down from 710,700 bpd a year earlier; a planned turnaround at its Lima refinery weighed on US refining throughput. Overall crude unit utilization was 92%, and US refining adjusted market capture was 88%.
3. Maintenance and acquisition
Cenovus expects planned maintenance at its US refining operations to reduce fourth-quarter throughput by 40,000 to 50,000 bpd. In October, it agreed to acquire Athabasca Oil in a C$5.7 billion cash-and-stock deal expected to close in December; the transaction would add about 45,000 boepd to its thermal oil sands production.
