Cenovus Energy reports 56% drop in quarterly profits on lower production

Cenovus Energy, a Canadian oil and natural gas producer, reported a 56% drop in its third-quarter profits on Thursday. This was due to lower commodity prices and a decrease in production volumes and throughput.

Global Brent crude averaged $78,3 per barrel during the quarter reported, a drop of nearly 9% from a year ago, while Canadian gas prices plummeted to their lowest levels in over two years.

Cenovus reported that its total upstream output was 771.300 barrels equivalent per day (boepd), down from 797,000 a year ago.

Canada's oil-sands refineries and projects undergo maintenance or turnarounds that often require a temporary shutdown of production.

Due to a major turnaround in its Lima refinery, the total downstream throughput of the quarter ended September 30 was down 3% compared to a year ago to 642,900 crude oil barrels per day (bpd). According to the U.S. Energy Information Administration, the refinery's refining capacity is 183,000 barrels per day (bpd).

Cenovus shut down an estimated 42,000-47,000 barrels per day (bpd) of upstream production during the third quarter. This compares to 11,000-14,000 barrels per day in the three previous months.

The CEO Jon McKenzie said, "With planned maintenance activities upstream and downstream behind us, we will be well-positioned to deliver strong operation for the remainder of the year and through 2025."

Separately on Thursday, Canadian Natural Resources, a peer company, also reported a decrease in its third-quarter profits due to lower crude oil prices and a decline in the production.

Calgary-based company's Net Income fell from C$1.86 Billion, or 97 Canadian Cents per Share, to C$820 Million ($589.17 Million), or 42 Canadian Cents per Share, for the three months ending Sept. 30.

(source: Reuters)