Cenovus Energy, a Canadian energy company, beats its quarterly profit forecasts on the back of higher production
Cenovus, a Canadian oil and natural gas company, reported a decline in its first-quarter profits on Thursday. However it managed to surpass Wall Street expectations on the strength of increased production and improved refining profit margins.
Following the results, shares of the Calgary-based company listed in America rose nearly 1.4% during premarket trading.
The completion of the pipeline has been a boon to Canadian energy producers.
Trans Mountain pipeline
The project is the only way to export products outside the U.S.
The capacity of the pipeline has been increased to 890 000 barrels per day.
Peer Imperial Oil posted its highest ever sales last week.
First-quarter earnings
The company's refining and fuel business has seen its margins increase.
Suncor Energy
On Tuesday, the refinery's production and sales volume exceeded expectations.
Cenovus produced 818,900 barrels equivalent to oil per day (boepd), up from 800,900 a year ago.
The total quarterly downstream output was 665.400 barrels per day. This compares to 655.200 bbl a year earlier.
Refinery usage in the Canadian Refining Segment increased to 104%, from 94% one year earlier. In the U.S. it rose to 90 %. Segment Refining from 87%.
Cenovus CEO Jon McKenzie said in April that he was trying to avoid abrupt decisions regarding production or spending, as oil prices were at their lowest levels in four years and fears of recession were growing.
Cenovus' net income for the first quarter fell from C$1.18billion to C$859m ($618.79m) a year ago, as crude oil prices dropped due to uncertainty about the U.S. economic situation, tariff policies, and concerns over an oversupply.
According to data compiled and analyzed by LSEG, the company's profit per share was 47 Canadian cents, which exceeded analysts' average estimates of 37 Canadian cents. ($1 = 1.3882 Canadian dollars) (Reporting by Pooja Menon in Bengaluru; Editing by Shreya Biswas)
(source: Reuters)
