Cenovus Energy fourth-quarter profit misses estimates

By Thomson Reuters Feb 15, 2024 | 5:17 AM

(Reuters) -Cenovus Energy fell short of analysts’ estimates for quarterly profit on Thursday, due to lower refined product pricing in the U.S. and price realizations in the oil sands segment.

The Canadian oil and gas firm reported a net income of 39 Canadian cents per share for the fourth quarter, compared with 40 Canadian cents per share expected by analysts, per LSEG data.

Despite supply cuts from OPEC+ countries, U.S. crude oil prices declined nearly 10.7% in the quarter from a year earlier, when they were supported by disruptions from Russia’s invasion of Ukraine.

Global oil prices, however, still remain at a level when companies can drill profitably.

Cenovus said its quarterly upstream production rose to 808,600 barrels of oil equivalent per day (boepd) from 806,900 boepd a year.

The company reported a downstream throughput of 579,100 barrels per day (bpd), compared with 473,500 bpd a year earlier.

The December 2023 average Chicago 3-2-1 crack, a proxy for refining margins, was $7.65 per barrel, the lowest monthly average since 2020, the company said.

($1 = 1.3536 Canadian dollars)

(Reporting by Seher Dareen in Bengaluru; Editing by Sriraj Kalluvila)