2023-07-27 14:28:33 ET
Cenovus Energy ( NYSE: CVE ) +2.6% in Thursday's trading after reporting Q2 earnings that fell by two thirds from a year ago but topped analyst expectations, as Canada's wildfires forced companies to cut production.
Q2 net earnings fell to C$866M (~US$655M), or C$0.44/share, from C$2.43B, or C$1.19/share, in the year-earlier quarter, but analysts had forecast a sharper decline in earnings to C$0.40/share.
Q2 upstream production fell 4% Y/Y to 729.9K boe/day, reflecting the wildfire activity and a planned turnaround at its operations at Foster Creek in Alberta.
For the full year, Cenovus ( CVE ) cut its upstream production guidance to 775K-795K boe/day from its earlier forecast of 790K-810K boe/day to reflect its updated outlook for commodity prices, production and operating expenses for the remainder of the year.
In the company's earnings conference call, CEO Jon KcKenzie said the risk of wildfires to Cenovus ( CVE ) facilities has been "reduced significantly" because there is less vegetation to burn after the May-June fires caused the shutdown of ~85K boe/day of production.
Cenovus ( CVE ) said it has achieved full run rates at its 160K bbl/day Toledo, Ohio, refinery, but has not yet concluded start-up at a fluid catcracker at the 50K bbl/day Superior refinery in Wisconsin.
The Borger refinery in Texas has returned to full rates after series of planned and unplanned outages in Q2, the company said.
More on Cenovus Energy:
- Financial and valuation comparison to sector peers
- Analysis: Cenovus Energy: Still Growing
- Stock price return: Down 1% YTD, roughly flat in the past 12 months
For further details see:
Cenovus rises after Q2 beat; says wildfire risk 'reduced significantly'