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Cenovus Energy loss widens on nearly C$2 billion impairment, shares fall -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO: The pipelines carrying steam from the wellheads to heavy oil and back to the plant are visible along the roads and boreal forests at Cenovus Energy Christina Lake Steady Gravity Drainage project (SAGD), located 120km (74 mi) south of Fort McMurray (Alberta) on August 15, 2013. Cenovus is currently producing 100,000 barrels of oil daily at the Christina Lake Tar Sands Project. REUTERS/Todd Korol

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(Corrects net operational loss to C$97.9 million, not C$9.99 mln and consensus estimates in paragraph 3).

(Reuters) – Canada’s Cenovus Energy (NYSE) Inc reported a larger quarterly loss Tuesday due to a non-cash impairment in U.S. manufacturing of C$1.9billion ($1.50billion). This caused its U.S-listed shares to fall 6% in premarket trading.

Cenovus however stated that the U.S. manufacturer business is still of long-term importance to it. The company also sees reduced volatility in cash flows due to its integrated heavy oil value chains.

In the U.S., Lima Superior, Toledo and Toledo refineries reported an operating loss of C$97 millions in the fourth quarter, as compared to consensus expectations of a profit at C$15million, according To Credit Suisse (SIX:).

Cenovus bought Husky’s rival last year and created Canada’s No. Cenovus, an oil and gas producer, reported total production at 825 300 barrels of oil equivalent per hour (boepd), in the third quarter. This is up from 467 220 boepd one year ago.

The downstream throughput or crude oil processing increased by 469.900 barrels per daily (bpd), from 169,000 BPD.

Cenovus set an interim net-debt target of C$10billion and said that the debt was lower than C$9.6billion by year’s end.

Calgary, Alberta-based Company reported a net loss C$408 Million, or 21 Canadian Cents for the fourth quarter ended Dec. 31. This compares to C$153M, which is 12 Canadian cents per sy, one year ago.

Rivals, Imperial Oil (NYSE 🙂 Ltd. and Suncor Energy (NYSE 🙂 Inc. both failed to meet their quarterly profits expectations.

($1 = 1.2692 Canadian dollars)

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