Cenovus swings to $224M profit in Q2 on improved conditions, Husky takeover

The Cenovus logo seen at the company's headquarters in Calgary, Alta., on November 15, 2017. (THE CANADIAN PRESS / Jeff McIntosh)

Cenovus Energy Inc. swung to a $224-million net profit in its latest quarter on a large recovery in sales due to improved market conditions since the onset of the COVID-19 pandemic and its takeover of rival Husky Energy Inc.

The Calgary-based oil producer earned 11 cents per share in the second quarter, compared with a loss of 19 cents per share or $235 million a year earlier.

Revenues for the three months ended June 30 was $10.58 billion, up from $2.17 billion in the second quarter of 2020.

Cenovus was expected to earn 31 cents per share on $9.78 billion of revenues, according to financial data firm Refinitiv.

Total production reached 765,900 barrels of oil equivalent per day, up 65 per cent from 465,400 boe/d in the prior year period.

As a result, Cenovus is increasing its production guidance for 2021 by two per cent with total capital expenditures to remain unchanged.

“Our results underscore the earnings power of the combined company as we further integrate and deliver on our expanded asset base,” said CEO Alex Pourbaix, adding he expects to accelerate debt reduction in the second half of the year.

The company says it is on track to achieve $1.2 billion of synergies and net debt of $10 billion by the end of the year, down from $12.4 billion at the end of the quarter.

This report by The Canadian Press was first published July 29, 2021