Strong oil prices, refinery profits boost Cenovus earnings

Cenovus Energy Inc. is reporting higher fourth-quarter profits boosted by stronger oil prices, better-than-expected refinery profits and production that almost doubled after it bought out its American oilsands partner.

The company reported net income of $620 million or 50 cents per share, well ahead of $91 million, or 11 cents per share, in the year-earlier period.

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Revenue was $5.1 billion, ahead of analyst predictions of $4.7 billion as reported by Thomson Reuters.

The company said it had largely completed a 15 per cent cut to its workforce in January and February, part of its plan under new CEO Alex Pourbaix to eliminate $1 billion in cumulative capital, operating and administration costs over two years.

Combined production at Cenovus's Christina Lake and Foster Creek steam-driven oilsands operations in northern Alberta averaged 292,000 barrels per day in 2017, 95 per cent higher than the previous year mainly due to the May acquisition of ConocoPhillips' 50 per cent stake.

It said sales volumes in the fourth quarter were about seven per cent lower than production due to unplanned third-party pipeline capacity issues late in the quarter.

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