Cenovus Energy posts wider loss on nearly C$2 billion impairment charge

[February 08, 2022]  (Reuters) -Cenovus Energy Inc posted a wider quarterly loss on Tuesday primarily due to on-cash impairment of C$1.9 billion ($1.50 billion) in the U.S. manufacturing segment.

Pipelines carrying steam to wellheads and heavy oil back to the processing plant line the roads and boreal forest at the Cenovus Energy Christina Lake Steam-Assisted Gravity Drainage (SAGD) project 120 km (74 miles) south of Fort McMurray, Alberta, August 15, 2013. Cenovus currently produces 100,000 barrels of heavy oil per day at their Christina Lake tar sands project. REUTERS/Todd Korol
 

Cenovus, however, said it continues to see long-term value in the U.S. manufacturing business, including reduced cash flow volatility offered by the company's integrated heavy oil value chain.

Cenovus, which agreed to buy rival Husky last year to create Canada's No. 3 oil and gas producer said total production stood at 825,300 barrels of oil equivalent per day (boepd) in the quarter, up from 467,202 boepd a year earlier.

Downstream throughput, or the amount of crude processed, rose 469,900 barrels per day (bpd) from 169,000 bpd.

The Calgary Alberta-based company reported a net loss of C$408 million, or 21 Canadian cents, for the fourth-quarter ended Dec. 31, compared with a loss of C$153 million, or 12 Canadian cents per share, a year earlier.

($1 = 1.2692 Canadian dollars)

(Reporting by Arunima Kumar in Bengaluru;Editing by Vinay Dwivedi)

 

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