According to Reuters article published on April 26, 2023, Cenovus Energy <CVE.TO> on Wednesday reported its first-quarter profit fell by more than half from a year earlier, reflecting weaker crude prices and lower volumes in its U.S. refineries.
Cenovus, Canada's third-largest oil and gas producer, lowered its full-year production forecast and U.S. downstream throughput, but said refinery performance should improve in the second half of the year.
Cenovus also raised its base dividend by 33% to 56 Canadian cents per share annually.
"This was a challenging quarter and, to be blunt, not up to the standard we set for ourselves," Cenovus' outgoing CEO, Alex Pourbaix, said on an earnings call.
Pourbaix will move to the role of executive chair after the company's annual general meeting on Wednesday. Chief Operating Officer Jon McKenzie will succeed him as CEO.
Cenovus' Wood River and Borger refineries both ran at lower rates than expected in the first quarter, while the Superior and Toledo refineries, which have both undergone extensive rebuilds following fires, are ramping up and will return to full capacity by the end of the second quarter.
"Everybody should really look forward to the second half of the year because I believe we will see the full value of this engine operating both downstream and upstream," Pourbaix said.
Calgary-based Cenovus said upstream production fell 2% from the previous quarter to 779,000 barrels of oil equivalent per day (boepd), while its downstream production decreased 9% to 457,900 barrels per day (bpd).
The company lowered its annual upstream production outlook to between 790,000 boepd and 810,000 boepd, from its previous forecast of 800,000 boepd to 840,000 boepd.
Cenovus cut its full-year forecast for U.S. downstream throughput to between 480,000 bpd and 500,000 bpd, from an earlier estimate of 510,000 bpd to 550,000 bpd.
Net income fell 61% to C$636 million ($466.45 million) in the quarter. On a per share basis, the company earned 32 Canadian cents, compared with estimates of 31 Canadian cents, according to Refinitiv data.
Cenovus shares were last down 2.4% at C$22.62 on the Toronto Stock Exchange.
($1 = 1.3635 Canadian dollars)
