Refinery outage hurts Cenovus Energy's quarterly profit

Thu Oct 23, 2014 1:13pm EDT
 
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(Reuters) - Cenovus Energy Inc (CVE.TO: Quote), Canada's No.2 independent oil producer, reported a 4 percent fall in quarterly profit mainly due to an outage at a refinery.

Cenovus's operating cash flow from refining fell 53 percent due to an unplanned coker outage in July at its Borger refinery in Texas and a planned turnaround at the Wood River refinery in Illinois.

The company has a 50 percent stake in the two U.S. refineries operated by Phillips 66 (PSX.N: Quote).

Cenovus, which co-owns the Foster Creek and Christina Lake oil sands projects with ConocoPhillips (COP.N: Quote), said its total oil production rose 13 percent to 199,089 barrels per day (bpd), driven by a 23 percent jump in oil sands production.

Natural gas production fell 7 percent.

Production at Foster Creek rose 15 percent to an average of nearly 57,000 bpd.

Cenovus's cash flow, a key indicator of its ability to fund new projects, rose 6 percent to C$985 million, or C$1.30 per share.

Net income fell to C$354 million, or 47 Canadian cents per share, in the third quarter ended Sept. 30 from C$370 million, or 49 Canadian cents per share, a year earlier.

Operating profit, which excludes most one-time items, rose 19 percent to C$372 million, or 49 Canadian cents per share.

(Reporting by Scott Haggett in Calgary and Ashutosh Pandey in Bangalore; Editing by Joyjeet Das and Kirti Pandey)

 
Brian Ferguson, president and CEO of Cenovus addresses shareholders at the company's annual general meeting in Calgary, Alberta, April 25, 2012. REUTERS/Todd Korol