April 2, 2020 / 11:23 AM / 2 months ago

UPDATE 1-Cenovus further cuts 2020 spending, suspends dividend citing oil prices

(Adds details on company’s plans, industry background)

April 2 (Reuters) - Canadian integrated oil and natural gas company Cenovus Energy said on Thursday it would reduce its full-year capital spending by another C$150 million ($106 million) and suspend its dividend, citing low global oil prices.

The fall in crude prices have forced producers to look for ways to reduce cost, and Cenovus said its measures included a 25% cut in compensation for chief executive officer and board members.

The company’s other executives will take a 12%-15% reduction in annual base salary, while employees at other levels will experience a graduated smaller salary impact, Cenovus said.

Last month, Cenovus announced a near 32% cut to its capital spending for the year and a temporary suspension of its crude-by-rail program, as an erupting Saudi-Russia oil price war dealt a blow to the struggling Canadian oil industry.

The company on Thursday kept is oil sands production outlook unchanged in then range of 350,000 barrels per day (bpd) to 400,000 bpd for the year. ($1 = 1.41 Canadian dollars) (Reporting by Shradha Singh in Bengaluru; Editing by Maju Samuel)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below