UPDATE: Cenovus Energy Falls 2.5% as Q2 Profit Falls 40%, Lower Than Expectations
Canadian independent oil producer Cenovus Energy's (CVE.TO) second-quarter profit fell 40% on weaker prices for oil and natural gas. Net earnings fell to C$396 million, or 52 cents per share, from C$655 million, or 86 cents per share, Reuters reported. This was lower than expectations and the market appears to be focussed on that, according to BNN TV.
It said Cenovus's cash flow, a key indicator of its ability to pay for new projects, fell about 2% to C$925 million, or C$1.22 per share, from C$939 million, or C$1.24 per share, a year earlier. This was better than expectations, according to BNN TV.
Total oil production rose 28% to 155,566 barrels per day, whereas natural gas production fell 9% to 596 million cubic feet per day.
Production from the company's Christina Lake and Foster Creek oil sands projects rose 38% to 80,317 barrels per day.
Weaker prices for both oil and natural gas were somewhat offset by the increase in oil production, the company said in a statement.
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