Cenovus Loses $668 Million in 1st Qtr
CBJ – With oil prices down by an average of more than 50% in 2014 and remaining low for the early part of 2015, Cenovus Energy reported a bigger-than-expected quarterly loss due to lower natural gas and crude oil prices with a net loss of $668 million. That compares with a profit of $2.47 million a year earlier.
Canada’s No.2 independent oil producer said average realized prices for oil fell 47% to $37.66 per barrel in the first quarter ended March 31 and natural gas prices declined 25% to $4.47 per thousand cubic feet.
The company reported an operating loss of 11% per share for the quarter while production rose 11% to 218,020 barrels of oil per day, while natural gas production fell nearly 3%.
Cenovus, which operates two oil sands projects it co-owns with ConocoPhillips, expects operating expenses to be at near the low end of its forecast range for 2015.
The company’s cash flow fell 45% to $495 million, likely putting some new projects in jeopardy of either being delayed or scrapped altogether.
The company said the net loss of $668 million was partly due to foreign exchange losses of $514 million.