CALGARY – Cenovus Energy Inc. (TSX:CVE) posted a $267-million loss in the second quarter but says it’s on track to cut its costs by about half a billion dollars this year, compared with the original 2016 budget.
The Calgary-based oil producer and refiner says its per-barrel operating costs have been reduced by 24 per cent at its oilsands operations and by nine per cent at is conventional crude operations.
The company’s net loss for the quarter was equal to 32 cents per share and compared with a year-earlier profit of $126 million or 15 cents per share.
A large part of the loss was related to Cenovus’s risk-management strategies, currency fluctuation and an operating loss of $39 million or five cents per share, compared with $151 million or 18 cents per share of operating earnings last year.
Cenovus also completed a workforce reduction program in the second quarter, and recorded $19 million in severance costs. Since the end of 2014, when oil prices began to tumble, Cenovus has cut about 31 per cent of its workforce.