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UPDATE 1-Cenovus Energy profit jumps 11-fold on crude rally

UPDATE 1-Cenovus Energy profit jumps 11-fold on crude rally

Reuters · 07/28/2022 06:16
UPDATE 1-Cenovus Energy profit jumps 11-fold on crude rally

Adds production, background

- Cenovus Energy Inc CVE on Thursday reported a 11-fold surge in second-quarter profit, helped by its purchase of rival Husky and rising energy prices after the Russian invasion of Ukraine.

Oil prices have scaled multi-year records this year as Western sanctions against major exporter Russia squeezed an already under-supplied market. Brent crude, the global benchmark was trading at over $108 a barrel on Thursday.

Cenovus, which completed its purchase of Husky in January to create Canada's No. 3 oil and gas producer, said its production fell to 761,500 barrels of oil equivalent per day (boepd) in the quarter, from 765,900 boepd a year earlier.

The production decline was due to a planned turnaround at its Christina Lake facility, the company said.

The Calgary, Alberta-based company's earnings rose to C$2.43 billion ($1.90 billion), or C$1.19 Canadian cents per share, for the three months ended June 30, from C$224 million, or 11 Canadian cents per share, a year earlier.


($1 = 1.2815 Canadian dollars)


(Reporting by Shariq Khan; Editing by Shailesh Kuber)

((Shariq.Khan@thomsonreuters.com; Twitter: @shariqrtrs;))