Cenovus HQ, located in Brookfield Place in downtown Calgary. File Photo
Cenovus Energy reported a third quarter profit of $1.61 billion, nearly triple the $551 million it made a year ago, despite lower production and downstream metrics.
Total upstream production was about 777,900 barrels of oil equivalent per day, down from 804,800 boepd in the third quarter of 2021.
In addition, downstream throughput averaged 533,500 barrels per day, down from 554,100 bpd a year earlier.
The Calgary-based company also reduced its long-term debt to less than $8.8 billion and net debt to about $5.3 billion.
Cenovus president and CEO, Alex Pourbaix, told a quarterly conference call, the newest Lloydminster thermal facility, Spruce Lake North produced first oil in early August and has since hit daily rates well above its nameplate of 10,000 barrels per day.
“Recall that when we took over the Lloyd thermals, those combined assets were producing around 80,000 barrels a day by adding Spruce Lake North as well as continuing to apply Cenovus’ SAGD expertise we now see the Lloyd thermals run closer to 110,000 barrels a day,” said Pourbaix.
He went to recap the quarterly achievements and what to expect next.
“Our upstream operations continue to build on momentum towards 800,000 barrels a day and above and delivering meaningful value and returns on investment. Our downstream performance has not yet fully shown what it can do in this environment. And that will be management’s focus going to Q4 and 2023,” said Pourbaix.
He also reports their recently acquired, but non-operated joint venture Toledo refinery is shutdown due to a fire on Sept. 20 that led to the death of two workers.
