Oil Price and Output Growth Boosts Cenovus Energy Inc Profit

Cenovus Energy Inc., Encana Corporation’s oil manufacturer spin off back in 2009, reported that its profits for the fourth quarter increased by more than three times as oil prices and production output grew.

In its recent statement, the Calgary-based oil company said that its net income grew to 35 cents per share from 10 cents per share in the past year. This resulted to a net revenue increase amounting to C$266 million from C$78 million. Its operating earnings rose from 19 cents per share to 44 cents per share which did not meet the 53 cents collective estimate polled by Bloomberg.

Producers of energy have gained an advantage from a growth in current crude oil prices which traded in New York at about $94.06 per barrel during the previous quarter. This rate is higher than 10 percent compared to the earlier year. Cenovus produced 144,273 oil barrels and natural-gas liquids daily during that period, a gain of 11% versus the earlier year. The dividend for quarter one grew by 10% to reach 22 cents per share.

The company plans to strengthen investment by 23% this 2012 to nearly C$3.4 billion. According to the statement it released in December, its production in its Christina Lake oil sands operation is expected to reach more than twice as much during that period. Last December 7, Brian Ferguson, Cenovus Chief Executive Officer said that the company anticipates its overall output to increase by 10% to 15% in the coming years.

The release of the earnings statement occurred prior to the beginning of Toronto’s regular trading. Cenovus posted a recent growth of 2.3% to reach C$38.60.

By Chris Termeer