Cenovus energy Inc slashes dividend, cuts spending and jobs as loss deepens greater than expected February eleven final

Oil producer Cenovus strength Inc published a larger-than-anticipated quarterly loss and introduced a fresh round of cuts to its quarterly dividend, 2016 capital price range and workforce, as it tries to shore up finances amid an incessant fall in oil charges.

The Canadian enterprise, which has been reducing fees in reaction to a greater than 70 consistent with cent fall in oil expenses considering the fact that June 2014, said it might lower spending at its Foster Creek and Christina Lake oil sands initiatives in Alberta, which its operates in conjunction with ConocoPhillips.

Alberta’s full-size oilsand deposits are the arena’s 0.33-largest crude reserves, but are greater expensive to function in than conventional oil fields.

“Capital field and stability sheet electricity will stay our top priorities in this extremely tough oil price environment,” leader govt Brian Ferguson stated in a statement on Thursday.

Cenovus cut its 2016 capital spending for the second one time, this time with the aid of $two hundred-$three hundred million to $1.2-$1.3 billion, and said it also plans to lessen spending on its emerging oil sands belongings and its traditional oil enterprise.

but, the organisation stated the planned capital spending reductions could have “minimum effect” on its oilsands production, which it expects to live within its previous forecast of a hundred and forty four,000-157,000 barrels consistent with day on a internet basis.

Cenovus offered its oil and gasoline royalty properties to Ontario instructors’ pension plan for about $3.three billion closing yr to bolster its balance sheet and create flexibility to put money into growth initiatives.

The organisation said on Thursday it plans to further lessen its body of workers, on pinnacle of a 24 in keeping with cent reduction ultimate 12 months. It did no longer say what number of personnel would be affected in the modern day spherical of task cuts.

Cenovus, which had reduce its dividend by means of forty in step with cent in 2015, stated it would shrink its cutting-edge-zone dividend through sixty nine consistent with cent to 5 Canadian cents in keeping with proportion.

The employer additionally plans to reduce operating, popular and administrative prices, inclusive of for its personnel, with the aid of $2 hundred million.

Cenovus’s net loss widened to $641 million, or seventy seven cents in step with proportion, within the fourth quarter ended Dec. 31, from $472 million, or 62 cents per share, a year in advance.

operating loss, which excludes maximum one-time gadgets, fell by using more than 1 / 4 to $438 million, or 53 Canadian cents consistent with proportion.