Cenovus (TSX:CVE) Stocks Drop After Reporting Loss in Q4 2020

Summary

  • Cenovus Energy Inc (TSX:CVE) has reported a net earnings loss of C$ 153 million for its last quarter of 2020.
  • As the Calgary-based company released its latest financial data, Cenovus stocks reflected a drop of nearly five per cent on Tuesday morning, February 9 (9.45AM EST).
  • Cenovus Energy released its budget for 2021 in January, slicing out a capital spending budget of C$ 2.3 to C$ 2.7 billion and a sustaining capital of C$ 2.1 billion for the year.

 

Cenovus Energy Inc (TSX:CVE) has reported a net earnings loss of C$ 153 million for its last quarter of 2020, ending December 31, down from a quarterly profit of about C$ 113 million in the fourth quarter of 2019. The Canadian energy producer also reported an operating loss of about C$ 551 million in Q4 2020, as compared to that of C$ 164 million in the same period a year before.

As the Calgary-based company released its latest financial data, Cenovus stocks reflected a drop of nearly five per cent on Tuesday morning, February 9 (9.45AM EST).

Cenovus Energy released its budget for 2021 in January, slicing out a capital spending budget of C$ 2.3 to C$ 2.7 billion and a sustaining capital of C$ 2.1 billion for the year.

Let’s take peek at Cenovus Energy’s Q4 2020 financials to understand the company’s latest performance better.

©Kalkine Group 2021

 

Cenovus Energy Inc (TSX:CVE)

Current Stock Price: C$ 8.21


Cenovus Energy said in its latest financial report that it handled 2020’s severe oil price fluctuations by cutting down on its capital spending and strategically overseeing its oil sands production, among other things. It also claimed to have raised positive free funds flow in Q4 2020, which was down 73 per cent year-over-year (YoY) at C$ 99 million for the quarter.

The oil producer had also announced its merger with peer Husky Energy in the last quarter of 2020, a deal which was finally completed last month.

Cenovus said that it closed 2020 with net debt of about C$ 7.2 billion and an annual operating loss of C$ 2.6 billion.

On the operational front, the company reported a total average production of 467,202 barrels of oil equivalent per day (BOE/D), marginally down from that of 467,448 BOE/D in Q4 2019.

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