Cenovus (TSX:CVE) triples dividend after $1.6B profit. Buy call?

Be the First to Comment Read

Cenovus (TSX:CVE) triples dividend after $1.6B profit. Buy call?

CVE stock
Image source: © Solarseven | Megapixl.com

Highlights

  • Cenovus Energy has tripled its dividend and said it would increase to 42 cents per share from 14 cents a year.
  • During the trading session on April 26, the CVE stock registered a growth of 0.7 per cent and closed at C$ 21.09 per share.
  • Along with the financial results for the first quarter, Cenovus Energy also provided the 2022 capital budget and guidance update.

Cenovus Energy Inc. (TSX:CVE) announced the financial results for the first quarter of this year and said it achieved a profit of C$ 1.6 billion, representing a massive 639 per cent year-over-year (YoY) increase.

Notably, Cenovus Energy has tripled its dividend and said it would increase to 42 cents per share from 14 cents a year. The dividend will be paid quarterly to the shareholders.

In an official statement, Cenovus' President and Chief Executive Officer, Alex Pourbaix, said that the company has continuously delivered on its commitments to the shareholders.

Also Read: 3 TSX smart penny stocks to buy in May        

During the trading session on April 26, the CVE stock registered a growth of 0.7 per cent and closed at C$ 21.09 per share. On Wednesday morning, it appeared investors were looking up the Cenovus Energy stock, and it would be worth watching what happens at the market open today.

Financial highlights of Cenovus Energy (TSX:CVE)

In Q1 2022, Cenovus said its total upstream production was approximately 800,000 barrels of oil equivalent per day (BOE/d). Meanwhile, the downstream throughput was 502,000 barrels per day.

Cenovus Energy's cash from operating activities jumped 499 per cent YoY to C$ 1,365 million, and the adjusted funds flow increased to C$ 2,583 million in Q1 2022.

As of March 31, 2022, Cenovus' long-term debt was C$ 11.7 billion, and its net debt was C$ 8.4 billion. Mr Pourbaix has said that the company has deleveraged its balance sheet, and it is in a better position to provide a clear picture of how the company will perform in future.

Cenovus stock

Bottom line

Along with the financial results for the first quarter, Cenovus Energy also provided the 2022 capital budget and guidance update. The oil and gas company said that it had raised its expected capital spending by C$ 300 million, and the updated range now stands between C$ 2.9 billion to C$ 3.3 billion.

This year, Cenovus has increased its capital spending to complete the Superior Refinery build. The company believes that higher gas prices would drive improved realized pricing in its conventional business.

Cenovus Energy has updated the guidance range for the expected cash taxes, and it now expects them to be in the range of C$ 1.4 billion to C$ 1.7 billion.

Also Read: EMO, ODV, and DSV: 3 TSXV precious metals stocks to buy?

Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

 

Disclaimer

Speak your Mind

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK