Husky (TSX:HSE) & Cenovus (TSX:CVE) Energy Stocks Trend Post Merger & Q3 Results

5 min read | October 30, 2020 11:21 PM AEDT | By Kunal Sawhney

Husky (TSX:HSE) & Cenovus (TSX:CVE) Energy Stocks Trend Post Merger & Q3 Results

Husky Energy Inc (TSX:HSE)

Current Stock Price: C$3.5

Shares of energy company Husky Energy Inc are among the most active stocks on the Toronto Stock Exchange for their heavy volume trading activities. In the last 10 days, the scrips accumulated an average moving volume of 5.8 million.

Back in September, Husky Energy announced that it had to pull the brakes on its West White Rose offshore oil project due to various challenges put forth by the coronavirus pandemic. The company sought help from the federal and provincial governments of Newfoundland and Labrador for a direct investment in order to finish the project. The C$ 2.2-billion-project was about 60 per cent complete as of September.

However, after the recent merger with Cenovus Energy, there have been reports of Husky Energy’s West White Rose project possibly being cancelled.

HSE STOCK PERFORMANCE

Husky Energy stocks are down over 66 per cent this year. Their price tumbled to a low of C$ 2.4 (March 18) amid the coronavirus-led market crash.

Since their March lows, Husky Energy scrips registered a decline of over 14 per cent in the last six months and nearly 26 per cent in three months.

HSE THIRD QUARTER RESULTS

Husky Energy posted its 2020 third quarter results on Thursday, October 29. It reported generating funds worth C$ 148 million from operations in Q3 2020, down from C$ 1 billion in Q3 2019. It also incurred a net loss of C$ 7 billion in its third quarter ending 30 September 2020.

The company’s capital expenditures stood at C$ 354 million in Q3 2020, while its net debt at the end of the third quarter was C$ 5.4 billion.

Its cash flow from operating activities amounted to C$ 79 million in the latest quarter, substantially down from C$ 800 million in Q3 2019.

Husky Energy pays a quarterly dividend of C$ 0.013, which currently has a dividend yield of 1.429 per cent, as per the data on the TMX Group.

Cenovus Energy Ltd (TSX:CVE)

Current Stock Price: C$ 4.4

Cenovus Energy announced its plans to reduce its workforce by 20 to 25 per cent recently, following its purchase of Husky Energy. Most jobs cuts are expected to be in Calgary, where the company is based. The company said the workforce reduction is taking place in order to avoid overlap of roles in the light of its acquisition of Husky Energy.

The two companies are set to become the third largest oil and natural gas producer in Canada and lead to about C$ 1.2 billion in savings, Cenovus Energy said in a statement.

CVE STOCK PERFORMANCE

Stocks of Cenovus Energy recorded a drop of over 66 per cent this year. After plummeting during the March market crash, its shares fell nearly 12 per cent in the last six months.

Cenovus scrips registered a decline of over nine per cent in October. In the last 10 days, its stocks saw an average share trading volume of 8.9 million.

CVE THIRD QUARTER RESULTS

Cenovus Energy also posted its third quarter financial results on Thursday, October 29. It reported free funds flow of C$ 266 million in its third quarter ending 30 September 2020. The company said that this amount helped reduce its net debt down to C$ 7.5 billion at the end of the quarter.

The Calgary-based energy company’s cash from operating activities was amounted to C$ 732 million in Q2 2020, down 12 per cent from C$ 834 million in Q3 2019.

Cenovus Energy bore an operating loss of C$ 452 million and a net loss of C$ 194 million in the third quarter of 2020. These amounts stood is comparison with operating earnings of C$ 284 million and net earnings of C$ 187 million, respectively, in Q3 2019.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.