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NEW YORK -Cenovus Energy Inc. (NYSE:CVE) reported fourth-quarter earnings that fell short of analyst expectations, sending its shares lower in pre-market trading on Thursday.
The Canadian oil and gas producer posted adjusted earnings per share of $0.07 for the quarter, missing the consensus estimate of $0.32 by a wide margin. Revenue came in at $12.8 billion, surpassing expectations of $10.76 billion.
Cenovus said its total upstream production averaged 816,000 barrels of oil equivalent per day in Q4, up 6% from the previous quarter and 1% year-over-year. The company achieved record quarterly oil sands production of 628,500 barrels per day.
However, weaker refining margins and narrower heavy oil price differentials weighed on results. The company reported a downstream operating margin shortfall of $396 million in the quarter.
"We delivered strong operating performance this quarter. Our industry leading Oil Sands assets set production records and our Downstream business continued to demonstrate improvements in reliability and unit costs," said Jon McKenzie, Cenovus President & CEO.
Cenovus shares were down 1.79% in pre-market trading following the earnings release. The stock’s decline suggests investors were disappointed by the earnings miss despite the revenue beat and production gains.
For the full year 2024, Cenovus reported net earnings of $3.1 billion, down from $4.1 billion in 2023. The company attributed the decline to lower commodity prices and higher depreciation expenses.
Cenovus maintained its quarterly dividend of $0.18 per share. The company said it remains focused on operational execution and advancing key growth projects to deliver long-term shareholder value in 2025.
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