Cenovus Energy reports $220M first-quarter profit compared with a loss a year ago
Company says layoffs from Husky Energy merger about two-thirds complete
Cenovus Energy reported a profit of $220 million in its latest quarter compared with a loss of $1.8 billion a year ago.
The energy company says the profit amounted to 10 cents per share for the quarter ended March 31 compared with a loss of $1.46 per share in the first three months of 2020.
Revenue totalled $9.15 billion, up from $3.96 billion in the same quarter last year before the company acquired Husky Energy.
Upstream production was 769,254 barrels of oil equivalent per day, up from 482,594 boepd a year ago, while downstream throughput was 469,100 barrels per day, up from 221,100 bpd in the same quarter last year.
Cenovus says it had $245 million in one-time integration costs in the quarter related to its acquisition of Husky and that total integration costs for the year are expected to be within the anticipated $500-million to $550-million range.
It says it completed two-thirds of its planned workforce reductions in the first quarter, with the rest expected later in the year and into 2022 as integration projects wrap up.
Cenovus has said that 20 to 25 per cent of the combined workforce would face job cuts.
The majority of the layoffs of 1,720 to 2,150 positions have been expected to take place in Calgary, where the two firms are headquartered.
"Since the closing of this transaction, we've had to make difficult decisions about workforce reductions as we drive to deliver on our planned synergy targets," Cenovus CEO Alex Pourbaix said Friday on a call with analysts.
"I'd like to acknowledge the professionalism and contribution of Cenovus's people through this period, including those who have left the company."
With files from Tony Seskus, CBC News