Cenovus Energy takes $450M charge on Texas refinery, reports $194M Q3 loss

Photo: Cenovus

Cenovus Energy Inc. reported a loss in its third quarter as its results were hit by a $450-million impairment charge related to a refinery it co-owns with Phillips 66 in Texas and lower oil prices due to the pandemic.

The Calgary-based company says it lost $194 million or 16 cents per diluted share in the quarter ended Sept. 30 compared with a profit of $187 million or 15 cents per diluted share a year ago.

Cenovus says its adjusted funds flow amounted to $414 million or 34 cents per share compared with $928 million or 76 cents per share a year ago.

Total production in the quarter was 471,799 barrels of oil equivalent per day, up from 448,496 in the same quarter last year.

Cenovus announced on the weekend a friendly deal to buy Husky Energy for $3.8 billion in shares.

It has said it will look to cut between 20 and 25 per cent of the 8,600 employees and contractors currently working at the two companies if it is successful in its takeover.