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Cenovus, however, said it continues to see long-term value in the U.S. manufacturing business, including reduced cash flow volatility due to the company’s integrated heavy oil value chain.
The U.S. manufacturing unit, which includes Lima, Superior and Toledo refineries, reported a net operating loss of C$97 million in the fourth-quarter compared with consensus estimates of a profit of C$15 million, according to Credit Suisse (SIX:CSGN).
Cenovus, which agreed to buy rival Husky last year to create Canada’s No. 3 oil and gas producer said total production stood at 825,300 barrels of oil equivalent per day (boepd) in the quarter, up from 467,202 boepd a year earlier.
Downstream throughput, or the amount of crude processed, rose 469,900 barrels per day (bpd) from 169,000 bpd.
Cenovus, which has set an interim net debt target of C$10 billion, said it was below C$9.6 billion at year end.
The Calgary Alberta-based company reported a net loss of C$408 million, or 21 Canadian cents, for the fourth-quarter ended Dec. 31, compared with a loss of C$153 million, or 12 Canadian cents per share, a year earlier.
Rivals Imperial Oil (NYSE:IMO) Ltd and Suncor Energy (NYSE:SU) Inc both missed quarterly profit expectations last week.
($1 = 1.2692 Canadian dollars)
(This story corrects net operating loss to C$97 mln, not C$9 mln, and consensus estimates in paragraph 3)
