Cenovus Energy has reported net earnings of C$146m for the fourth quarter of 2024 (Q4 2024), a significant drop from C$820m in the previous quarter.
The company's total revenues for Q4 were C$12.8bn, down from C$13.8bn in the previous quarter. This decline was primarily driven by lower commodity prices.
Despite the revenue decrease, upstream business revenues remained stable at C$7.3bn, while downstream business revenues fell to C$7.8bn from C$8.8bn in the prior quarter.
However, the company faced challenges including a downstream operating margin shortfall of C$396m, attributed to weak refining crack spreads and a narrow heavy oil price differential.
Cenovus Energy's upstream business demonstrated strong performance with a production rate of 816,000 barrels of oil equivalent per day (boepd) in Q4, including record oil sands production of 628,500boepd.
The offshore segment also registered an increase in production, reaching 69,700boepd compared with 65,500boepd in Q3.
In the downstream sector, Cenovus achieved a total crude throughput of 666,700 barrels per day (bpd), up from 642,900bpd in the previous quarter.
Throughout 2024, Cenovus Energy's total upstream production averaged 797,200boepd, an increase from 778,700boepd in 2023.
This growth includes record annual volumes from oil sands assets and a 5% rise in offshore volumes.
Downstream throughput averaged 646,900bpd in 2024, a 15% increase from 560,400bpd in 2023.
Cenovus Energy's total revenues for 2024 were C$54.3bn, with an operating margin of C$10.8bn.
This compares with revenues of C$52.2bn and an operating margin of C$11.0bn in 2023.
The rise in revenues was largely due to higher production and narrowing heavy Canadian crude differentials following the Trans Mountain pipeline expansion project.
Cash from operating activities amounted to C$9.2bn for 2024, up from C$7.4bn in 2023.
Total capital investment for 2024 was C$5bn, focusing on sustaining production at upstream assets, major growth projects and refining reliability initiatives.
Cenovus Energy's full-year net earnings for 2024 were C$3.1bn, down from C$4.1bn in 2023.
This decline was primarily due to lower commodity prices, foreign exchange losses and higher expenses.
