Cenovus Energy Inc, Canada’s No.2 independent oil producer, said its second-quarter profit more than tripled, helped by increased production at its Christina Lake oil sands project in northern Alberta.
The company’s net income rose to C$615-million ($566-million), or 81 Canadian cents per share, in the quarter ended June 30, from C$179-million, or 24 Canadian cents, a year earlier.
Oil sands production at the Christina Lake project jumped 77 per cent to average nearly 68,000 barrels per day (bpd) in the quarter. Total oil sands production rose by a third to average almost 125,000 bpd.
Operating profit, which excludes most one-time items, rose 85 per cent to C$473-million, or 62 Canadian cents.
Cenovus operates two oil sands projects, Foster Creek and Christina Lake, as joint ventures with ConocoPhillips, and is developing a third project called Narrows Lake in northern Alberta. It also holds a half-interest in two U.S. refineries owned by Phillips 66.
Cenovus’s cash flow, a key indicator of its ability to fund new projects, rose 37 per cent to C$1.19-billion, or C$1.57 per share.
Total oil production rose 18 per cent to 201,688 bpd. Natural gas production fell 5 per cent in the quarter.
Cenovus’s shares, which have risen about 8 per cent this year, closed at C$32.81 on Tuesday on the Toronto Stock Exchange.
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