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CEO Brian Ferguson of Cenovus prepares his speech before the company's annual general meeting in Calgary, Alberta, April 30, 2014. (TODD KOROL/REUTERS)
CEO Brian Ferguson of Cenovus prepares his speech before the company's annual general meeting in Calgary, Alberta, April 30, 2014. (TODD KOROL/REUTERS)

Cenovus profit triples as oil sands production jumps Add to ...

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.

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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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