Cenovus Energy 3Q Profit Rises On Higher Output

By Adriano Marchese

Cenovus Energy profit jumped on the back of strong output in the third quarter.

The Canadian energy company on Friday posted a higher net income of 1.29 billion Canadian dollars ($922.3 million), or C$0.72 a share, up from C$820 million, or C$0.42 a share, in the comparable quarter a year ago.

According to FactSet, analysts were expecting C$0.51 a share.

Adjusted funds flow, a key metric that measures the cash generated by a company's core operations, excluding non-cash items and other one-off items.

Revenue came in at C$13.2 billion, just below analyst expectations of C$13.31 billion. In the third quarter of last year, the company reported revenue of C$14.2 billion.

In its U.S. refining segment, crude throughput came to 605,300 barrels a day. Upstream production reached 832,900 barrels of oil equivalent a day, up from 771,300 a day a year ago, of which about 642,800 a day were from the oil sand segment. Analysts were expecting total production of about 830,500 barrels a day.

Cenovus Energy recently reached a deal to acquire MEG Energy in a strategic move to expand its oil sands portfolio. The agreement included the divestiture of certain assets to Strathcona Resources, which was also in the running to acquire MEG. This proposed transaction, which will finally be voted on by MEG shareholders on Nov. 7, aims to consolidate Cenovus's position in thermal oil production in the competitive landscape of Canadian oil patch.

For the full year, Cenovus lowered its output guidance to reflect the disposal of its 50% stake in WRB Refining LP, a joint venture with Phillips 66. It now expects downstream throughput of 510,000 barrels a day to 515,000 barrels a day, which represents a decrease of 52,500 barrels a day at the midpoint.

Downstream turnaround expenses are now pegged at of $360 million to $380 million, lowered by $65 million at the midpoint.

Write to Adriano Marchese at adriano.marchese@wsj.com

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October 31, 2025 06:52 ET (10:52 GMT)