Cenovus Announce 2022 Second-Quarter Financial and Operating Results
Cenovus’s total revenues in the second quarter increased to $19.2 billion from $16.2 billion in the first quarter of 2022, driven by higher average commodity and realized sales prices for the company’s products across the Upstream and Downstream businesses. Upstream revenues were $10.1 billion in the second quarter, compared with $9.7 billion in the previous quarter. Downstream revenues were $10.8 billion in the quarter, compared with $8.2 billion in the first quarter.
Total operating margin3 was nearly $4.7 billion, compared with $3.5 billion in the first quarter. Upstream operating margin4 was more than $3.8 billion, compared with about $2.9 billion in the first quarter. Downstream operating margin4 rose to $847 million in the second quarter from $544 million in the first quarter. The increase was due to U.S. Manufacturing operating margin of $793 million in the quarter, compared with $423 million in the first quarter, driven mainly by strong market crack spreads, which more than doubled from the previous quarter.
Upstream production of 762,000 barrels of oil equivalent per day (BOE/d)1 and downstream throughput of more than 457,000 barrels per day (bbls/d) included the impact of significant planned turnaround and maintenance activities during the quarter. Aligned with the company’s shareholder returns framework, Cenovus delivered more than $1 billion to shareholders in common share purchases under its Normal Course Issuer Bid (NCIB) for the second quarter, in addition to the company’s base dividend.
“We executed on our commitment of returning 50% of excess free funds flow to shareholders in the quarter while maintaining strong operational and financial performance during a period of significant planned turnarounds and maintenance,” said Alex Pourbaix, Cenovus President & Chief Executive Officer. “And we’re well positioned for even better performance in the second half of the year as our assets return to operating at normal rates across the portfolio.”
Second-quarter results highlights
Generated cash from operating activities of nearly $3.0 billion, adjusted funds flow of $3.1 billion, free funds flow of $2.3 billion and excess free funds flow of approximately $2.0 billion.
Reduced long-term debt, including current portion, to $11.2 billion and net debt to $7.5 billion at quarter end.
Released Cenovus’s 2021 environmental, social and governance (ESG) report today, detailing overall sustainability performance and progress on the company’s ESG targets.
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