Canadian integrated oil and natural gas company, Cenovus Energy, announced a decrease in earnings and production on Thursday, attributing the decline to the impact of Alberta wildfires during the summer.
Cenovus reported lower net earnings of 866 million Canadian dollars ($655.6 million), or C$0.44 a share, compared with C$2.43 billion, or C$1.19 a share. Analysts had anticipated a decline in earnings, but expected it to be more significant at C$0.40 per share.
Total upstream production reached 729,900 barrels of oil per day, down from 761,500 barrels per day the previous year. This missed analysts’ expectations of 740,100 barrels per day. The decline in production was primarily attributed to a planned turnaround at Foster Creek in Alberta and production issues in the conventional segment due to wildfire activity in May and June.
Cenovus generated cash from operating activities of C$1.99 billion during the reporting period, down from C$2.98 billion the previous year.
While the decrease in earnings and production was expected, the impact of Alberta wildfires has resulted in a more significant decline than initially projected.