(File Photo: Cenovus’ Christina Lake project, located about 150 kilometres outh of Fort McMurray)
While production is up by twenty per cent in the oilsands Cenovus took a big hit to the pocket book in the first quarter as net earnings fell 370 per cent.
It posted net losses of $668 million in the first quarter down from a $247 million profit in 2014.
Over the next 18 months Cenovus plans to add about 100,000 barrels per day (bbl/d) in production in the oilsands alone through expansion work at Foster Creek and Christina Lake.
Oilsands production totalled 144,372 bbl/d in the first quarter.
Cenovus cut costs in the first quarter by slashing its workforce by fifteen per cent, most of the job cuts were to contractors.
It also delayed executive and employee salary increases for 2015.
Capital spending was down about 36 per cent to $529 million in the first quarter.
Production at Christina Lake averaged 76,471 bbl/d which is up 16 per cent from last year, while Foster Creek was 24 per cent higher to 67,901 bbl/d.
Cenovus invested $207 million dollars at Christina Lake as it continues its expansion on Phase F.
Plant construction is mostly complete and first oil from the phase is expected in the second half of 2016.
The board declared a second-quarter dividend of $0.2662 per share.
