Cenovus Energy Inc. had a $418-million second-quarter loss that was deeper than analysts expected, largely the result of a hedging program that was designed to protect the company from a decline in oil prices.
The Calgary-based company’s loss amounted to 34 cents per share, including discontinued operations, and compared with a year-earlier profit of $2.62 billion or $2.35 per share.
Last year’s second quarter included a $1.9-billion gain from the re-valuation of an existing asset.
Cenovus said its hedging program incurred losses in the second quarter when its realized settlement prices were above prices set out in contracts that have now expired.
Its operating loss from continuing operations was also bigger than expected, at $292 million or 24 cents per share.
Analysts had estimated an operating profit of three cents per shares and a net loss of one cent per share, according to Thomson Reuters Eikon.
Revenue was above analyst estimates at $5.83 billion, up from $4.04 billion in the second quarter of 2017.