Cenovus Energy sees profits fall by 39.5%

by on July 25, 2012 11:30 am BST

The Canadian explorer cited decreased unrealized risk
management gains, an increase in depreciation, depletion and amortisation and a
$68 million exploration expense as factors in the 39.5% drop.

Most of the exploration charge was over the company’s
decision to quit exploring its Roncott asset in the Bakken.

The company also hiked capital investment by 39% to $660
million over the year-ago period to expand oil assets.

Total oil production
rose 28% to 155,566 barrels per day from 121,762 barrels in the same period
last year, while natural gas production decreased 9% to 596 million cubic feet
per day.

The company did not state its total production for the period.

The Toronto- and New York-listed company also revealed
meanwhile it had stopped calling for partners to its Telephone Lake oil sands

“We only wanted a deal if it would add compelling value for
our shareholders,” commented chief executive Brian Ferguson. “There was never a
financial need to do a transaction…We look forward to developing the asset on
our own,” he said.

You can read the company’s full results statement here [opens in .pdf format].