logo-loader
viewCenovus Energy Inc

Cenovus Energy cuts dividend 40%, to eliminate 400 jobs

oil_rig_platform_350_55ba7048a62ae.jpg
The company has been slashing costs as it deals with the drop in oil prices. Cenovus said it expects to reduce expenses by about $280 million this year compared with its earlier target of $200 million.

Cenovus Energy (TSE:CVE), Canada’s second largest independent oil producer, contending with lower oil prices, slashed its dividend by 40 percent and said it was accelerating its cost-cutting efforts, including cutting up to 400 jobs in its Calgary offices. Shares advanced.

The Calgary-based company said it will now pay a quarterly dividend of C$0.16 per share, down from its earlier rate of C$0.2662.

Cenovus also ended the 3 percent discount shareholders received if they participated in the company's dividend reinvestment plan.

The company has been slashing costs as it deals with the drop in oil prices. Cenovus said it expects to reduce expenses by about $280 million this year compared with its earlier target of $200 million. 

"We've taken a number of decisive steps to help ensure financial resilience during a prolonged period of lower oil prices," chief executive officer Brian Ferguson said in the statement. "As a result of these initiatives and the operational progress the company has made, we are now in an even stronger position to remain cost competitive and potentially resume investing in high-return growth projects."

Cenovus, which cut about 800 positions earlier this year, has over 3000 employees, not including contractors.  

The cuts come as Cenovus reported a second-quarter profit of C$126 million, or C$0.15 per share, down from C$615 million, or C$0.81 per share, a year ago.

Revenue, net of royalties, fell to C$3.73 billion, down from C$5.42 billion.

Shares added 1.8 percent to C$18.95 at 2:25 p.m. in Toronto, paring this year’s slump to 21 percent.

 

 

Quick facts: Cenovus Energy Inc

Price: 11.96 CAD

TSX:CVE
Market: TSX
Market Cap: $14.7 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Learning Technologies surges as it raises full-year guidance

Learning Technologies Group (LON:LTG) Jonathan Satchell talks Proactive London through it's remarkable delivery of organic revenue growth on a constant currency basis in both the Software & Platform and Content & Services divisions. And what a difference a year makes...2020 sees LTG...

13 hours, 52 minutes ago

2 min read