World News – CA – Canadian energy companies rack up losses in third quarter as virus slows demand for oil

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Canadian oil and gas producer Suncor Energy Inc posted a quarterly loss on Wednesday, hit by a sharp drop in oil prices due to a pandemic travel restrictions have reduced demand for fuel

Canada’s second-largest oil company has also said it will accelerate previously announced workforce cuts to 15% over the next 18 months as it appears to contain spending

The plunge in global crude prices caused by a pandemic has had a huge impact on North American oil and gas companies, forcing them to take far-reaching measures, including cost and production cuts, suspensions of dividends and the postponement of certain projects, to stay afloat Oil prices fell 4% on Thursday to their lowest level since mid-June, prolonging the sharp drop the day before on the potential impact of new lockdowns of coronavirus on oil demand

Suncor said it produced 616,200 barrels of oil equivalent per day (bpd) in the quarter, up from 762,300 bpd in the last year’s quarter Refinery utilization averaged 87%, up from 100% a year earlier

The Calgary, Alta.-based company reported a net loss of $ 12 million, or 1 cent per share, in the third quarter ended Sept. 30, compared to profit of $ 1.04 billion, or 67 cents per share , a year earlier

Cenovus Energy Inc announced its third consecutive quarterly loss on Thursday, just days after announcing the takeover of rival Husky Energy Inc, as the oil crash caused by the pandemic continues to weigh on the oil industry. COVID-19 crisis has added to the woes of Canada’s energy sector, under stress since the last downturn in 2014, and is forcing companies to look to consolidation, job cuts and cost savings

Cenovus kicked off consolidation in the Canadian energy patch with $ 3.6 billion to buy Husky and announced plans to cut down to a quarter of the combined workforce Cenovus said total quarterly production had grown 52 percent to 471,799 barrels of oil equivalent per day (bepd), despite Alberta’s mandatory caps, as it used oil sands production and reduction credits purchased from other companies

Alberta to lift brakes on crude production ahead of schedule in early December, as coronavirus shutdowns ease pipeline congestion

In the third quarter, Cenovus took a $ 450 million impairment charge associated with the Borger, Texas refinery, which it co-owns with Phillips 66, reflecting the decline in demand for refined products in the current market scenario

The Calgary, Alta.-based company posted a net loss of $ 194 million, or 16 cents per share, for the third quarter ended Sept. 30, compared to profit of $ 187 million a year ago. year, or 15 cents Canadian per share

Husky Energy on Thursday reported a net loss of $ 7 in the third quarter08 billion compared to a profit of 273 million a year ago, penalized by a non-cash depreciation of 6 dollars7 billion linked to lower assumptions long-term oil prices and reduced capital investment

« Non-cash write-downs totaled USD 67 billion (after tax) and were related to lower long-term commodity price assumptions and management’s decision to reduce capital investments. higher discount rates have been used based on a number of market factors and indicators, including the recently announced combination with Cenovus, ”Husky said in a statement

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Cenovus Energy, NYSE: CVE, Husky Energy, oil industry

World news – CA – Canadian energy companies rack up losses in third quarter as virus slashes demand for oil

Source: https://financialpost.com/commodities/energy/canadian-energy-companies-pile-on-losses-in-third-quarter-as-virus-dents-oil-demand

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