Cenovus Energy posts profit on rising output, doubles dividend
Nov 3 (Reuters) - Cenovus Energy Inc said on Wednesday it would double its dividend and buy back shares after the oil and gas producer posted a quarterly profit, compared with a year-ago loss, on the back of rising production and oil demand recovery.
Investors have lapped up shares of companies that have used excess cash for dividends and buyback, rather than fund growth.
Shares of peer Suncor Energy Inc climbed as much as 10% last week after the second largest Canadian producer said that it would double its dividend and buy back more shares than it had previously planned.
Cenovus said it would buyback up to 146.5 million shares, or about 10% of its public float, as it expects to achieve its interim net debt target of below $10 billion imminently.
Total upstream production stood at 804,800 barrels of oil equivalent per day (boepd) in the quarter, up 70.6% from a year ago.
Downstream throughput, or the amount of crude it processed, also nearly tripled to 554,100 barrels per day, from a year ago.
In the company's downstream operations, the Lloydminster Upgrader and Lloydminster Refinery achieved an average quarterly crude oil utilization rate of 98%, while the U.S. refineries' crude oil utilization rate was 89%.
The Calgary, Alberta-based company posted a net income of C$551 million ($443.78 million), or 27 Canadian cents per share, in the third quarter ended Sept. 30, compared with a loss of C$194 million, or 16 Canadian cents per share, in the year-ago quarter. ($1 = 1.2416 Canadian dollars) (Reporting by Sahil Shaw in Bengaluru; Editing by Shailesh Kuber)
