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Cenovus Energy Inc swung to a quarterly loss on Wednesday, hurt by a significant decline in global demand for crude oil caused by the coronavirus outbreak and a price war between Saudi Arabia and Russia.
The crash in global crude prices has dragged down oil producers’ stocks and forced companies to adopt cost-cutting strategies, with Cenovus suspending its dividend, cutting full-year spending, slashing output and pausing its crude-by-rail program.
While total production rose 8 per cent to 482,594 barrels of oil equivalent per day (boepd) as Canada’s main crude-producing Alberta province eased production cuts, Cenovus said prices for its crude declined 54 per cent to $22.74 per barrel in the first quarter from a year earlier.
Net loss stood at $1.80 billion, or $1.46 per share, in the first quarter ended March 31, compared to a profit of $110 million, or 9 cents per share, from a year earlier.
© Thomson Reuters 2020
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