Cenovus Energy’s third quarter was better than expected because of record production and high refinery use.
The company said that its net income rose to C$1.29 billion, or 72 cents per share, on sales of C$13.2 billion.
Cash from operations was about C$2.1 billion, with adjusted funds flow of C$2.5 billion and free funds flow of C$1.31 billion.
Upstream production was 832,900 barrels of oil equivalent per day, and downstream crude throughput was 710,700 barrels per day on average, with a 99% utilization rate.
In a company release, Cenovus announced its third quarter 2025 results. The company also said that higher commodity prices and wider refining crack spreads were helping the business.
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As volumes went up, CEO Jon McKenzie said the company stayed focused on safety and efficiency.
In a press release, Jon McKenzie, the CEO, said, “This quarter, we delivered record volumes in both our Upstream and Downstream businesses.”
The company gave back C$1.3 billion to common shareholders, which included C$918 million in share buybacks and C$356 million in dividends.
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As of September 30, Cenovus had C$5.3 billion in net debt, and the company said it wanted to keep its net debt at C$4.0 billion for the long term.
The output of oil sands rose to about 642,800 barrels per day. This was helped by a ramp at Christina Lake, where Narrows Lake volumes started to contribute after a second quarter wildfire related shutdown.
Utilization in refining reached 99%, with 605,300 barrels per day across the US system. Operating costs per barrel, not including turnaround costs, fell from the previous quarter.
Portfolio changes also helped the balance sheet. Cenovus sold its 50% stake in WRB Refining LP on September 30 and got C$1.8 billion in cash on October 1.
The company is still on track to keep its debt under control while paying for important projects and giving investors back extra money, according to management.
Management talked about late stage growth work that will help keep higher volumes going until 2026. The Foster Creek optimization moved forward with the addition of four new steam generators.
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The West White Rose project is almost ready to start up, with the first oil expected in the second quarter of 2026.
After the end of the quarter, Cenovus announced a new deal to buy MEG Energy. A vote by shareholders is set for November 6, and the deal is expected to close in mid-November, pending approvals.
Premier Danielle Smith proposed a new oil pipeline to the B.C. coast as producers think about their long term needs for getting oil out of the province.
Global supply trends have been strong, as shown by the fact that global crude exports are on track to hit a record high in October. This is a backdrop that can affect Canadian differentials and the economics of refining.
