Cenovus Energy Inc. News:
Cenovus Energy Inc. recently faced a significant setback as it reported a sharp decline in second-quarter profit. The company’s operations were severely affected by the wildfires that ravaged Canada’s main oil-producing province, Alberta, leading to output curtailments across the region. Consequently, Cenovus had to lower its total production outlook for the year 2023.
The company lowered its estimated production range to between 775,000 and 795,000 barrels of oil equivalent per day (boepd), down from the earlier projection of 790,000 to 810,000 boepd. The wildfires had a significant impact on the company’s operations, leading to a 64% decline in second-quarter profit compared to the previous year.
Cenovus Energy reported a net income of C$866 million for the quarter ending on June 30, compared to C$2.43 billion for the same period the previous year. Earnings per share stood at 44 Canadian cents, a notable decrease from the C$1.19 per share reported a year earlier. It’s worth mentioning that despite the decline in profit, the company’s reported earnings per share of 44 Canadian cents still managed to surpass analysts’ expectations of 41 Canadian cents.
One critical financial aspect that investors and analysts are closely monitoring is the company’s net debt, which stood at C$6.4 billion as of June 30.
Cenovus Energy Inc Stock Forecast:
According to 16 analysts, the average target price for Cenovus Energy Inc‘s stock over the next 12 months is CAD 29.34, and the average analyst rating is “Buy.” However, Stock Target Advisor’s own analysis of the stock is “Slightly Bearish,” based on 5 positive signals and 11 negative signals. As of the last closing, Cenovus Energy Inc’s stock price was CAD 23.81, representing a +5.73% change over the past week, +9.52% over the past month, and +5.54% over the last year.
Latest Analyst Coverage Changes:
On July 25th, 2023, Desjardins Securities maintains a “Buy” rating for Cenovus Energy Inc. and lowers the target price to $31 from $33 on the company’s stock.
