Cenovus Energy reported a net profit of $851mn for the second quarter of 2025, compared to $859mn in the previous quarter, demonstrating strong financial discipline and continued commitment to its strategic investments. Cash flow from operating activities reached $2.4bn, while free cash flow amounted to $355mn, despite lower oil prices and certain production interruptions.
Operational control in the face of production challenges
Total upstream production reached 765,900 barrels of oil equivalent per day (boe/d), compared to 818,900 boe/d in the first quarter, affected by planned maintenance at Foster Creek and Sunrise, as well as a temporary interruption due to a wildfire at Christina Lake. The rapid restart of production at this site helped limit the impact of the incident on quarterly volumes.
Lloydminster’s thermal facilities produced 97,800 barrels per day, down after a technical failure at Rush Lake. The company secured the affected well and is working on a restart plan. Conventional production stands at 119,800 boe/d, with a slight decrease due to third-party outages.
Refining performance and acceleration of growth projects
On the downstream side, overall refinery utilisation rate stood at 92%, supported by throughput of 665,800 barrels per day. The Toledo site completed its planned shutdown eleven days ahead of schedule, minimising the impact on processed volumes. Revenues from refining amounted to $7.7bn, stable quarter-over-quarter despite a tight margin environment.
On the strategic project front, Cenovus achieved several key milestones: Narrows Lake produced its first barrel in July, with ramp-up expected by year-end; at Foster Creek, the commissioning of four new boilers added 80,000 barrels per day of steam capacity; the West White Rose project is now 92% complete with the installation of the gravity structure and topsides, with drilling scheduled to begin by year-end.
Financial optimisation and shareholder returns
The company returned $819mn to shareholders during the quarter, through share buybacks and dividends, while slightly reducing its net debt to $4.9bn as of 30 June 2025. The revised annual guidance now targets upstream production between 805,000 and 825,000 boe/d, with confirmed investments in the $4.6bn-$5.0bn range. Maintenance costs are expected to be below initial expectations thanks to accelerated completion of planned shutdowns.
According to President and Chief Executive Officer Jon McKenzie, the successful delivery of major industrial projects and effective operational management illustrate Cenovus’s strategic positioning as it prepares to commission new major assets.
