Cenovus Boosts Production Outlook on Strong Oil Sands Performance

Cenovus Energy has raised its annual production outlook due to strong oil sands performance. The company, which is based in Calgary, reported a rise in quarterly profit driven by higher oil prices and record oil sands output. Cenovus increased its full-year upstream production forecast by 25,000 barrels of oil equivalent per day (boepd) to between 970,000 and 1.01 million boepd.

The company's total upstream production was 970,400 barrels of oil equivalent per day (boepd) in the three months ended June 30, up from 765,900 boepd a year earlier. This increase was attributed to stronger-than-expected performance across its oil sands assets and optimized turnaround activity.

Cenovus' net income rose to $2.87-billion or $1.53 per share in the second quarter, from $851-million, or 45 cents per share, a year earlier. The company's improved earnings were also driven by the Iran war, which has tightened supply and raised oil prices.