Cenovus Energy Inc. reported a first-quarter profit that increased compared with the same period last year, and the company announced it is raising its base dividend by 10 per cent.
Financial Highlights
The Calgary-based oil and gas producer said its net earnings for the quarter ended March 31 were $1.2 billion, up from $1.0 billion in the first quarter of 2025. The increase was driven by higher production and improved refining margins, partially offset by lower crude oil prices.
Cenovus said its upstream production averaged 808,000 barrels of oil equivalent per day in the first quarter, up from 789,000 boe/d in the same period last year. The company's downstream operations also performed well, with refinery throughput averaging 446,000 barrels per day.
Dividend Increase
The company announced it is increasing its base quarterly dividend by 10 per cent to 22 cents per share, up from 20 cents per share. The dividend is payable on June 30 to shareholders of record as of June 15.
"Our strong operational performance and disciplined capital allocation have allowed us to deliver increased returns to shareholders," said CEO Jon McKenzie in a statement. "We remain focused on executing our strategy and generating sustainable free funds flow."
Outlook
Cenovus said it expects to continue generating strong free funds flow in 2026, supported by its integrated business model and cost reduction initiatives. The company plans to invest $4.0 billion to $4.5 billion in capital expenditures this year, with a focus on sustaining production and advancing growth projects.
Shares of Cenovus Energy were up 1.2 per cent in morning trading on the Toronto Stock Exchange.
