Cenovus Energy on Wednesday posted an 83 per cent jump in first-quarter profit, driven by higher crude prices, strong refining margins and increased production following its acquisition of MEG Energy.
The Canadian oil and gas producer also said it would raise its quarterly base dividend by 10 per cent to 22 Canadian cents per share starting in the second quarter.
Cenovus's acquisition of MEG Energy last year strengthened its oil sands portfolio, adding Christina Lake assets and boosting its position as one of Canada's largest heavy oil producers.
Total upstream production rose to a record 972,100 barrels of oil equivalent per day (boepd) in the first quarter, up 19 per cent from a year earlier, driven in part by strong performance at Christina Lake and addition of other MEG assets.
In refining, total downstream operating margin stood at CA$734 million ($539.94 million) in the quarter, compared with last year's loss of CA$237 million, supported by stronger fuel prices and high utilisation.
Refinery utilization rate was 97 per cent in the quarter, with crude throughput at about 458,500 barrels per day.
Integrated oil companies such as Cenovus are gaining from a global fuel market disrupted by the Iran war, which has tightened supply, pushed up oil prices and boosted earnings from both oil production and refining.
At the company's West White Rose offshore project, commissioning and testing are complete and drilling has begun, with first oil expected in the third quarter of 2026.
The Calgary, Alberta-based company's net earnings rose to CA$1.57 billion, or 83 Canadian cents per diluted share, in the three months ended March 31, from CA$859 million, or 47 Canadian cents per share, a year earlier.
(Reporting by Khusbu Jena in Bengaluru; Editing by Leroy Leo)
