Canada’s biggest oil companies continue to report quarterly losses this year as lower crude oil prices and lower refining margins hurt earnings, Calgary reported.
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The novel coronavirus pneumonia epidemic hit Canada’s upstream and downstream sectors seriously, and Canada’s largest oil and gas producer Senkol energy reported third consecutive quarterly losses this year to October 28th.
Suncor Energy reported a net loss of $9 million (C $12 million) in the third quarter, although less than the losses in the previous two quarters, it was still a loss, especially compared with net income of $773 million (C $1035 million) in the third quarter of 2019.
Earlier this year, Suncor cut its dividend by 55% after reporting a first quarter loss.
Suncor Energy said on October 28 that in order to further reduce costs, the company will accelerate the structural layoffs of its employees in the next 18 months, with the layoff rate of about 10% – 15%.
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On October 29, the Canadian oil sands companies, cenovus energy and husky energy, which just announced the merger agreement, also released their third quarter financial reports and also reported their respective losses. Cenovus energy reported a net loss of $145 million (C $194 million) in the third quarter, the third consecutive quarterly loss after a loss of $337 million (C $450 million) was recorded in a refinery jointly owned by cenovus energy and operator Phillips 66 in Borger, Texas.
In the case of husky energy, the company reported a significant net loss of $5.2 billion (C $7 billion) in the third quarter, as a result of lower long-term commodity price expectations and lower capital investment, which resulted in an after tax non cash impairment of $5.0 billion (C $6.7 billion).
“Despite the gradual improvement in oil prices in the third quarter, U.S. refining margins remain low, several refineries have reversed profits, and significant non cash losses caused by long-term commodity price assumptions and declining market indicators, including recently announced transactions,” hasky energy CEO rob Peabody said in a statement
“We believe that the merger with cenovus energy will bring significant long-term value to the company by creating a larger, stronger and more resilient Canadian integrated energy producer,” Peabody added
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