(Reuters) - Cenovus Energy Inc (TO:CVE) (N:CVE) reported its third straight quarterly loss on Thursday, just days after announcing a buyout of rival Husky Energy Inc (TO:HSE), as the pandemic-driven oil crash continues to weigh on the oil industry.
The COVID-19 crisis has added to the woes of Canada's energy sector, under stress since the last downturn in 2014, and is forcing companies to look to consolidation, job cuts and cost savings.
Cenovus kicked off consolidation in the Canadian energy patch with a $3.6 billion deal to buy Husky, and said it plans to cut up to a quarter of the combined workforce.
Cenovus said total quarterly production rose 5.2% to 471,799 barrels of oil equivalent per day (boepd), despite Alberta's mandatory caps, as it used output from oil sands and curtailment credits purchased from other companies.
Alberta will lift curbs on crude production ahead of schedule at the start of December, as coronavirus-related shutdowns ease pipeline congestion.
Cenovus in the third quarter took an impairment charge of C$450 million ($341.27 million) associated with the Borger, Texas refinery it co-owns with Phillips 66 (N:PSX), reflecting reduced demand for refined products in the current market scenario.
The Calgary, Alberta-based company recorded a net loss of C$194 million or 16 Canadian cents per share, for the third quarter ended Sept. 30, compared with a year-ago profit of C$187 million, or 15 Canadian cents per share.
Husky Energy on Thursday reported a third quarter net loss of C$7.08 billion compared with a year-ago profit of C$273 million, hurt by a non-cash impairment of C$6.7 billion related to lower long-term oil price assumptions and reduced capital investment.
