UPDATE 1-Cenovus slashes dividend, cuts jobs to counter oil price slump

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July 30 (Reuters) - Cenovus Energy Inc CVE.TO , Canada's
No.2 independent oil producer, slashed its quarterly dividend by
40 percent and said it would cut about 300 more jobs as it tries
to keep a lid on costs amidst a slump in oil prices.
The job cuts come months after the company announced a
reduction of 800 jobs, or 15 percent of its workforce.
The company also said it was increasing its cost-cutting
target for the year by 40 percent to C$280 million.
Crude oil prices LCOc1 CLc1 have plunged by about 55
percent in the past year, forcing a number of producers to cut
jobs and lower their spending.
Cenovus currently has two producing projects in the oil
sands - Christina Lake and Foster Creek - both of which are 50
percent owned by ConocoPhillips (NYSE:COP) COP.N .
The primary focus is now on expanding existing oil sands
projects, but at a more moderate pace of growth than in the
past, Cenovus said on Thursday.
Cenovus's cash flow, a key measure of its ability to fund
new projects, dropped 60 percent to C$477 million.
The company slashed its quarterly dividend to 16 Canadian
cents per share from 26.62 Canadian cents. ID:nCNWby7jda
Net income fell to C$126 million, or 15 Canadian cents per
share, in the second quarter ended June 30, from C$615 million,
or 81 Canadian cents per share, a year earlier. ID:nPn2CKXHH
Operating profit, which excludes one-time items, fell 68.1
percent to C$151 million, or 18 Canadian cents per share.
However, it beat the average analyst estimate of 9 Canadian
cents per share, according to Thomson Reuters I/B/E/S, helped by
a 30 percent fall in oil sands operating expenses.
Shares of Cenovus, which have fallen nearly 24 percent this
year, closed at C$18.61 on the Toronto Stock Exchange on
Wednesday.