Cenovus Energy posts $267-million loss in Q2

Cenovus Energy Inc.posted a $267-million loss in the second quarter but says it's on track to cut its costs by about half a billion dollars this year, compared with the original 2016 budget.

The Calgary-based oil producer and refiner says its per-barrel operating costs have been reduced by 24 per cent at its oilsands operations and by nine per cent at is conventional crude operations.

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The company's net loss for the quarter was equal to 32 cents per share and compared with a year-earlier profit of $126 million or 15 cents per share.

A large part of the loss was related to Cenovus's risk-management strategies, currency fluctuation and an operating loss of $39 million or five cents per share, compared with $151 million or 18 cents per share of operating earnings last year.

Cenovus also completed a workforce reduction program in the second quarter, and recorded $19 million in severance costs.

Since the end of 2014, when oil prices began to tumble, Cenovus has cut about 31 per cent of its workforce.