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Shares of Cenovus Energy Inc. were higher after it said on Thursday it expects higher production from its U.S. refineries in 2024 as the Canadian company’s two refineries restarted operating at full capacity.
The company had been grappling with production snags following a deadly fire at its refinery in Toledo, Ohio last year and an explosion at the refinery in Superior, Wisconsin in 2018.
Cenovus forecast downstream throughput for 2024 between 630,000 and 670,000 barrels per day (bpd), compared with 580,000 bpd to 610,000 bpd expected this year.
Cenovus also expects higher operating costs in 2024 due to maintenance and repair activities.
The Calgary-based company forecast expenses between $4.5-billion and $5-billion in 2024, higher than its estimated 2023 costs of $4-billion to $4.5-billion.
“We will remain focused on reducing costs and continued capital discipline,” Cenovus CEO Jon McKenzie said.
Global oil prices have cooled compared with last year, but still remain at a level when companies can drill profitably.
Cenovus also said it plans to expand production at its Foster Creek, Christina Lake and Sunrise oil sands projects.
The company forecast total upstream production for 2024 between 770,000 and 810,000 barrels of oil equivalent per day (boepd), compared with 775,000 boepd to 795,000 boepd expected this year.