CC: ANOTHER TOUGH QUARTER In the US REFINING SEGMENT- LIMA Refinery TURNAROUND:
started: EARLY September
finished: just a few DAYS BEFORE the CC
- $ 210 million in FIFO accounting EXPENSE HEADWIND
- $ 100 million in MAINTENANCE CAPEX (mostly for the LIMA refinery)
- RIGHT THERE is a NEGATIVE $310 million in OPERATING MARGIN
- MAKING PROGRESS on refinery RELIABILITY & ASSET UTILIZATION but they are NOT THERE YET
* they DID some GOOD WORK on the Lima COKER
- as the REFINERY goes into a MAJOR TURNAROUND, they REPLACE the PROBLEMATIC UNITS
- they have also HIRED new senior management at the UNIT LEVEL to run the DOWNSTREAM OPERATIONS
- PLUS they are WORKING on CUTTING OPERATING COSTS & INCREASING MARGIN CAPTURE {moving more fuel products to the EASTERN US[PADD1] & Canada}
- it is a NASTY SURPRISE that BP & Husky Energy did NOT OPERATE these 100% owned US refineries at a PEAK OPTIMIZED PERFORMANCE that Cenovus Energy is ATTEMPTING to ATTAIN
z173