Cenovus Energy Inc T.CVE

Please correct me if this is not correct

[soundandfury]

If they had not taken the $1.9 billion charge...........cve would have had earnings in 2021 of about $1.27 per share.........and would have had to pay $ 500 millions in federal income tax...........therefore by takeing the charge they basically let trudeau pay for the millions needed to fix , maintain and even pay for future repairs for years to come

[RagingBull3]

Sounds about right....   But there MUST/Should be a Valid reason for the Charge.... So at face value, it's a valid "valuation/cost/expense".....  You depreciate your car every year.....Because it wears down and become less valuable.    If you hit a pot hole and blow your transmission, you write down it even more.   It's a loss unless insurance

[oilandgasmick]

Exactly--Impairments and depreciation lower your tax payable. Doesn't Ottawa owe the oil industry some kind of cash refund?

[mrbb]

i would say about half of the impairment write off is tax not paid, assuming ~ 50% tax bracket at that level.