Cenovus Energy Inc T.CVE.WT

unexpected weaker Q2 US refining margins being reported...

[downwithdotcom1]

looks like refining could be a drag on earnings YET AGAIN....getting a little tired of this. CVE keeps selling the story that its part of their VALUE ADDED model - you mostly supply the cheaper (heavy) oil etc input and out comes all sorts of refined products at a higher dollar output but margins are looking rather anemic for Q2 ..see link below...dwdc




US refiners’ Q2 profits fall on low margins, soft fuel demand | BOE Report

[Margin321]

I did not expect that. But in case of CVE thelast year Q2 was weaker than for some others. Meaning the comparisons will not be as bad as for soem of the examples mentioned. And oil prices higher and discount for west canada crude less. We only have until next Thursday (8 dyas)  for quarter report, so we will know soon enough how the quarter numbers played out.  I just hope they finally

[PabloLafortune]

CVE heavy oil is 6x MEG so profitability / cashflow should be 6x as well. It barely is even though they have US refining, Cdn refining, Cdn gas assets and offshore. First things first, CVE is an oil sands producer. That part of the business needs to get more profitable, changes need to be made. Second, they need to unload Asian & Cdn offshore. Not core at all. Will get money from it too

[ztransforms173]

- CVE has a HIGHER CAPITAL EFFICIENCY {the BEST in the Canadian oil space} than MEG for EACH MARGINAL barrel INCREASE in BOP - however, MEG has the LOWEST OPERATING EXPENSE per UNIT of BOP in Canada * the COMPOSITE OPERATING COST per unit BOP of Cenovus Energy is SUBSTANIALLY HIGHER than MEG although both Chistina Lake and Foster Creek hace VERY COMPETITIVE OPERATING COSTS due to their INDUSTRY

[downwithdotcom1]

just reported...Valero Energy sees Q2 net income cut in half mostly as a result of a drop in refining operating income by 50%...sounding like a bit of a broken record for current refining margins..don't kill the messenger...dwdc