Cenovus looking to cut jobs, slashing dividend by 40 per cent
In this file photo, Brian Ferguson, President and CEO of Cenovus, speaks at the company's annual general meeting in Calgary, Alta., on Apr. 29, 2015. (Larry MacDougal / THE CANADIAN PRESS)
The Canadian Press
Published Thursday, July 30, 2015 8:26AM EDT
Last Updated Thursday, July 30, 2015 9:49AM EDT
CALGARY -- Cenovus Energy Inc. (TSX:CVE) says it's looking to cut between 300 to 400 jobs in the second half of this year, and is chopping its quarterly dividend by 40 per cent.
The energy company says it will now pay a quarterly dividend of 16 cents per share, down from its earlier rate of 26.62 cents.
Cenovus also ended the three per cent discount shareholders received if they participated in the company's dividend reinvestment plan.
The company has been slashing costs as it deals with the drop in oil pries. Cenovus said it expects to reduce expenses by about $280 million this year compared with its earlier target of $200 million.
The cuts come as Cenovus reported a second-quarter profit of $126 million or 15 cents per share, down from $615 million or 81 cents per share a year ago.
Revenue, net of royalties, fell to $3.73 billion, down from $5.42 billion.