11:49 AM EDT, 08/01/2024 (MT Newswires) -- Cenovus Energy ( CVE ) on Thursday reported higher second-quarter earnings and increased its 2024 production guidance.

The oil producer and refiner said its profit in the quarter rose 15% to $1.0 billion, or $0.53 per share, up from $866 million, or $0.44, in the year-prior period but well under the S&P Capital IQ consensus estimate for a profit of $0.68 per share..

Adjusted funds flow for the quarter rose to $2.36 billion from $1.90 billion.

Upstream production increased to 800,800 barrels of oil equivalent per day (boe/d), from 729,900 boe/d. Total downstream throughput also rose to 622,800 barrels per day (b/d) from 537,800 b/d.

Net debt was $4.26 billion as of June 30, and in July the company achieved its net debt target of $4 billion. As a result, Cenovus will start returning 100% of excess free funds flow to shareholders starting in the third quarter.

Citing strong first half performance, the company increased the midpoint of upstream production guidance to 797,500 boe/d and the midpoint of downstream throughput guidance to 655,000 b/d.

Total upstream production is now expected at 785,000 boe/d to 810,000 boe/d. Total downstream throughput is projected to be 640,000 b/d to 670,000 b/d.

In addition, chief commercial officer Drew Zieglgansberger announced his retirement effective Aug. 31. The duties of the chief commercial officer will be reassigned to other members of the senior leadership team.

Cenovus' shares were last seen down $1.46 to $26.36 on the Toronto Stock Exchange.

Price: 26.34, Change: -1.48, Percent Change: -5.32