Cenovus Energy looking to cut jobs, slashing dividend by 40 per cent

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.