Cenovus Energy provides corporate update - Seite 3

Teams from across the company have identified cost-saving measures, resulting in a reduction to G&A expenses of $50 million, or 17%, compared with the December budget, as well as additional operating efficiencies of $100 million across Cenovus’s operations. Although production volumes will be lower than initially anticipated, Cenovus is maintaining its forecast per-barrel oil sands operating costs within the guidance range provided in December due to additional oil sands operating cost efficiencies. As a result of the measures it is currently taking and the quality of its assets, sustaining costs at its oil sands operations have dropped to about $2.60/bbl for the year. The company anticipates per-barrel sustaining costs will return to more normal levels over the longer term.

A decision has been made to roll back salaries across the company, with an emphasis on Board, executive and senior leader compensation. Effective May 1, 2020, Board members will receive a 25% compensation reduction. The President & CEO will have his annual base salary reduced by 25%, other executive team members will take a 15% annual base salary reduction, Vice-Presidents and their equivalents in technical positions will receive a 12% annual base salary rollback and employees at other levels will experience a graduated smaller salary impact.

“Our compensation philosophy is focused on alignment with shareholders, which is why we have a mandatory share ownership policy for senior leaders and an annual incentive program based on the company achieving its goals,” said Pourbaix. “The salary rollback, which will have the greatest impact on senior leaders, is a way to demonstrate the entire company is committed to addressing the challenges we face.”

Guidance update
Cenovus has updated its corporate guidance to reflect the revisions from today and March 9 to production volumes and capital and G&A expenditures. The new guidance can be found on cenovus.com in the Investors section.

COVID-19 response
In addition to these decisive measures Cenovus is taking to maintain its financial resilience in the current challenging commodity price environment, the company has also been taking proactive steps to protect the health and safety of its staff and the continuity of its business in response to the COVID-19 pandemic. To deter COVID-19 from spreading in any of its workplaces, Cenovus has implemented social distancing measures, including directing the vast majority of its office staff and certain non-essential field staff to work from home. Following the guidance of health officials, mandatory self-quarantine policies, travel restrictions, screening and enhanced cleaning and sanitation measures have been put in place. Cenovus staff have been committed to adhering to the new procedures and there have been no positive tests of COVID-19 with any of its workforce. Cenovus also has a comprehensive Business Continuity Plan to ensure continued safe and reliable operations in the event of a COVID-19 outbreak at any of its workplaces.