Cenovus Energy Inc. swung to a strong fourth-quarter profit of $934 million, more than quadrupling the $146 million recorded in the same period of 2024. That figure translated to 50 cents per diluted share, up from seven cents a year ago, the company said Wednesday.

Revenue dipped to $10.9 billion from $12.8 billion in the prior year’s fourth quarter. Still, upstream operations delivered a standout performance. Production reached 917,900 barrels of oil equivalent per day, surpassing the previous record of 816,000 barrels.

Cenovus credited much of the gain to its $6.6 billion acquisition of MEG Energy Corp. Excluding that deal, output still climbed five percent year over year. The boost came amid steady demand for Canadian heavy oil, even as global prices fluctuated.

Downstream refining took a hit, with throughput falling to 465,500 barrels per day from 666,700 barrels in the 2024 fourth quarter. Facilities ran at 98 percent utilization, officials noted, reflecting tight operations despite lower volumes.

CEO Jon McKenzie highlighted the results in a statement. “Our teams delivered record production while advancing key projects across our portfolio,” he said. The company pointed to strong cash flow from its oil sands assets in northern Alberta as a key driver.

For the full year, Cenovus produced 850,000 barrels of oil equivalent per day, up from 785,000 in 2024. Capital spending held steady at around $4.9 billion, focused on long-life assets like Support Creek and Christina Lake.

Shares of Cenovus rose 2.4 percent in Toronto trading following the earnings release, closing at C$25.18. Analysts watched closely for updates on the company’s shareholder returns program, which includes dividends and share buybacks.

The energy producer operates primarily in Western Canada, with refining assets in the U.S. Midwest and Gulf Coast. It has pushed to improve its integrated model, blending upstream extraction with downstream processing to capture wider margins.

Market conditions played a mixed role. West Texas Intermediate crude averaged $71 per barrel in the quarter, down slightly from $75 a year earlier. Canadian heavy oil differentials narrowed, aiding profitability.

Cenovus maintained its quarterly dividend at 19 cents per share. Executives forecast 2026 production between 805,000 and 845,000 barrels per day, assuming no major disruptions.

The report highlights resilience in Canada’s oil sands sector. Despite revenue pressure from lower refining throughput, Cenovus used higher volumes and cost controls to drive earnings growth.