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Trends in Net Income, Cfo, Capex, Dividends, and Net Borrowings

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Trends in Net Income, Cfo, Capex, Dividends, and Net Borrowings

Cenovus

2011

2012

2013

Net income

1,478

995

662

Cash flow from operations(CFO)

3,273

3,420

3,539

Capital expenditures

2,792

3,449

3,269

Exploration&Valuation Assets

527

654

331

Property&Plant&Equipment

2,265

2,795

2,938

Dividends

603

665

732

Net borrowings

(9)

1,222

(19)

Net issuance(repayment) of short term borrowing

(9)

3

(8)

Issuance of US unsecured notes

0

1,219

814

Repayment of US unsecured notes

0

0

(825)

CFO-NI

1,795

2,425

2,877

CFO-CapEx

481

-29

270

CFO-CapEx+Dividends

-122

-694

-462

Crescent

2011

2012

2013

Net income

201

191

145

Cash flow from operations(CFO)

1,323

1,544

1,973

Capital expenditures

1,458

3,365

1,874

Development capital and other expenditures

1,252

1,509

1,747

Capital acuisitions

206

1,856

127

Cash Dividends

314

367

422

Net borrowings

78

149

199

CFO-NI

1,122

1,353

1,828

CFO-CapEx

-135

-1,821

99

CFO-CapEx+Dividends

-450

-2,188

-323

Trends in Net income, CFO, CapEx, Dividends, and Net borrowings

We can see from figure 1 and figure 2 that both Cenovus and Crescent point experienced a decrease in net income (NI) and an increase in operating cash flow (CFO) for the past three years. The annual decreasing rates of NI for Cenovus and Crescent point are 33% and 15% respectively while the annual growth rates of CFO for Cenovus and Crescent point are 4% and 22% respectively. As we know, net income is used to measure a company’s operating performance and profitability on an accrual basis while operating cash flow measures the actual money that flows in and out of the firm. Such trends of the two companies’ NI and CFO demonstrate that though the operating performances of the two companies were not satisfying, they both enhance the quality of the income and improve the financial liquidity and flexibility and Crescent point did better in improving.

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