Cenovus Energy is reporting a first-quarter loss of $118 million.
However, that compares with a $668 million loss a year ago, and the company says it shows its cost-cutting plan is on track.
The improvement is due largely to unrealized foreign-exchange gains.
Revenue totalled nearly $2.25 billion after royalties, down from $3.14 billion in the same quarter last year.
During the first three months of the year, the company produced an average of over 197,000 barrels of oil per day, down from over 218,000 a year ago.
Cenovus has been slashing costs and jobs to deal with the drop in oil prices last year and officials say the company has, for the most part, completed job cuts announced last year.
Staff is down 31 per cent compared with the end of 2014.