Suncor Canada beats its quarterly profit expectations on the back of higher prices and improved margins
Suncor Energy beat Tuesday's adjusted profit forecasts as higher crude price realizations, and improved refining margins, offset lower upstream production.
As the Middle East conflict supported crude markets, higher oil prices and fuel profits lifted earnings in Canada's oil patch.
Suncor, based in Calgary, Alberta, said that oil sands operating earnings adjusted to C$2.592?billion, up from C$926?million a year earlier, while refining & marketing operating earnings adjusted to C$2.068 billion, up from C$404?million.
Years of investment has helped Canadian oil and gas producers to increase production while keeping costs in check.
Peer Imperial Oil's second-quarter profits more than doubled and it beat analysts' estimates, benefiting also from higher crude oil prices.
The strength of the downstream helped to offset a weaker overall production.
Suncor's refinery crude?throughput increased to a record of 470.600 barrels per a day from 442.300 barrels - and its refinery usage rose from 87% to 92%.
The sales of refined products also reached a record quarterly volume of 654,800 barrels a day (bpd). Total upstream production dropped to 760.900 bpd. This was partly due to a planned turnaround.
Suncor has reaffirmed their 2026 forecast for upstream production, refinery throughput and capital expenditures. The company's forecast is C$5.6 to C$5.8 Billion.
The company plans to increase its monthly share repurchases from C$350 to C$500 starting in August. This will result in a total buyback of C$4.7billion by 2026.
Suncor said in March that by 2040 about 60% of the oil sands it produces will be extracted in situ (or with steam assistance), up from 30% at present, as the company shifts away from more expensive mining.
According to LSEG, the?company reported adjusted operating earnings of C$3.23 for the quarter ending June 30. This was above analysts' estimates of C$3.07 per share.
(source: Reuters)
