Suncor Energy's strong production and refining margins helped it beat its quarterly profit goal

Suncor Energy, a Canadian integrated oil and natural gas company, beat its third-quarter profit expectations on Tuesday. Higher production and high refining margins offset lower prices.

Refiners' demand and margins are improving after last year's slump. Profits were down from the highs of post-pandemic levels and there was disruption in supply due to Russia's invasion.

The refining segment of the company reported adjusted operating earnings of C$894 ($637.48) million, up approximately 85% over a year ago.

The refinery was used at 106% of its capacity, up from 105% last year.

The company also enjoyed higher upstream production. It was 870,000 bpd during the quarter, an increase of 5% compared to a year ago.

The expanded Trans Mountain Pipeline will allow Canadian oil producers to access global markets, and reduce their dependency on U.S. pipelines.

After OPEC+ accelerated production increases and raised concerns over oversupply, the lower oil price of $69.10 per barrel fell by about 14%.

At the midpoint, the company increased its forecast for current-year production by approximately 3%, refinery throughput and refined product sales by approximately 8%.

According to data compiled and analyzed by LSEG, the company reported an adjusted loss of C$1.48 for the quarter ending September 30 compared to the analysts' average expectation of C$1.08. ($1 = 1.4024 Canadian dollars) (Reporting by Tanay Dhumal in Bengaluru; Editing by Alan Barona)

(source: Reuters)