Suncor Makes $1.5 Billion Profit on Soaring Oil Prices

CALGARY – Suncor Energy Inc. says it earned $1.53 billion in the fourth quarter and hit record adjusted operating funds amid soaring oil prices.

The Calgary-based oil producer and refiner announced after markets closed Wednesday that it earned $1.07 per common share for the period ended Dec. 31, compared with a net loss of $168 million or 11 cents per common stock for the same period of 2020.

Revenue jumped 68% to $11.1 billion from $6.6 billion in the fourth quarter of 2020.

Analysts had expected Suncor to earn $1.35 billion in the quarter, or 94 cents per common share on $10.8 billion in revenue, according to financial database firm Refinitiv.

Suncor says the increases were primarily related to higher sales of crude oil and refined products reflecting the improving business environment. The fourth quarter of 2020 was negatively impacted by the significant drop in demand for transportation fuel related to the COVID-19 pandemic.

Suncor says it generated a record $3.1 billion, or $2.17 per common share, in adjusted operating funds during the fourth quarter.

Suncor’s total upstream production was 743,300 barrels of oil equivalent per day (boe/d) in the fourth quarter, compared to 769,200 boe/d in the prior year quarter.

It says the decline is partly due to the lack of production from the Golden Eagle area development, which was sold in the fourth quarter of 2021.

Source link

Felix J. Dixon