Suncor Energy reported net earnings of $1.4 billion (C$1.879 billion) in the second quarter, compared with $2.97 billion (C$3.996 billion) in the year-ago quarter.
Suncor’s adjusted operating earnings were $0.93 billion (C$1.253 billion) in the second quarter, compared with $2.83 billion (C$3.814 billion) in the prior-year quarter, according to an earnings release Monday. previous year, mainly due to “decline in crude oil and refined products”. realizations reflecting a weaker business environment in the current quarter, and a first-in, first-out inventory valuation loss in the current quarter compared to a gain in the prior year quarter, partially offset by reduction of royalties and income taxes”.
The Calgary-based company said it delivered total production of 741,900 barrels of oil equivalent per day (boepd), with strong utilization of upgrades outside of planned maintenance activities and continued strong performance from assets in location Suncor also completed all major planned annual maintenance at all refineries, resulting in a refinery crude throughput of 394,400 barrels per day (bpd).
“Our assets and on-site upgrades once again delivered strong performance and helped reduce the impacts of planned maintenance on our integrated operations in the Fort McMurray region,” said Suncor President and CEO Rich Kruger. “During the second quarter we generated [CAD] 2.7 billion adjusted funds from operations and delivered [CAD] 1.4 billion to shareholders, and we are making progress in our goal to clarify, simplify and focus the organization to drive improved performance and maximize value for our shareholders”.
The company’s total oil sands bitumen production rose to 814,300 bpd in the second quarter compared to 811,300 bpd in the year-ago quarter, due to lower maintenance activities in the current period, excluding Syncrude , which was impacted by planned transformation activities, and increased job interest in Fort Hills, according to the release.
Suncor’s net synthetic crude production rose to 505,000 bpd in the second quarter of 2023, representing a combined upgrader utilization of 94 percent, compared with 483,000 bpd and 89 percent in the prior quarter previous year, reflecting lower planned maintenance activities in the current period and strong. use of the updater outside of planned maintenance activities, the company said.
Operating and production output in the second quarter decreased to 62,800 bpd compared to 67,000 bpd in the year-ago quarter, primarily due to natural declines and the divestment of the company’s Norway assets in third quarter of 2022, Suncor said.
The company’s refinery crude throughput was 394,400 bpd and refinery utilization was 85 percent in the second quarter of 2023, compared to 389,300 bpd and 84 percent in the year-ago quarter above, reflecting the change activities planned in both periods, according to the release.
Suncor said it continued to optimize its portfolio with the completion of the sale of its UK exploration and production assets for gross proceeds of $0.82 billion (CAD 1.1 billion), resulting in a gain of sales of $450.75 million (CAD 607 million).
Suncor’s board of directors approved a quarterly dividend of $0.39 (CAD 0.52) per share on its common stock, payable on September 25 to shareholders of record at the close of business on September 1, according to a separate press release.
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