Suncor Exceeds Q3 Expectations with Strong Production and Shareholder Returns
Suncor Energy reported strong third-quarter financial results, surpassing analyts’s profit estimates and achieving high production levels across its operations. The Calgary-based oil giant generated $3.8 billion in adjusted funds from operations, while its adjusted profit of $1.48 per share beat expectations by 37%. Free funds flow totaled $2.2 billion.
Suncor’s upstream production rose nearly 20 per cent from the previous year, reaching 829,000 barrels per day (bbls/d), with a company record of 99 per cent utilization at Suncor’s upgrading facilities. Oil sands production also saw an increase. The quarterly output of bitumen came in at 909,600 bbls/d, and refined product sales hit a third consecutive quarterly high of 612,000 bbls/d.
With these operational gains, Suncor met its $8 billion net debt target, enabling a commitment to return 100% of excess funds to shareholders. The company distributed $1.5 billion in shareholder returns with $800 million in share repurchases and $700 million in dividends.
In a statement, Rich Kruger, Suncor’s President and CEO, highlighted the company’s “exceptional asset reliability and cost management,” attributing its continued performance to the expertise and dedication of Suncor’s workforce. Suncor’s stock closed at $53.16 (TMX: SU) on Tuesday, as West Texas Intermediate (WTI) crude settled at $68.24 per barrel.