- Integrated energy company, Suncor (SU) has seen its second quarter results heavily marred by a disastrous few months for the global oil and gas industry
- The company has reported a net loss of C$614 million compared to a net profit of around $2.7 billion in 2019’s same quarter
- The company attributed the losses to the impact of COVID-19 on oil demand, as well as the oil price trade war between OPEC+ nations and Russia, earlier this year
- To weather the industry downturn, Suncor is aiming to reduce its operating costs and capital costs by $1 billion and $1.9 billion, respectively, by the end of 2020
- Suncor Energy (SU) is down 3.65 per cent and is trading at $23.10 per share
Suncor (SU) has seen its second quarter results heavily marred by a disastrous few months for the global oil and gas industry.
Following the onset of the COVID-19 pandemic, the company has reported a net loss of $614 million compared to a net profit of around $2.7 billion in 2019’s same quarter.
The impact of COVID-19 on global oil and gas demand was further compounded by the oil price trade war between OPEC+ nations and Russia, earlier this year, which drove oil prices to historic lows.
As a result, Suncor cut its daily production by more than 150,000 barrels of oil equivalent during the quarter.
To help adjust its operations during the industry downturn, the company has cut costs significantly across its operations.
Toward this end, Suncor is aiming to reduce its operating costs and capital costs by $1 billion and $1.9 billion, respectively, by the end of 2020.
Mark Little, CEO and President of Suncor said the company experienced unprecedented volatility this quarter in all facets of its business. He went on to comment on the company’s outlook.
“As we move forward, we will remain agile in the execution of our strategy as we continue to focus on the long-term financial health of the company and our plans to generate increasing shareholder returns.
“We continue to focus on maximizing the value from our assets, leveraging our midstream expertise and logistics network and flexing our upstream and downstream assets to manage our operations and optimize our product mix in response to shifting demand,” he said.
Suncor (SU) is down 3.65 per cent and is trading at $23.10 per share at 11:57pm EDT.