- Suncor Energy (SU) has reported a significant decline in third-quarter financial performance as production levels continue to flounder
- The company posted a net loss of C$12 million for the three months ending September 30, 2020, compared to net earning of more than $1 billion in the same period last year
- Total upstream production fell from 762,300 barrels of oil equivalent per day in the third quarter of last year to just 616,200 barrels this year
- In light of the decline in productivity, the company said it is focusing on improving reliability, increasing margins and reducing operating costs
- Suncor Energy (SU) is currently down 1.6 per cent to $14.76 per share
Suncor Energy (SU) has reported a significant decline in third-quarter financial performance as production levels continue to flounder.
The Calgary-based energy giant posted a net loss of C$12 million for the three months ending September 30, 2020, compared to net earnings of more than $1 billion in the same period last year.
Funds from operations also fell from $2.67 billion last year to just over $1.16 billion this year, but increased substantially in comparison to Suncor’s total of $488 million seen in the second quarter of 2020.
Operationally, total upstream production came to 616,200 barrels of oil equivalent per day, representing a significant drop compared to last year’s levels of 762,300 barrels per day.
The decline was partly due to a fire that occurred at Suncor’s Oil Sands Base Plant on August 14. Production remains below capacity and is expected to ramp-up to full rates by early November.
Refinery crude throughput also fell compared to the prior year as a result of planned maintenance activities and lower demand for transportation fuels.
Mark Little, President and CEO of Suncor Energy, said he is disappointed with the company’s recent operational performance.
“We remain focused on operational excellence and on continuing to make the right long-term decisions to advance our asset sustainment and strategic initiatives aimed at improving reliability, increasing margins and reducing operating costs across our assets,” he added.
Suncor now has just under $1.5 billion in available cash and cash equivalents, representing a decrease from almost $1.85 billion the quarter before. This comes as capital and exploration expenditures, dividend payments and the repayment of short-term debt more than offset cash flow provided by operating activities.
Suncor Energy (SU) is currently down 1.6 per cent to $14.76 per share at 11:15am EDT.
