Tuesday, October 6th6.3°C

Oilsands giant Suncor sees profits soar on improved market access for crude

CALGARY - Oilsands giant Suncor Energy Inc. (TSX:SU) has posted record operating earnings as it was able to get more of its crude to market by pipeline and rail.

The Calgary-based company says operating earnings were more than $1.79 billion, or $1.22 per share — widely beating the average analyst expectation of 93 cents, according to estimates compiled by Thomson Reuters

A year earlier, Suncor had operating earnings of $1.37 billion, or 90 cents per share.

Operating revenues, net of royalties, were $10.3 billion, up from $9.8 billion a year earlier.

Net earnings, which account for one-time items, were nearly $1.49 billion, or $1.01 per share, up from $1.09 billion, or 72 cents per share.

Suncor says it was able to capture world pricing on 96 per cent of its oil and gas production during the quarter.

Oil shipments have been arriving at its Montreal refinery by rail, with the expectation of ramping up to 35,000 barrels per day during the second quarter of 2014.

That situation is expected to further improve once Enbridge Inc.'s (TSX:ENB) reversed Line 9 pipeline, which received regulatory approval in March, starts up. Between pipe and rail options, the Montreal refinery should be able to run 100 per cent lower-priced inland crude, rather than having to import it from abroad.

Meanwhile, 70,000 barrels per day have been able to make their way to the lucrative U.S. Gulf Coast market on a recently-opened TransCanada Corp. (TSX:TRP) pipeline starting in Cushing, Okla.

The Gulf Coast pipeline, which started up in January, was originally meant to be part of TransCanada's contentious Keystone XL proposal. But TransCanada opted to go ahead with the southern portion first while the larger and more contentious cross-border segment remained in limbo.

Company-wide production for the quarter was 545,300 barrels of oil equivalent per day in the quarter, down from 596,100 a year earlier, due to the sale of its conventional natural gas business and the shutting in of production in Libya.

However, output in the oilsands was 389,300 barrels per day, up from 357,800 during the corresponding 2013 quarter.

Suncor has raised its expectations for Alberta natural gas prices to $4.50 per gigajoule from $3.86 per gigajoule. Natural gas is a major cost component for oilsands producers like Suncor.

_ Follow @LaurenKrugel on Twitter

The Canadian Press

Read more Business News


Recent Trending

Today's Market
S&P TSX13552.20+212.46
S&P CDNX529.91+4.35
S&P 5001987.05+35.69
CDN Dollar0.7639-0.0006
Natural Gas2.467+0.017

Okanagan Companies
Pacific Safety0.215+0.000
QHR Technologies Inc1.22+0.03
Metalex Ventures0.06+0.00
Russel Metals22.51+1.03
Copper Mountain Mining0.50+0.08
Colorado Resources0.07-0.01
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.095+0.005
Decisive Dividend Corp3.49+0.00
Diamcor Mining0.90+0.02


2444779#13-2065 Boucherie Road
2 bedrooms 2 baths
more details
Click here to feature your property
Please wait... loading

Perfect (reno'd) home

Photo: Thinkstock.comHow many times have you found a home in the perfect location, but it needs too much work as per the home inspection? There is a great program available through most lenders that w...

Living beyond 100

Photo: ContributedThere was a time most careers involved an apprenticeship of one sort another. Some official, others involving years of servitude, and others time simply spent watching and emulating ...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...




Member of BC Press Council