Tuesday, September 30th13.2°C
22738
22934

Suncor net income falls, takes charge on cancelled oilsands project

CALGARY - Suncor Energy Inc. (TSX:SU) said Wednesday its net income during the second quarter dropped by more than two thirds as it took some $1.2 billion in charges related to its holdings in the oilsands and in Libya.

The Calgary-based energy giant also hiked its quarterly dividend by 22 per cent to 28 cents per share.

"We continue to focus squarely on profitable growth. This means we're disciplined with our capital and invest wisely in high-return projects," said CEO Steve Williams.

"This prudent approach and our cash generating ability have enabled us to increase our quarterly dividend to shareholders."

Net income was $211 million, or 14 cents per share, compared to $680 million, or 45 cents per share, a year earlier.

But operating earnings, which strip out the effects of unusual items, were stronger at $1.14 billion, compared to $934 million during the second quarter of 2013.

On a per-share basis, operating earnings were 77 cents per share, missing the average analyst estimate of 97 cents per share, according to Thomson Reuters.

Cash flow from operations was $2.4 billion, or $1.64 per share, compared to $2.25 billion, or $1.49 per share.

The company took a $718-million charge related to a decision to shelve the Joslyn oilsands mine, which would have been operated by the Canadian unit of France's Total SA. The partners decided the project would not be economically feasible in today's environment.

Suncor also took a $297-million charge in Libya, which has been rocked by political unrest, and a $223-million charge on oilsands assets that no longer fit with Suncor's strategy.

Production in the oilsands averaged 378,000 barrels per day during the quarter, up form 276,000 barrels a year earlier.

Company-wide output averaged 518,400 barrels per day, compared to 500,100 during the same 2013 quarter.

Cash operating costs in the oilsands were down about 27 per cent.

And the firm has also lowered its capital spending target for this year to $6.8 billion from $7.8 billion.

_ Follow @LaurenKrugel on Twitter

The Canadian Press


Read more Business News

23423


Recent Trending




Today's Market
S&P TSX14989.72+12.80
S&P CDNX906.80-5.96
DJIA17078.797.57
Nasdaq4500.311-5.542
S&P 5001975.98-1.82
CDN Dollar0.8929-0.0029
Gold1208.90-9.90
Oil89.81-2.97
Lumber333.70+4.80
Natural Gas4.126-0.028

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.25+0.02
Cantex0.07-0.02
Anavex Life Sciences0.1825-0.0025
Metalex Ventures0.0550.00
Russel Metals34.68+0.19
Copper Mountain Mining2.43-0.09
Colorado Resources0.165+0.015
ReliaBrand Inc0.0157-0.0043
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.32-0.02

 



23359

FEATURED Property
2006326407 - 2388 Baron Rd.
1 bedrooms 1 baths
$199,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...


A wildly successful manufacturer

Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...


Finding the smart money

Recently I had the privilege of working alongside André Voskuil, a local guru in the world of Alternative Financing. André has quite the reputation in the world of direct investments as ...

_








Member of BC Press Council


22632