Thursday, March 5th3.7°C
25326
24506

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 from 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

24696


Recent Trending




Today's Market
S&P TSX15144.15+61.311
S&P CDNX697.35-0.74
DJIA18122.14+25.24
Nasdaq4980.638+13.497
S&P 5002100.20+1.67
CDN Dollar0.7993-0.0055
Gold1196.30-4.2999
Oil52.66-0.57
Lumber287.90-2.80
Natural Gas2.833+0.064

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.010.00
QHR Technologies Inc1.58+0.03
Cantex0.035-0.005
Anavex Life Sciences0.180.00
Metalex Ventures0.045+0.005
Russel Metals24.50-0.45
Copper Mountain Mining1.25+0.01
Colorado Resources0.130.00
ReliaBrand Inc0.0065-0.0015
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.22-0.005

 





FEATURED Property
2188420#99 4075 McClain Road
3 bedrooms 2 baths
$179,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Refinance your mortgage?

Canadian Mortgage rates are low and could be dropping down in time for the spring market following a drop in the Bank of Canada Rate on January 21 by 1/4% which will save new buyers and those with mo...


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...


It's OK to say 'I'm sorry'

Photo: ContributedStand-up comedians and sitcoms have been making fun of Canadians for being polite as long as I can remember. Being known for our niceness is certainly not a bad thing and I wish more...

_








Member of BC Press Council


25107