benkrut / Depositphotos.com
Suncor posts strong first-quarter earnings and record production results
CALGARY — Suncor Energy Inc. is reporting strong financial and operational performance in the first quarter of 2025, highlighted by record upstream production and refining throughput.
The Calgary-based energy company generated more than $3 billion in adjusted funds from operations and $1.9 billion in free funds flow during the quarter. Shareholder returns totalled $1.5 billion, including $750 million in share repurchases and $705 million in dividends.
Suncor says upstream production averaged 853,000 barrels per day, the highest first-quarter output in its history. Refinery throughput also reached a first-quarter record of 483,000 barrels per day, while refined product sales hit 605,000 barrels per day.
“We remain focused on safe, reliable and cost-effective operations, and these results reflect that,” said Rich Kruger, Suncor’s president and chief executive officer. “Strong asset utilization and continued cost discipline supported record performance across both upstream and downstream businesses.”
The company reported net earnings of $1.689 billion, or $1.36 per common share, up slightly from $1.610 billion, or $1.25 per share, in the same quarter last year. Adjusted operating earnings were $1.629 billion, or $1.31 per share, compared to $1.817 billion, or $1.41 per share, in the first quarter of 2024. The decline was mainly due to lower upstream sales volumes as inventories rose, though higher refined product sales partially offset the impact.
Suncor says improved Oil Sands price realizations helped lift results, benefiting from narrower price differentials. However, those gains were mostly offset by weaker downstream crack spreads.
Adjusted funds from operations were $3.045 billion, or $2.46 per share, slightly down from $3.169 billion a year earlier. Cash flow from operating activities fell to $2.156 billion from $2.787 billion in the prior year, mainly due to working capital changes and lower benchmark refining margins.
Oil Sands operations saw a $367 million year-over-year increase in adjusted funds from operations due to stronger production and improved pricing. The exploration and production segment saw a $137 million decline due to inventory builds, while refining and marketing fell by $404 million due to weaker crack spreads.
Operating, selling and general expenses declined to $3.297 billion from $3.440 billion last year, with lower upstream sales contributing to the drop.
Refinery utilization hit 104 percent in the quarter. Net debt stood at $7.56 billion, down from $9.55 billion in the first quarter of 2024.
The company says it remains committed to its integrated strategy, capital discipline and shareholder returns amid ongoing volatility in global energy markets.
Comments