Suncor Energy Centre
Suncor Energy reports strong Q2 volumes, trims capital guidance amid lower earnings
CALGARY — Suncor Energy Inc. is reporting lower second-quarter earnings year-over-year, despite hitting record highs for production and refinery throughput.
The Calgary-based company posted net earnings of $1.13 billion, or 93 cents per share, down from $1.57 billion, or $1.22 per share, during the same period last year. Adjusted operating earnings, which exclude certain one-time items, dropped to $873 million from $1.63 billion a year earlier.
Suncor attributed the decline to lower benchmark crude prices, which impacted upstream realizations, though it says the effect was partially offset by higher sales volumes and lower royalties.
Despite the earnings dip, the company delivered record second-quarter upstream production of 808,000 barrels per day and record downstream refinery throughput of 442,000 barrels per day. CEO Rich Kruger credited “outstanding execution” of major turnaround activities for the strong operational results.
Suncor returned $1.45 billion to shareholders during the quarter through $750 million in share buybacks and $700 million in dividends. It also reduced its full-year capital spending guidance by $400 million, citing capital discipline and strong execution.
With Alberta’s new election law requiring hand-counted ballots this fall, Suncor says its workforce is also expanding to support increased maintenance and turnaround activity. The company’s free funds flow totaled $981 million for the quarter, while net debt stood at $7.67 billion as of June 30
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