Suncor Energy Centre
CALGARY — Suncor Energy reported stronger first-quarter profits and record operating performance Tuesday, driven by higher oil production, stronger refining results and increased fuel sales as the company continued ramping up shareholder returns.
The Calgary-based oilsands producer posted net earnings of $2.1 billion in the first quarter of 2026, up from $1.69 billion during the same period a year earlier. Adjusted operating earnings climbed to $2.3 billion, while adjusted funds from operations rose to just over $4 billion.
Free funds flow reached $2.9 billion, compared with $1.9 billion a year earlier, allowing the company to return more than $1.5 billion to shareholders through dividends and share buybacks.
Suncor paid more than $700 million in dividends during the quarter while repurchasing $825 million worth of shares. The quarterly dividend held at 60 cents per share, up from 57 cents a year ago.
The company also announced plans to increase share repurchases by more than 30 per cent this year, boosting monthly buybacks from $275 million to $350 million and targeting nearly $4 billion in total repurchases for 2026.
Chief executive Rich Kruger said the company’s recent performance reflects what he described as a “results-oriented, high-performance organization” focused on operational execution and shareholder returns.
Suncor reported record first-quarter upstream production of 875,200 barrels per day, up from 853,200 barrels per day a year earlier. Refining throughput also hit a first-quarter record at nearly 498,000 barrels per day, while refined product sales reached an all-time quarterly high of 680,900 barrels per day.
The downstream business emerged as one of the strongest performers in the quarter, benefiting from improved refining margins, expanded refinery capacity and strong export demand. Refined product sales jumped roughly 76,000 barrels per day from the previous year as the company increased exports while continuing domestic retail growth through Petro-Canada and strategic partnerships.
Exploration and production volumes also outperformed year-over-year, rising to 76,400 barrels per day from 62,300 barrels per day.
Some areas of the business faced pressure despite the overall strong quarter.
Synthetic crude oil production fell to 519,300 barrels per day from 536,600 a year earlier as increased maintenance work at Syncrude weighed on output. Total oilsands bitumen production was also largely flat year-over-year and affected by both Syncrude maintenance and a third-party natural gas pipeline curtailment in northern Alberta.
Operating, selling and general expenses rose to $3.78 billion from $3.3 billion a year earlier due to higher maintenance activity, increased sales volumes, rising commodity input costs and higher share-based compensation expenses.
Net debt also edged higher to $6.84 billion from $6.34 billion at the end of 2025, though the company said its balance sheet remains strong, with debt ratios largely unchanged.
The company used its March investor day to outline an ambitious three-year growth strategy extending through 2028.
Targets include adding 100,000 barrels per day of upstream production, reducing corporate breakeven costs by US$5 per barrel to US$38 WTI and increasing free funds flow by $2 billion at a US$65 oil price environment.
Suncor also confirmed a 10 per cent increase in refining network nameplate capacity to 511,000 barrels per day, though updated guidance lowered expected refinery utilization rates to between 90 and 93 per cent because of the larger capacity base. Actual throughput guidance for 2026 remains unchanged at between 460,000 and 475,000 barrels per day.
The results come as Canadian energy producers continue benefiting from strong global demand and elevated oil prices linked to geopolitical tensions and export market uncertainty.
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