Suncor to keep Petro-Canada retail business

Suncor Energy Inc. has decided to keep its Petro-Canada retail business, the company announced Tuesday, after a comprehensive review that included what it would mean to sell the operations.

The company said instead it will look to improve its retail operations including expanding strategic partnerships in non-fuel related businesses such as quick service restaurants, convenience stores, loyalty partnerships and energy transition offerings.

Suncor undertook a review of Petro-Canada after reaching a deal earlier this year with activist investor Elliott Investment Management LP, which had expressed frustration with the company's performance.

Suncor chair Mike Wilson says the company's board concluded that keeping and optimizing the retail business will generate the highest long-term value for shareholders.

"Petro-Canada is a unique, differentiated, and strategic asset due to its strong national network and best in market consumer brand and loyalty program,'' Wilson said in a statement.

The review included an analysis of the business, including an assessment of the value of Suncor's integrated model, studies of the future of retail in Canada and Petro-Canada's growth plans.

Suncor said the board also reviewed preliminary indications of interest in the retail business.

The decision to keep the retail business came as Suncor announced its production outlook and capital program for 2023.

Capital expenditures in 2023 are forecast to be between $5.4 billion and $5.8 billion.

The company says it expects total production next year is expected to be between 740,000 to 770,000 barrels of oil equivalent per day.

Refinery throughput for 2023 is expected to be 430,000 to 445,000 barrels per day with refinery utilization between 92 and 96%.

Refined product sales are expected to be between 550,000 and 580,000 barrels per day.