Suncor releases first-quarter results for 2024
Suncor Energy Inc. reported that it earned $1.61 billion in the first three months of 2024, down from $2.05 billion a year earlier.
The Calgary-based energy giant added its first-quarter earnings amount to $1.25 per common share, compared with $1.54 in the first quarter of 2023. On an adjusted basis, the company reports its operating earnings of $1.82 billion in the first quarter of 2024 were comparable to $1.81 billion in the prior year's quarter.
Rich Kruger, president and chief executive officer remarked during the analysts call after the release of its results that the company’s first quarter results were stronger that what it posted in the final quarter of 2023.
“I recognize I'm going to start sounding like a broken record here, but by focusing on the fundamentals: safety, reliability, profitability, coupled with a determination to deliver on commitments, we have made some notable achievements,” he added. “Starting with the fundamentals, we had no life-altering or life-threatening injuries. Lost time incidents were down 50% year on year and recordable incidents were down 20% year on year. Process safety event were down greater than 50% year on year. This is really a tribute to our people, our processes, our priorities, and site leadership.”
Kruger added that refining throughput was at 455,000 barrels a day, up 88,000 barrels a day from a year ago, or 24% higher. Suncor reported record upstream production of 835,000 barrels per day during the quarter, including all-time high oilsands production of 785,000 barrels per day.
Kris Smith, chief financial officer with Suncor said the company also had downstream refining utilization of 98% in the first quarter, which was 19% higher than Q1 in 2023. “We saw high availability across all the refineries and this supported record refined product sales of 581,000 barrels a day with downstream margin capture this quarter at 94%. We essentially held our costs flat year over year while substantially increasing production and our cost and capital discipline focus continues.”
READ: Suncor Energy reports strong fourth quarter 2023 results
“Bottom line, 2024 has gotten off to a strong start, with good momentum and we intend to keep it going,” Kruger continued. “You may have seen and may be aware that on May 21st we're going to provide an update via webcast on our overall story and our near-term outlook. Specifically, our management team will outline the next two to three years expectations, financial and operating, our outlook on volumes, CapEx, our $5 a barrel reduction in breakeven, etc. We're also going to detail expected shareholder returns and capital allocation at various prices later in the year. We'll see you at this point, but we anticipate a more comprehensive investor day with a longer-term outlook. So stay tuned.”
Suncor also reported that it is leasing and operating a number of Aframax oil tanker ships to carry crude from the recently completed Trans Mountain pipeline expansion to Pacific markets. The company says leasing and operating the tankers itself means Suncor saves on shipping costs, and that oil taken onto tanker ship at the Westridge Marine Terminal in Burnaby, B.C., will be delivered primarily into California as well as Asian markets.
With files from The Canadian Press.
