Canada’s Suncor Energy beat analysts’ estimates for second-quarter profit on Tuesday, helped by higher oil prices and a rise in oil sands production.
Average U.S. crude oil prices rose about 10% during the second quarter, aided by OPEC+ production cuts and potential supply disruptions due to the conflict in the Middle East.
Canada’s second-biggest oil producer said total upstream production was up at 770,600 barrels per day (bpd) in the quarter, compared with 741,900 bpd a year earlier, helped by record quarterly production at its Firebag asset, which was later shut in July due to wildfire threats.
Organizations
Suncor also benefited from the acquisition of additional interests in the Fort Hills project from French energy firm TotalEnergies last year.
Demand for Canadian crude picked up in the quarter following the start of the long-delayed Trans Mountain pipeline expansion project, which nearly tripled the shipping capacity at Canada’s Pacific coast.
Suncor’s refinery crude throughput increased 9.2% to 430,500 bpd, with utilization rising to 92% despite turnaround at several of its refineries.
U.S.-listed shares of the company rose 2.7% after the bell.
Rivals Imperial Oil, Cenovus Energy and Canadian Natural Resources have also posted higher profit in the latest quarter, backed by higher production and crude prices.
“With the majority of 2024’s planned maintenance complete, the company is very well positioned for a strong second half of the year,” Suncor CEO Rich Kruger said.
Its adjusted profit was at C$1.27 per share for the quarter ended June 30, compared with analysts’ average estimate of C$1.08, according to LSEG data.
(Reporting by Sourasis Bose in Bengaluru; Editing by Mohammed Safi Shamsi)
