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Production up and earnings down in Suncor's Q1

Suncor, oilsands project

Earnings are down and production is up for Suncor’s first quarter results.

It’s bottom line fell $350-million to $1.1 billion.

It says some of that decline is because of the decision to cancel its unfeasible Voyageur upgrader in March.

It was a $1.75-billion joint venture with French energy giant Total S.A. in 2010.

Suncor took a $1.49-billion write off for it in the fourth quarter of last year.

Cash flow, which measures the company’s ability to start new projects, fell 5 percent to $2.28-billion.

It’s oilsands production rose 17 percent to a record 357,800 barrels per day.

A decision is still expected on whether to go ahead with the companies’ jointly-owned Fort Hills mine this year.

But the timeline on the fate of the Joslyn oilsands mine has yet to be decided.

In addition to its oilsands, Suncor’s assets lie in the U.K. North Sea, off Canada’s East Coast, four refineries and a chain of Petro-Canada-branded gas stations.

Cancelling the upgrader also freed up cash to support its flagging stock price.

It announced a 54 per cent dividend hike and a $2-billion share buyback program.

April 30th, 2013