Suncor Energy has reported an increase in production for 2017.
The oil giant said in its 2017 Annual Report that it produced 685,300 barrels of oil per day, compared to 622,800 in 2016.
The 10% increase in production generated $9.1 billion in funds from operations, creating shareholder value.
Over the past five years Suncor’s dividend has increased by almost 150%. In 2017, the company reported that $3.5 billion was returned to shareholders, an increase for the 15th consecutive year.
President and Chief Executive Officer Steve Williams said the oil price downturn was an opportunity.
“While many competitors retreated or withdrew, we grew production, reduced costs, increased returns to shareholders by increasing dividends and buying shares back, all while maintaining a strong balance sheet.”
The year brought record production, with the lowest operating costs at $23.80 per barrel, 10% less than the year before.
Now that Fort Hills and Hebron have produced first oil, Suncor plans to reduce capital spending by as much as $1 billion, while increasing production by more than 10%.
According to the report the company can now generate sufficient funds from operations at $40(US) to $45(US) per barrel.
Last year Suncor also released their first stand-alone climate report and sold 49% interest in the East Tank Farm Development to the Fort McKay and Mikisew Cree First Nations
