Suncor reported first-quarter financial results beating analyst expectations on record production, refining rates and refined product sales.
The Canadian energy heavyweight booked a net profit of C$1.69 for the quarter, equal to some $1.23 billion, up significantly on a quarterly basis and also up on an annual basis. Operating profits also rose on a sequential basis but were lower than the year-ago result.
Suncor reported production of 853,000 barrels daily for the first quarter of the year, which was an all-time high for a first quarter. It also posted a record-high first-quarter average daily refining rate of 483,000 barrels and sales of 605,000 barrels daily—another record high for January to March.
“Our focus on the fundamentals, integrated business model, and continually improving cost structure enable us to deliver free funds flow and shareholder value despite the current volatile business environment,” chief executive Rich Kruger said in the company’s first-quarter report.
Suncor returned a total C$1.455 billion over the reporting period, equal to $1.05 billion, which was higher than returns for the first quarter of 2024 but lower than the C$1.713 billion returned over the fourth quarter of last year.
The first-quarter production figure follows a record-breaking rate of production in 2024, when the average daily reached 827,000 barrels. In the fourth quarter, Suncor reached another all-time high, at 874,000 barrels.
The records came amid improved demand prospects following the Trans Mountain pipeline expansion, finally completed after years of delays. The boost in pipeline capacity expanded access to markets for Canadian oil producers in 2024, while high fuel demand in North America during the peak driving season helped the refining business of the integrated firms. Gasoline and jet fuel demand in the United States, a key market for Canadian crude producers and refiners, hit the highest level since the summer of 2019.
By Irina Slav for Oilprice.com
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