Friday, December 9

Suncor reports net loss in third quarter as it takes writedown on Fort Hills

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CALGARY — Suncor Inc. says it recorded a net loss of $609 million in the third quarter as it took a writedown of $3.4 billion against its share of the Fort Hills oilsands mine.

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The net loss, which works out to 45 cents per common share, is in contrast to an $877 million profit, or 59 cents per common share, in the prior year’s quarter.

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Suncor announced last week it will buy out Teck Resources Ltd.’s 21.3 per cent stake in the Fort Hills oilsands project for approximately $1 billion. The agreed-upon sales price reflects a lower market value for the mine, resulting in a non-cash impairment charge.

On an adjusted basis, Suncor says it earned $2.6 billion for the three months ended Sept. 30, or $1.88 per share, compared to $1.0 billion or 71 cents per common share in the same three months of 2021.

The adjusted profit from operations was primarily due to significantly higher crude oil prices and higher upstream production, partially offset by increased income taxes, royalties and operating expenses.

Suncor’s total upstream production increased to 724,100 barrels of oil equivalent per day (boe/d) in the third quarter of 2022, compared to 698,600 boe/d in the prior year’s quarter. Refinery crude throughput was 466,600 barrels per day and refinery utilization was 100 per cent in the third quarter of 2022, compared to 460,300 barrels per day and 99 per cent in the third quarter of 2021.

This report by The Canadian Press was first published Nov. 2, 2022.

Companies in this story: (TSX:SU)