Suncor Energy, Canada’s second-largest oil producer, has exceeded expectations in its first quarter adjusted operating earnings of C$1.41 per share (C$1.8 billion) for the quarter ended March 31, compared with analysts’ average estimate of C$1.29 per share, according to LSEG data.
The Calgary-based company saw an increase in adjusted funds from operations, reaching C$3.169 billion compared to C$3.002 billion in the same period last year. Additionally, cash flow provided by operating activities also showed a growth, reaching C$2.787 billion from C$1.039 billion in the same period last year.
Suncor reported a record upstream production of 835,300 barrels per day (bbl/d) in the first quarter, a 12.6% increase from the previous year. This includes a record high of 785,000 bbl/d in oil sands output and 102% upgrader utilization.
The company returned $1.0 billion to shareholders via $700 million in dividends and $300 million in share repurchases.
“Our strong 2024 first quarter performance continued to build on the momentum established in the second half of 2023, with our workforce safely and cost-effectively delivering record high volumes and reliability across the board, upstream and downstream,” said Rich Kruger, Suncor’s President and Chief Executive Officer. “Our determination to consistently achieve the highest levels of performance starts with a top-to-bottom focus on the fundamentals of safety, reliability, and profitability and continues with a sense of accountability to deliver on our commitments.”
Suncor achieved its highest-ever first-quarter refining throughput at 455,300 bbl/d, a 23.8% increase from the previous year. Refinery utilization was also at a high of 98%, compared to 79% in the same period last year.
Notably, the global demand for refined products has remained high, with Russian refinery outages and heavy refinery turnarounds leading to tightened fuel supplies.