Suncor Energy, Inc. - SU STOCK NEWS

Suncor, a major player in Canada’s energy sector, announced plans to become the operator of the Syncrude project, owning 58.74% of the joint venture. This transition, expected by end of 2021, aims to unlock $300 million in annual synergies and enhance competitiveness. The company targets a cash operating cost of C$30/bbl and 90% utilization. The integration of operations through completed bi-directional pipelines is anticipated to improve efficiency and flexibility. The strategy follows an increase in Suncor's ownership in Syncrude from 12% to 58.74% since 2016.

Suncor Energy has announced a quarterly dividend of $0.21 per share on its common shares. This payment is set for December 24, 2020, to shareholders of record by December 3, 2020. As Canada's leading integrated energy company, Suncor's operations encompass oil sands development, petroleum refining, and offshore oil production, with a commitment to sustainability and renewable energy. The company is listed on the Toronto and New York stock exchanges under the symbol SU.

Suncor announced the appointment of Jean Paul (JP) Gladu to its Board of Directors, effective November 17, 2020. With over 25 years of experience in building relationships among Canada’s natural resource sectors and Indigenous communities, Gladu is expected to bring significant insights to the board. He is currently the President of A2A Rail and serves on the Board of Noront Resources. Gladu holds several degrees, including an Executive MBA from Queen’s University. His appointment reflects Suncor's commitment to governance and the development of Indigenous-owned businesses.

Suncor Energy reported a third-quarter net loss of $12 million ($0.01 per common share) for 2020, a significant decline from net earnings of $1.035 billion in the same quarter of 2019. Funds from operations rose to $1.166 billion ($0.76 per share) compared to $2.675 billion in Q3 2019. The company’s operating loss reached $302 million due to a decrease in crude oil realizations as the pandemic affected demand. Upstream production decreased to 616,200 boe/d, down from 762,300 boe/d year-over-year, while maintaining a focus on operational resilience and cost reductions, targeting $1 billion in operating cost cuts.

Suncor Energy will release its third quarter financial results on October 28, 2020, at 8:00 p.m. MT. A webcast for analysis will occur the next day, October 29, at 7:30 a.m. MT, featuring Mark Little (CEO) and Alister Cowan (CFO). Analysts can participate in a Q&A session following management remarks. The company, a leader in Canada's integrated energy sector, focuses on oil sands, offshore production, and renewable energy initiatives.

Suncor has received a gold-level re-certification in the Progressive Aboriginal Relations (PAR) program from the Canadian Council for Aboriginal Business. This recognition underscores Suncor's commitment to Indigenous collaboration, having invested $6 billion in Indigenous businesses since 1999. In 2019 alone, Suncor spent $836 million on Indigenous procurement, accounting for 8% of its total supply chain spend. The PAR certification evaluates corporate performance in Aboriginal relations across leadership, employment, business development, and community relationships.

Suncor has provided an operational update following a fire incident at its Base Plant, reporting restored production of 165,000 bbls/d and anticipating full rates of 300,000 bbls/d by Q4. Despite challenges from low oil prices and the pandemic, Suncor focuses on enhancing performance and cutting costs. The revised 2020 production guidance is set to 680,000 – 710,000 bbls/d. Capital expenditure guidance is adjusted to C$3,600 – C$4,000 million. The company expects insurance to cover most repair costs from the incident, highlighting its strategic maintenance and production ramp-ups at various facilities.

On August 14, 2020, a fire occurred in the secondary extraction area of Suncor's Base Plant mining operations, impacting bitumen production. The fire was contained without injuries, and all personnel were evacuated safely. Current operations are being adjusted, with both upgraders online processing in situ bitumen. Suncor expects to resume mined bitumen production by early September and will provide further operational updates as necessary.

Suncor Energy reported significant challenges in its second quarter of 2020 due to the COVID-19 pandemic and OPEC+ supply issues, resulting in a net loss of $614 million ($0.40 per share) compared to net earnings of $2.729 billion in the prior year quarter. Funds from operations plummeted to $488 million ($0.32 per share) from $3.005 billion. However, the company is on track to meet its operating cost reduction target of $1 billion and is implementing measures to enhance operational flexibility and digital transformation. Refinery utilization averaged 76%, with total upstream production dropping to 655,500 boe/d.