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Suncor's fourth quarter profit is up on higher oil production and fuel sales volumes

Suncor Energy, a Canadian integrated oil and gas company, beat analyst's expectations for the fourth-quarter profits on Wednesday. The firm's higher oil production and high refined product sales volumes helped it to achieve this.

Trans Mountain Pipeline project started commercial operations in the United States last year. It increased the country's transportation capacity, and provided access to markets in Asia and on the U.S. West Coast.

The new pipeline has almost tripled the amount of crude oil flowing from Alberta's oilsands to British Columbia, on the Pacific Coast. This is now 890,000.

Suncor, based in Calgary, Alberta, increased its upstream production to 875,000 barrels per day (bpd) during the fourth quarter of last year from 808,000 barrels per day a year earlier.

The company reported that its refinery output increased to 486,000 barrels per day (bpd) during the third quarter. Its refinery utilization also more than doubled. Suncor's refined product sales also reached a record, with 6% growth at 613 300 bpd.

The Canadian oil industry is now preparing for the impact of President Donald Trump's proposed tariffs against the country. Canada exports a large amount of crude oil to the U.S.

Suncor has reaffirmed that it expects to increase oil and gas production, as well as reduce spending by 2025.

According to LSEG, on an adjusted basis the company earned C$1.25 per share ($0.8733), compared to the average analyst expectation of C$1.10. (1 Canadian dollar = 1.4313 dollars) (Reporting and editing by Shilpa Majumdar, Shounak Dasgupta).

(source: Reuters)