Suncor Energy reported a net profit of C$1.57 billion, or $1.14 for the second quarter of the year, attributing it to stronger production and higher oil prices. On a per-share basis, earnings came in at C$1.27, which was higher than analysts' expectations, which stood at an average of C$1.08, based on LSEG data reported by Reuters.
The result, however, was lower than both the net figure for the first quarter of 2024 and the one for the second quarter of 2023.
The oil sands major said its production during the reporting quarter had averaged 771,000 barrels daily, with refinery throughput at 431,000 barrels daily.
For the first half, Suncor said it had achieved a record rate of production at 803,000 barrels daily, while refinery throughput had averaged 443,000 barrels daily.
"Following a strong first quarter, the second quarter was about execution and momentum. High-quality execution of major upstream and downstream turnaround activities and maintaining momentum in targeted improvement priorities, including operational reliability and cost management," chief executive Rich Kruger said.
Suncor is one of Canada's oil producers planning to boost production further as the expanded Trans Mountain pipeline entered into operation earlier this year. Production growth began even before the expanded piece of infrastructure started operations while demand for the crude has yet to pick up significantly enough to affect prices in any palpable way. Canadian crude is currently trading at a discount of around $15 to WTI.
Even so, prices were higher than a year ago, helping Suncor post higher operating earnings, along with its higher production-some of that higher production came from newly acquired assets Suncor snapped up when TotalEnergies was selling its oil sands operations last year. For the rest of the year, Suncor plans no changes to its original production forecasts.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
Charles is a writer for Oilprice.com More