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Suncor Lifts Dividend as Soaring Output and Refining Drive Strong Profit
Canada’s oil producer Suncor Energy (NYSE: SU) raised its quarterly dividend after beating analyst estimates of its third-quarter profit, thanks to record Q3 production and its highest-ever refining throughput.
Suncor Energy reported adjusted earnings per share of US$1.06 (C$1.48) for the third quarter, higher than the LSEG-compiled average analyst estimate of US$0.77 (C$1.08) per share.
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In the upstream, the company reported production of 829,000 barrels per day (bpd), with 99% utilization of upgraders, marking the best third quarter ever for output.
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Suncor also saw its highest-ever refining throughput in the third quarter, at 488,000 bpd, with overall utilization jumping to 105%, up from 99% for the third quarter of 2023.
In addition, refined product sales averaged 612,000 bpd between July and September, which was the third consecutive quarter of record sales, Suncor said. The rise in product sales was primarily due to higher refinery throughput and the company “leveraging its extensive domestic sales network and export channels.”
Gasoline and jet fuel demand in the United States, a key market for Canadian crude producers and refiners, hit this summer the highest level since the summer of the pre-pandemic 2019.
“Whereas the second quarter was about executing major planned maintenance activities and building momentum, the third quarter was about performing and delivering on commitments, which is exactly what Suncor did,” Suncor’s president and chief executive officer, Rich Kruger, said in a statement.
Subsequent to the third quarter, Suncor’s board of directors approved an increase in the quarterly dividend, by around 5% over the prior quarter’s dividend, to US$0.41 (C$0.57) per share.
Going forward, Suncor and other Canadian producers are likely to benefit from the upcoming Trump administration and his energy agenda, as the president-elect is expected to exempt Canadian oil flows from the trade tariffs he has pledged to slap on American trade partners.
By Tsvetana Paraskova for Oilprice.com
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