Suncor Earns Major Profit in Second Quarter, Cenovus Reports Loss

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Suncor Earns Major Profit in Second Quarter, Cenovus Reports Loss

It was a successful second quarter for Suncor Energy despite operations halting at Syncrude.

The Calgary-based company posted net earnings of $972 million, compared to the $435 million they made in 2017.

Suncor says the increase was because of improved crude oil pricing – mostly due to the Syncrude power outage which has increased the price per barrel as demand remains relatively high.

Syncrude was still able to average 117,800 bbls/d, up from the 61,000 bbls/d in the previous year. Last year’s low production was attributed to the fire at their Mildred Lake Upgrader.

“We want to reiterate our belief in Syncrude's longterm potential and ability to achieve sustained reliability improvements, despite our disappointment with recent operational performance," said Steve Williams, President and CEO.

“From experience, we know that longterm reliability is a journey and we are working with the owners to advance strategic initiatives in order to achieve our reliability and cost goals."

Suncor notes the increase production at Fort Hills, north of Fort McMurray, is helping the company keep their 2018 expectations relatively the same from the beginning of the year.

The oil giant is now expecting production of 415,000 - 430,000 bbls/d, down from 425,000 - 455,000 bbls/d.

Cenovus

Cenovus energy reached record high production volumes last quarter.

According to the company’s second-quarter report, production reached 390,000 bbls/d – 49 per cent higher than the same period of 2017.

This also resulted in a record low oilsands operating costs of $7.32 a barrel.

Despite this, they posted an operating loss from continuing operations of $292 million compared with operating earnings of $298 million the previous

year.

Meanwhile, Cenovus says the majority of the work at Christina Lake is being deferred to 2019, as it’s not required this year.

Construction at the Christina Lake phase G expansion also remains on time and on budget.
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