Suncor breaks production records amid economic uncertainty, cold snap
Oil sands producer Suncor Energy Inc. has reported quarterly production and refining records, despite Alberta's February deep freeze and an uncertain global economic environment.
Production for the Calgary-based oil giant hit 853,000 barrels a day in the first quarter of 2025 – the company's highest-ever first quarter and the second-highest quarter in its history, chief executive officer Rich Kruger told analysts on an earnings call Wednesday.
Suncor's net earnings for the first three months of 2025 were $1.69-billion, or $1.36 per share, up from $1.61-billion or $1.25 per share in the same period last year. Gross revenues were $13.33-billion, up from $13.31-billion.
Refining throughput was 483,000 barrels a day, 'far and away the highest first quarter in our history,' Mr. Kruger said, with every refinery producing more than at the same time last year. Refined product sales hit 605,000 barrels a day.
'The bottom line: One year into our three-year plan, we've exceeded every single target. We've essentially achieved two years of our planned improvements in the first year,' Mr. Kruger said.
'In 1954 a gentleman named Roger Bannister, the world's first four-minute miler, said, 'Records are meant to be broken.' And that is exactly what Suncor teams continue to do.'
Like other oil sands producers, Suncor's production slowed in February when Alberta was hit with a brutal, record-breaking cold snap. Mr. Kruger said the key to avoiding a complete slowdown is learning from past winters and making sure equipment is resilient – whether it's the fuel in haul trucks or the winterization of refineries.
'The last time I checked, it's always cold in Canada in the first quarter,' he said.
'We face this uncertainty, this variability, every year. The last two years, we have been very focused on, 'How do we engineer or design out the risk of that variability?''
Amid strong production, Suncor continues to assess its 1,800 Petro-Canada gas stations. It is upgrading those in major markets with the highest margins and selling those on the other end of the spectrum, with the goal of transforming 20 per cent of its network by the end of 2026.
The company's retail portfolio was a point of contention for activist investor Elliott Investment Management LP, which in 2022 pushed for a shakeup of Suncor and launched a campaign to oust several directors and explore a sale of the Petro-Canada chain.
Then-CEO Mark Little resigned, and Mr. Kruger took the reins of the company in 2023. People close to Elliott in 2024 said the fund was pleased with the improvement in Suncor's fiscal fortunes under the new CEO and happy to let the retail strategy play out.
Asked how Suncor views its Petro-Canada assets these days, Mr. Kruger said Wednesday, 'The only thing I unconditionally love are my kids and my grandkids. Everybody else has to earn their seat at the table.'
That doesn't mean he's keen to sell off the gas stations.
'I never say never, but right now that is a very, very valuable part of the company's operations,' he said.
'We look at all of our assets for their ongoing contribution and their value to us,' and the sites are a boon, he said, allowing Suncor to integrate its operations all the way from production to sales.
Suncor's retail volumes were up 6 per cent in the first quarter, and its truck stop business was up 9 per cent.
But even with record throughput at refineries, the company's exports were down 25 per cent in the quarter. Mr. Kruger said keeping more products in the domestic market played a big role in driving margin improvement.
Menno Hulshof, with TD Cowan Equity Research, wrote in a note Wednesday that the first-quarter results continued Suncor's 'trend of outperformance,' despite the February cold snap. He added that the company's 2025 production guidance is likely conservative and should slowly increase to capture its new normal.
'Given a much improved cost structure, strong balance sheet' and significant operational momentum, Mr. Hulshof wrote, Suncor is likely well-positioned to weather the current market volatility.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Globe and Mail
34 minutes ago
- Globe and Mail
Demand for oil to soar 44 per cent from now until 2050, OPEC's secretary-general tells Calgary gathering
There is no oil demand peak on the horizon, the head of the OPEC says, taking aim at a 'flip flop' in policy from the International Energy Agency which he says have undercut crucial investments in the oil and gas sector. Haitham al-Ghais, the Secretary-General of the Organization of Petroleum Exporting Countries, said Tuesday at the Global Energy Show in Calgary that the group projects global oil demand will surpass 120 million barrels a day by 2050. 'In our long-term projections, we see the forecast that global primary energy demand is going to increase by a staggering 44 per cent from now to 2050,' he said. 'Our forecasts are not based on ideology. They are based on data and analysis of data, and they clearly indicate that oil would remain an integral part of the energy mix at around 30 per cent still in 2050,' he said. Meeting that ever-rising demand will only be possible with adequate and timely and necessary investments in the oil industry, he said. But comments by the International Energy Agency have threatened those investments, he said. 'OPEC has been very concerned by the IEA's flip-flop on the critical issue of industry investments,' he said. Mr. al-Ghais specifically pointed to IEA reports between 2017 and 2020, which projected that oil would remain a cornerstone of global energy security. But in 2021, it changed its tune, saying there should be no investments in new oil and gas projects. But now the IEA has once again stressed the importance of oil industry investment, he said. Mr. al-Ghais also addressed the issue of climate, saying OPEC recognizes the importance of investing in technologies such as carbon capture and storage to battle greenhouse gas emissions. Member countries are all signatories to the Paris Agreement, he noted, and recognize the importance of investing in green sources of energy, 'because energy sources are not locked in a zero sum competition.' Rather, he said, 'all forms of energy will be needed to meet future demand and growth.' Plastics made from oil will be needed for the synthetic resins and polymers used for the blades of wind turbines, for example, solar panels and electric vehicles, he said. While he pushed for developed countries to support other economies through climate finance technology funding, he added 'there is no one size fits all solution to addressing the climate matters.' 'We welcome the recent moves towards policies grounded and pragmatic energy realities, and that recognize that we face an emissions challenge and not an energy sources challenge.' The veteran Kuwaiti oil executive was invited to the conference by Alberta Premier Danielle Smith. Dialog between OPEC and Alberta dates back to 1989, Mr. al-Ghais said, adding the group is committed to continue discussions with producers around the world, including Canada. 'We are acutely conscious of the important role that other major producers around the world, including Alberta, play in the international oil market and in the industry,' he said. 'International orientation is important, given the rapidly evolving global energy landscape.' OPEC+, which pumps about half of the world's oil and includes OPEC members and allies such as Russia, has put forward plans for an increase of 411,000 barrels per day for July as it looks to wrestle back market share and punish over-producers. It is set to unwind production cuts for the fourth straight month. Mr. Al Ghais' comments come in the wake of forecasts by research firms and the U.S. Energy Information Administration that oil demand growth and crude prices will fall by the end of the year. Growth in global oil demand for the rest of the year is expected to fall to one of its weakest levels since 2001, says research firm S&P Global, which this week revised its price outlook for West Texas Intermediate benchmark crude down to as low as the upper-US$40 mark. The United States is expected to bear the brunt of the impacts from an oversupplied market, because U.S. shale production is more responsive to price shifts compared with other sources of non-OPEC supply, such as Canada, Guyana and Brazil.


National Post
43 minutes ago
- National Post
Montreal billionaire Robert Miller too sick for trial on sex charges, judge says
A Quebec Superior Court judge has stayed criminal charges against Montreal billionaire Robert Miller. Article content The Crown agreed on Monday to a motion by the defence that Miller, who is suffering from Parkinson's disease, is too ill to stand trial on 24 sex-related charges. Article content The founder of global electronics distributor Future Electronics was initially arrested in May 2024 on 21 sex charges involving 10 complainants. Article content In December, three new charges were filed by the Crown for crimes alleged to have taken place between 1995 and 2000. Article content Many of the complainants were minors when the alleged offences occurred. Article content Miller's lawyers had sought a stay of proceedings in April, arguing their 81-year-old client was not well enough to stand trial. Article content


CTV News
43 minutes ago
- CTV News
Canadians believe they need $1 million to retire comfortably: report
Canadians preparing to retire believe they need $1 million or more to retire comfortably, according to Fidelity Canada's 2025 retirement report. This is the 20th year for the annual report, which shares the latest insights on Canada's retirement landscape. The study was done between March 13 and March 28, 2025, with 2,000 Canadians surveyed. The median age of participants was 62. Here are some of the report's key findings: 88 per cent of respondents agree retirement today is more complex than it was 20 years ago pre-retirees aged 45 and up believe they need at least $1,020,000 to achieve a comfortable retirement – more than double the amount 20 years ago in 2005, the same age group felt they needed $447,000 to retire, which equates to $685,000 in 2025 81 per cent of retirees feel positive about retirement, while only 59 per cent of pre-retirees feel positive 85 per cent agree retirement is about transitioning to flexible work arrangements or passion projects rather than stopping work completely Inflation, current turmoil in world politics and poor economic growth were cited as the main concerns for Canadians, according to the report. Uncertain times can affect pre-retirees, who are still in a period of accumulating wealth to support their retirement. Due to rising costs of living, 46 per cent of pre-retirees say they might postpone retirement to later than they planned. In 2005, the average age of retirement was 61, which has risen to 65 in 2025. Only 26 per cent of current pre-retirees plan to retire under 65. Canadians who have a financial advisor and written financial plan say they feel more prepared for their retirement. Women and those not born in Canada had a less positive outlook on their retirement. Fidelity Canada said this shows there isn't a one-size-fits-all approach to financial planning.