Latest news with #SuncorEnergyInc.
Edmonton Journal
5 days ago
- Business
- Edmonton Journal
These trucks weigh almost as much as a fully-loaded 747 jet — and no one's driving them
Article content Suncor Energy Inc. is escalating the rollout of its massive 400-tonne capacity driverless trucks, a move the company says will cut costs and improve safety, but it's also expected to eliminate jobs. Article content The company said Wednesday it plans to expand its autonomous fleet to 150 or more by the end of the year, up from just 20 trucks that were in operation in the spring of 2024. Article content Article content 'All the expected benefits, safety, direct cost, productivity . . . we are on track to see or achieve all of those, or more than we would have hoped for,' Rich Kruger, Suncor's chief executive, said Wednesday during a conference call on the company's earnings. Article content Article content Despite 'ongoing commodity price volatility' this spring, Suncor managed to collect nearly $1.7 billion in profits, up by more than $100 million from the same time last year. The company has also set records for production in each quarter of the past year, and returned $1.45 billion to its shareholders in the latest stretch. Article content When the Calgary-based company began rolling out its fleet of driverless trucks 2018, it said the move would eliminate 400 jobs overall, though Suncor also vowed to minimize the impact and retrain workers. Article content Suncor said its driverless fleet is the largest of its kind in Canada, deploying the hulking vehicles to some of its oilsands mines. Article content Article content The company has seen some efficiency gains and improvement in productivity as a result, according to Peter Zebedee, an executive vice-president. Article content 'We really see this as a strategic move for us. It helps us to improve safety,' said Zebedee. Article content Like other oil producers, Suncor is dealing with an uncertain economic backdrop. Oil prices ranged widely in a short window, averaging US$63.70 per barrel for the second quarter, a near US$8 dip from earlier in the year.
Calgary Herald
6 days ago
- Business
- Calgary Herald
These trucks weigh almost as much as a fully-loaded 747 jet — and no one's driving them
Article content Suncor Energy Inc. is escalating the rollout of its massive 400-tonne capacity driverless trucks, a move the company says will cut costs and improve safety, but it's also expected to eliminate jobs. Article content The company said Wednesday it plans to expand its autonomous fleet to 150 or more by the end of the year, up from just 20 trucks that were in operation in the spring of 2024. Article content Article content 'All the expected benefits, safety, direct cost, productivity . . . we are on track to see or achieve all of those, or more than we would have hoped for,' Rich Kruger, Suncor's chief executive, said Wednesday during a conference call on the company's earnings. Article content Article content Despite 'ongoing commodity price volatility' this spring, Suncor managed to collect nearly $1.7 billion in profits, up by more than $100 million from the same time last year. The company has also set records for production in each quarter of the past year, and returned $1.45 billion to its shareholders in the latest stretch. Article content When the Calgary-based company began rolling out its fleet of driverless trucks 2018, it said the move would eliminate 400 jobs overall, though Suncor also vowed to minimize the impact and retrain workers. Article content Suncor said its driverless fleet is the largest of its kind in Canada, deploying the hulking vehicles to some of its oilsands mines. Article content Article content The company has seen some efficiency gains and improvement in productivity as a result, according to Peter Zebedee, an executive vice-president. Article content 'We really see this as a strategic move for us. It helps us to improve safety,' said Zebedee. Article content Like other oil producers, Suncor is dealing with an uncertain economic backdrop. Oil prices ranged widely in a short window, averaging US$63.70 per barrel for the second quarter, a near US$8 dip from earlier in the year.
The Market Online
6 days ago
- Business
- The Market Online
Suncor Energy reports Q2 2025 performance amid lower benchmark pricing
Suncor reported $2.7 billion in adjusted funds from operations and C$1.0 billion in free funds flow, with adjusted operating earnings of C$873 million, down from C$1.6 billion in Q2 2024 due to lower benchmark pricing The company achieved record Oil Sands bitumen production of 860,800 bbls/d and refinery throughput of 442,300 bbls/d, with strong performance across upstream and downstream operations despite maintenance impacts Suncor lowered its 2025 capital spending forecast to C$5.7 to C$5.9 billion and adjusted expectations for taxes and royalties to reflect current market conditions Suncor Energy stock (TSX:SU) last traded at C$54.05 Suncor Energy (TSX:SU) announced its Q2 2025 financial results, working through a challenging pricing environment while achieving several production and throughput records. This content has been prepared as part of a partnership with Suncor Energy Inc. and is intended for informational purposes only. The company generated C$2.7 billion in adjusted funds from operations and C$1.0 billion in free funds flow during the quarter. Adjusted operating earnings came in at C$873 million, or $0.71 per common share, down from C$1.626 billion (C$1.27 per share) in Q2 2024. The decline was primarily attributed to lower upstream price realizations, consistent with reduced benchmark pricing, partially offset by lower royalties and income taxes, and increased sales volumes across both upstream and downstream operations. Net earnings for the quarter totalled C$1.134 billion ($0.93 per share), compared to C$1.568 billion (C$1.22 per share) in the same period last year. Operationally, Suncor achieved a Q2 record in Oil Sands bitumen production, reaching 860,800 barrels per day (bbls/d), up from 834,400 bbls/d in Q2 2024. This included record production at the Firebag facility. However, synthetic crude oil production declined to 438,200 bbls/d, impacted by upgrader maintenance activities, including the Upgrader 1 coke drum replacement and turnaround, which concluded after the quarter. Non-upgraded bitumen production rose to 310,200 bbls/d, up from 254,300 bbls/d a year earlier, driven by increased bitumen output and reduced upgrader availability. Meanwhile, Exploration and Production volumes increased to 59,700 bbls/d, supported by higher output at Hebron and the restart of White Rose in Q1 2025. On the downstream side, Suncor set a second quarter record for refinery throughput, processing 442,300 bbls/d with 95 per cent utilization, compared to 430,500 bbls/d and 92 per cent in Q2 2024. Refined product sales also hit a quarterly high of 600,500 bbls/d, up from 594,700 bbls/d, reflecting higher throughput and progress on the company's retail growth strategy. Suncor also revised its 2025 corporate guidance, lowering its full-year capital expenditure estimate from C$6.1 to C$6.3 billion to C$5.7 to C$5.9 billion, and adjusting expectations for income taxes, royalties, and other business environment factors to reflect current market conditions. 'What stands out the most about our strong second quarter is the outstanding execution of major upstream and downstream turnaround activities, completed safely and ahead of schedule,' Rich Kruger, Suncor's president and CEO stated in a news release. 'This performance was a key driver behind Suncor's record-setting second quarter and first half volumes results and positions us extremely well for a strong second half of the year. The quarter once again demonstrates our unwavering commitment and focus on delivering superior results for our shareholders.' Suncor is a Canadian integrated energy company, including oil sands development, production and upgrading; offshore oil and gas; petroleum refining in Canada and the U.S.; and the Petro-Canada retail and wholesale distribution networks. Suncor Energy stock (TSX:SU) last traded at C$54.05 and has climbed 5.34 per cent since the year began. Join the discussion: Find out what the Bullboards are saying about Suncor Energy and check out Stockhouse's stock forums and message boards. Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here .
Calgary Herald
07-05-2025
- Business
- Calgary Herald
Suncor production hits record high, but sales volumes slow as inventory builds
A strong performance from Suncor Energy Inc.'s downstream operations, including record refinery throughputs and refined product sales, helped it beat analysts' first-quarter earnings expectations. Article content Article content The Calgary-based oilsands major 's adjusted operating earnings of $1.6 billion in the three months ending March 31 were down from $1.8 billion a year ago, but still beat analysts' expectations. Article content Article content Boasting about Suncor's ability to capture margin opportunities in the refining business relative to its peers, chief executive Rich Kruger said the company has emphasized running facilities at full capacity, driving down unit costs and trusting marketing teams to sell the product rather than throttling throughputs to meet anticipated demand. Article content Article content 'Last time I checked, I can never sell a barrel that I don't produce or refine,' he said on a conference call on Wednesday. 'We've turned that around and said, 'Get after it and we'll find valuable homes.' And I think our teams have risen to that opportunity.' Article content Suncor achieved record refined product sales of 604,900 bbls/day in the first quarter, compared to 581,000 bbls/d in the same period last year, driven by higher refinery throughputs and fuel sales across the company's retail Petro-Canada network. Article content For the third consecutive quarter, the company's refining utilization was above 100 per cent, with Suncor's refineries processing a record 483,000 bbl/d during the quarter, compared to 455,300 bbls/d a year ago, equating to a 104 per cent utilization rate. Article content Article content The company also had record upstream production of 853,200 barrels per day (bbls/d), marking a new high for the company, in part due to record-setting bitumen production at its Firebag in-situ mining facility and the resumption of offshore production at its White Rose facility in Newfoundland and Labrador. Article content Article content Capital spending was $1.09 billion, which was below analysts' estimates for the first quarter, but in line with Suncor's 2025 guidance that targeted a midpoint capital spending program of $6.2 billion, according to RBC Capital Markets. Article content Despite the upbeat tone on Wednesday's earnings call with investors, the company acknowledged there are headwinds on the horizon, with prices currently bouncing around US$60 per barrel for benchmark West Texas Intermediate. Suncor said WTI averaged around US$71.40/bbl during the first quarter of 2025. Article content 'I'm very pleased that the significant strides we've made over the last two years to improve our operational and financial performance significantly reduce our WTI break-even and strengthen our balance sheet,' chief financial officer Kris Smith said on the call.
Winnipeg Free Press
07-05-2025
- Business
- Winnipeg Free Press
Heavy lifting begins as Suncor starts refurbishing decades-old upgrader components
CALGARY – Oilsands giant Suncor Energy Inc. has begun a three-month outage at one of its upgraders so it can begin to replace enormous components first installed almost six decades ago. The Calgary-based company is in the midst of a multi-year project to replace eight original coke drums dating back to 1967 at its Base Mine site north of Fort McMurray, Alta., with the goal of extending the upgrader's life by 30 years. The drums, weighing 270 tonnes and standing nearly 30 metres, are used in the upgrading process, where tarry oilsands bitumen is converted into a lighter crude that can then be refined into fuel. Suncor's base plant and upgrader in the oil sands in Fort McMurray Alta, on Monday June 13, 2017. THE CANADIAN PRESS/Jason Franson In a website post last year when one of the drums was being transported from Edmonton to the mine, Suncor said the load took up the entire width of the road, including the shoulder lanes. The outage at the upgrader — one of two at the mine — began on May 1 and is expected to last 91 days. Shelley Powell, the Suncor senior vice-president in charge of major capital projects, says the first major crane lift of equipment was successfully completed over the weekend. The project is using one of the biggest cranes in the world, the Mammoet PTC210DS. 'We were really well prepared. We have all of the pre-work done, and that included actually doing some early planning and preparatory lifts,' Powell told Suncor's first-quarter conference call Wednesday. 'So we practised some of this stuff ahead of time to make sure we had the equipment in the right spot, we had people trained and ready to go, and everybody knew what their role was going to be.' Powell added that some of the operators involved in the project have experience doing similar heavy-lifting jobs elsewhere in the world. CEO Rich Kruger said collaboration between different teams is key to pulling off a project of this scale. 'We have to be seamless in our execution and our handoffs,' he told investors. 'We won't declare victory until we're done, but we feel quite good about our level of preparation and planning.' Desjardins Securities analyst Chris McCulloch said in a note that much is riding on the coke drum replacement going according to plan. 'Maintaining operational momentum will be pivotal for Suncor entering the heaviest stretch of scheduled maintenance this year,' he wrote. 'In our view, success of the Base Plant and other planned turnarounds will materially impact the company's ability to achieve its 2025 production guidance and (capital expenditure) targets, which we maintain have been conservatively set.' Late Tuesday, Suncor said its production for the first three months of 2025 was 853,000 barrels of oil per day, refining throughput was 483,000 barrels per day and refined product sales were 605,000 barrels per day. All three measures set new first-quarter records for the company. Net earnings for the first three months of 2025 were $1.69 billion, up from $1.61 billion during the same 2024 period. That amounted to $1.36 per share versus $1.25 per share. Winnipeg Free Press | Newsletter Winnipeg Jets Game Days On Winnipeg Jets game days, hockey writers Mike McIntyre and Ken Wiebe send news, notes and quotes from the morning skate, as well as injury updates and lineup decisions. Arrives a few hours prior to puck drop. Sign up for The Warm-Up Gross revenues were $13.33 billion, compared to $13.31 billion a year earlier. Adjusted operating earnings, a measure Suncor says provides a better comparison between quarters, were $1.63 billion, down from $1.82 billion, which it says was due to lower crude oil sales. Chief financial officer Kris Smith said Suncor is positioned well to weather a West Texas Intermediate crude price of US$60 per barrel, the level it's been hovering around in recent weeks. This report by The Canadian Press was first published May 7, 2025. Companies in this story: (TSX:SU)
