The Calgary-based company said on Tuesday a net loss of $ 3.53 billion for the first quarter, compared to a profit of $ 1.47 billion a year earlier. In addition to weak commodity prices, the quarterly loss also included the impact of almost $ 1.8 billion in impairment charges.
To protect its balance sheet, Suncor has announced that it will reduce its quarterly dividend by approximately 55% to $ 0.21 per share from $ 0.465. It also suspends share buybacks and has reduced this year’s capital spending budget range by an additional $ 400 million.
Suncor said that as of March 31, it had $ 8.1 billion in cash. Since the end of the quarter, it has launched $ 1.25 billion in debt financing and has also obtained $ 300 million in credit facilities.
“In these unprecedented conditions, our strategy stands out as a competitive differentiator,” said CEO Mark Little in the statement Tuesday. “Our physically integrated model, combined with our disciplined financial management and capital allocation practices, provides resilience through these rapidly changing market conditions. “
On an operational basis, Suncor lost $ 309 million, or $ 0.20 per share, in the first quarter, compared to operating income of $ 1.2 billion, or $ 0.77 per share, a year ago. earlier.
Total upstream production for the company fell to 739,800 barrels of oil equivalent per day from 764,300 a year earlier.