Suncor reports second quarter net loss of $ 614 million due to lower production

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CALGARY – Suncor Energy Inc. reports a net loss of $ 614 million in the second quarter after cutting production to deal with sharply falling crude prices amid declining global energy demand.The loss, which is equivalent to 40 cents per share, compares to net income of $ 2.73 billion or $ 1.74 per share in the same period of 2019, but exceeds analysts’ expectations of a loss of 1 , $ 28 billion, according to Refinitiv.

The net loss includes an unrealized after-tax foreign exchange gain of $ 478 million on the revaluation of US dollar denominated debt.

Suncor’s total production was 655,500 barrels of oil equivalent per day for the three months ended June 30, down 18.5% from the 803,900 boe / d in the previous year’s quarter as it took measures, including shutting down one of two production trains at its Fort Hills Oil Sands Mine in northern Alberta.

It says refinery crude throughput was 350,400 barrels per day, with utilization falling to 76 percent in the second quarter, down 12 percent from 399,100 bpd and utilization of 86 percent. percent the previous year.

Suncor reports an operating loss of $ 1.49 billion, compared to operating income of $ 1.25 billion in the second quarter of 2019.

“We have experienced unprecedented volatility this quarter in all facets of our business as the COVID-19 pandemic and OPEC + supply issues continued to impact the industry,” said CEO Mark Little in a statement.

“The company has taken decisive action to address both of these issues, enabling us to manage this period of volatility and maintain financial resilience for the future.



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