As investors abandon their oil holdings, Canadian Natural overtakes Suncor as Canada’s most valuable energy company

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Even with the premium offered, TC Pipelines shares are still down 32% year-on-year as the coronavirus pandemic has been on the downside for all companies in the oil and gas industry.

“Everyone has had a difficult year. Suncor has had an increasingly difficult year, ”said BMO’s Ollenberger. “In addition to the collapse caused by the coronavirus pandemic in both oil prices and refining margins, Suncor had to contend with the fact that its Edmonton refinery was down for eight weeks, there was a The unplanned outage has still not been able to bring its recently built Fort Hills oil sands mine to full capacity.

Everyone has had a difficult year. Suncor has had an increasingly difficult year

Randy Ollenberger, BMO Capital Markets Analyst

Suncor, once the second most valuable company in Canada behind the Royal Bank of Canada, has fallen 63% this year, from $ 42.56 per share on Jan.1 to $ 15.55 each on Oct. 1, the price the company’s lowest since 2003, when it was a much smaller oil producer. RBC also lost its crown to Shopify Inc.

Shares of the company have risen slightly since it announced its intention to lay off up to 2,000 people, or 15% of its employees, on October 2. Suncor’s shares traded less than 1% at $ 15.97 every Monday noon.

Ollenberger said that at recent prices, the value of Suncor’s downstream business is not reflected properly in the company’s stock and recommends investors increase their positions.

Suncor and Imperial are on track to deliver significantly improved refining results in their third quarter results, analysts at Tudor Pickering and Holt wrote in a research note Monday. They expect Suncor and Imperial’s refining operations to outperform Husky and Cenovus.

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