Suncor Energy Q2 Earnings Plunge, But Operating Earnings Rise - Quick Facts

(RTTNews) - Suncor Energy Inc. (SU.TO, SU) reported second-quarter net earnings of C$211 million or C$0.14 per common share, sharply lower than C$680 million or C$0.45 per common share in the year-ago quarter.

The company noted that net earnings included after-tax impairment charges of $718 million against the company's interest in the Joslyn mining project, $297 million against the company's Libyan assets, and $223 million related to other Oil Sands assets.

Operating earnings for the quarter was C$1.135 billion or C$0.77 per common share, compared to C$934 million or C$0.62 per common share in the prior-year quarter.

Cash flow from operations was C$2.41 billion or C$1.64 per common share, compared to C$2.25 billion or C$1.49 per common share last year.

The company said these results were led by strong upstream price realizations and increased production at oil sands. This was partially offset by lower production volumes in exploration and production, as well as higher share-based compensation expense and natural gas input costs. Average production volumes for Oil Sands operations increased to 378,800 barrels per day (bbls/d) from 276,600 bbls/d in the prior-year quarter.

Suncor's board of directors also approved a 22 percent increase in dividend to $0.28 per common share, reinforcing its commitment and ability to return cash to shareholders.

Looking ahead to 2014, the company slashed capital expenditures outlook to $6.8 billion from from the prior projection of $7.8 billion, demonstrating Suncor's ongoing commitment to capital discipline.