Suncor Energy Q2 Net Earnings Surge

(RTTNews) - Suncor Energy Inc. (SU.TO, SU) reported that its net earnings were C$729 million and C$0.50 per share in the second quarter of 2015, compared with net earnings of C$211 million and C$0.14 per common share in the prior year quarter, which included impairment charges.

Net earnings for the second quarter of 2015 included a C$423 million deferred income tax charge related to a 2% increase in the Alberta corporate income tax rate. During the second quarter of 2015, the company also recorded an after-tax foreign exchange gain on the revaluation of U.S. dollar denominated debt of C$178 million and an after-tax gain of C$68 million on the disposal of the company's share of certain assets and liabilities of Pioneer Energy in the Refining and Marketing segment.

Net earnings in the prior year quarter included after-tax impairment charges of C$718 million on the company's interest in the Joslyn mining project, C$297 million against the company's Libyan assets, and C$223 million on various Oil Sands assets, partially offset by an after-tax foreign exchange gain of C$282 million.

Operating earnings were C$906 million and C$0.63 per share compared to C$1.135 billion and C$0.77 per share, in the prior year quarter, reflecting the lower crude oil price environment. Analysts polled by Thomson Reuters expected the company to report earnings of C$0.33 per share. Analysts' estimates typically exclude special items.

Suncor Energy's Board of Directors has approved a quarterly dividend of C$0.29 per share on its common shares, payable September 25, 2015 to shareholders of record at the close of business on September 4, 2015.

The 2015 outlook range for capital expenditures has been lowered from C$6.2 billion - C$6.8 billion to C$5.8 billion - C$6.4 billion as non-essential projects have been re-evaluated as part of the company's cost reduction initiatives and overall approach to capital discipline.