Suncor Energy Q4 Operating Earnings Down - Quick Facts

(RTTNews) - Suncor Energy Inc. (SU.TO, SU) reported fourth quarter operating earnings of C$973 million or C$0.66 per common share, compared to C$988 million or C$0.65 per common share last year. Operating earnings were positively impacted by the weaker Canadian dollar in the quarter.

Cash flow from operations was C$2.350 billion or C$1.58 per common share, higher than the C$2.228 billion or C$1.46 per common share in the prior year, and increased due to settled gains on the company's trading strategies and was largely impacted by the same factors that impacted operating earnings.

Net earnings were C$443 million or C$0.30 per common share, compared with a net loss of C$574 million or C$0.38 per common share last year.

Net earnings were impacted by the factors that affected operating earnings in addition to after-tax impairment charges, net of related provisions of C$340 million against assets in Syria, Libya and North America Onshore, a favourable after-tax adjustment of C$69 million and an after-tax foreign exchange loss on the revaluation of U.S. dollar denominated debt of C$259 million.

Suncor's quarterly total upstream production rose to an average of 558,100 barrels of oil equivalent per day (boe/d) from 556,500 boe/d last year, reflecting an 18% increase in production for the Oil Sands segment, more than offsetting the reduced production from the sale of the company's conventional natural gas business.

The company also announced that its board approved a 15% increase to quarterly dividend to C$0.23 per common share beginning in the first quarter of 2014. This increase comes some nine months after the company increased the dividend by 54% in 2013.

Suncor also received Board of Director approval to allow for up to an additional C$1 billion worth of common shares to be purchased for cancellation, subject to regulatory approval.

Looking ahead, the company cuts Total production guidance to 525,000 boe/d-570,000 boe/d from 565,000 boe/d-610,000 boe/d as a result of the changes in outlook for Exploration and Production.