Suncor Energy Slips To Loss In Q2

(RTTNews) - Suncor Energy Inc. (SU, SU.TO) reported a net loss of C$614 million or C$0.40 per share in the second quarter of 2020, compared to net earnings of C$2.729 billion or C$1.74 per share in the prior year quarter.

The company's results in the second quarter of 2020 were significantly impacted by the COVID-19 pandemic, which has lowered demand for both crude oil and refined products and, combined with the OPEC+ increase in supply, resulted in a significant decline in commodity prices, compared to the prior year quarter.

The latest-quarter result included a C$478 million unrealized after-tax foreign exchange gain on the revaluation of U.S. dollar denominated debt but excluded the C$397 million after-tax hydrocarbon inventory loss that was recognized in net earnings in the first quarter of 2020.

Quarterly operating loss was C$1.489 billion or C$0.98 per share, compared to operating earnings of C$1.253 billion or C$0.80 per share in the prior year quarter Analysts polled by Thomson Reuters expected the company to report a loss of $0.78 per share for the second-quarter. Analysts' estimates typically exclude special items.

Funds from operations dropped to C$488 million or C$0.32 per share from C$3.005 billion or C$1.92 per share last year.

The company made significant progress in reducing operating and capital costs in the second quarter of 2020 and remains on track to achieve its C$1 billion operating cost reduction target and C$1.9 billion capital cost reduction target by the end of 2020.

Total upstream production decreased to 655,500 barrels of oil equivalent per day (boe/d) during the second quarter of 2020, from 803,900 boe/d in the prior year quarter.

The company said its board has approved a quarterly dividend of C$0.21 per share on its common shares, payable September 25, 2020 to shareholders of record at the close of business on September 4, 2020.