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Suncor (SU) Reports Earnings in Q3, Sales Miss Estimates
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Suncor Energy Inc. (SU - Free Report) reported third-quarter 2016 operating earnings per share of 16 U.S cents. The Zacks Consensus Estimate was of a loss of 8 U.S. cents. The company had posted earnings of 21 U.S. cents per share in the year-ago comparable quarter. Strong upstream production, lower operating costs and record crude throughput led to the outperformance in the quarter under review.
Moreover, quarterly revenues of U.S$5.5 billion decreased from U.S$5.7 billion in the year-ago quarter. Also, the top line missed the Zacks Consensus Estimate of U.S$6.5 billion.
Suncor recorded quarterly operating earnings of C$346 million. The company had earned C$410 million in the year-ago quarter. Moreover, cash flow from operations increased to C$2,025 million from C$1,882 million in the third quarter of 2015.
Production
Total upstream production in the reported quarter was 728,100 barrels of oil equivalent per day (BOE/d), up 28.6% from the prior-year level of 566,100 BOE/d.
Oil Sands operations volume was 433,700 barrels per day (Bbl/d) as against 430,300 Bbl/d in the year-ago quarter.
Production from Syncrude operations was 183,800 Bbl/d in the quarter compared with 28,100 Bbl/d in the year-ago quarter.
Suncor’s Exploration and Production segment (consisting of International and Offshore and Natural Gas segments) produced 110,600 BOE/d. The segment had produced 107,700 BOE/d in the prior-year quarter.
Refinery utilization came in at 101% as against the year-ago quarter level of 96%.
Product Sales
The company’s refined product sales of 548,700 Bbl/d increased from the prior-year quarter level of 546,400 Bbl/d.
Balance Sheet & Capital Expenditure
As of Sep 30, 2016, Suncor had cash and cash equivalents of C$3.1 billion and total long-term debt (including current portions) of C$15.9 billion. The total debt-to-capitalization ratio was approximately 26.5%. The company incurred capital expenditure of C$1.7 billion in the quarter.
Guidance
Suncor reduced its 2016 capital spending projection to C$5.8–C$6.0 billion from C$6.0–C$6.5.
The company raised its guidance for the total production in 2016 to 610,000–625,000 BOE/d from the prior projection of 585,000–620,000 BOE/d. Suncor projected Oil Sands sales in the band of 370,000–390,000 Bbl/d in 2016.
Refinery throughput is expected in the range of 425,000–435,000Bbl/d. Refined products sales are anticipated in the 520,000-530,000Bbl/d band.
Zacks Rank
Suncor currently carries a Zacks Rank #3 (Buy), implying that it will perform in line with the broader U.S. equity market over the next one to three months.
In the last four quarters, Enviva Partners posted an average positive earnings surprise of 0.19%.
Ultra Petroleum, on the other hand, posted an average positive earnings surprise of 65.91% in the last four quarters.
In the last four quarters, W&T Offshore posted an average positive earnings surprise of 23.63%.
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Suncor (SU) Reports Earnings in Q3, Sales Miss Estimates
Suncor Energy Inc. (SU - Free Report) reported third-quarter 2016 operating earnings per share of 16 U.S cents. The Zacks Consensus Estimate was of a loss of 8 U.S. cents. The company had posted earnings of 21 U.S. cents per share in the year-ago comparable quarter. Strong upstream production, lower operating costs and record crude throughput led to the outperformance in the quarter under review.
Moreover, quarterly revenues of U.S$5.5 billion decreased from U.S$5.7 billion in the year-ago quarter. Also, the top line missed the Zacks Consensus Estimate of U.S$6.5 billion.
Suncor recorded quarterly operating earnings of C$346 million. The company had earned C$410 million in the year-ago quarter. Moreover, cash flow from operations increased to C$2,025 million from C$1,882 million in the third quarter of 2015.
Production
Total upstream production in the reported quarter was 728,100 barrels of oil equivalent per day (BOE/d), up 28.6% from the prior-year level of 566,100 BOE/d.
Oil Sands operations volume was 433,700 barrels per day (Bbl/d) as against 430,300 Bbl/d in the year-ago quarter.
SUNCOR ENERGY Price, Consensus and EPS Surprise
SUNCOR ENERGY Price, Consensus and EPS Surprise | SUNCOR ENERGY Quote
Production from Syncrude operations was 183,800 Bbl/d in the quarter compared with 28,100 Bbl/d in the year-ago quarter.
Suncor’s Exploration and Production segment (consisting of International and Offshore and Natural Gas segments) produced 110,600 BOE/d. The segment had produced 107,700 BOE/d in the prior-year quarter.
Refinery utilization came in at 101% as against the year-ago quarter level of 96%.
Product Sales
The company’s refined product sales of 548,700 Bbl/d increased from the prior-year quarter level of 546,400 Bbl/d.
Balance Sheet & Capital Expenditure
As of Sep 30, 2016, Suncor had cash and cash equivalents of C$3.1 billion and total long-term debt (including current portions) of C$15.9 billion. The total debt-to-capitalization ratio was approximately 26.5%. The company incurred capital expenditure of C$1.7 billion in the quarter.
Guidance
Suncor reduced its 2016 capital spending projection to C$5.8–C$6.0 billion from C$6.0–C$6.5.
The company raised its guidance for the total production in 2016 to 610,000–625,000 BOE/d from the prior projection of 585,000–620,000 BOE/d. Suncor projected Oil Sands sales in the band of 370,000–390,000 Bbl/d in 2016.
Refinery throughput is expected in the range of 425,000–435,000Bbl/d. Refined products sales are anticipated in the 520,000-530,000Bbl/d band.
Zacks Rank
Suncor currently carries a Zacks Rank #3 (Buy), implying that it will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include Enviva Partners, LP (EVA - Free Report) , Ultra Petroleum Corp. and W&T Offshore Inc. (WTI - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Enviva Partners posted an average positive earnings surprise of 0.19%.
Ultra Petroleum, on the other hand, posted an average positive earnings surprise of 65.91% in the last four quarters.
In the last four quarters, W&T Offshore posted an average positive earnings surprise of 23.63%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>