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Suncor (SU) Beats on Q1 Earnings, Revenues Miss Estimates
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Canadian energy giant Suncor Energy Inc. (SU - Free Report) reported first-quarter 2017 operating earnings per share of 37 cents U.S., which beat the Zacks Consensus Estimate of 23 cents. The company posted a loss of 24 cents per share U.S. in the year-ago comparable quarter. Strong upstream production, higher crude prices and lower operating costs led to the outperformance.
Moreover, quarterly revenues of $5.9 billion increased from $4.1 billion in the year-ago quarter, again in U.S. dollars. However, the top line underperformed the Zacks Consensus Estimate of $6.2 billion.
Suncor recorded quarterly operating earnings of C$812 million. The company had incurred an operating loss of C$500 million in the year-ago quarter. The increase was driven by higher crude price realizations and strong upstream production. Moreover, cash flow from operations increased to C$2,024 million from C$682 million in the first quarter of 2016.
Suncor Energy Inc. Price, Consensus and EPS Surprise
Total upstream production in the reported quarter was 725,100 barrels of oil equivalent per day (BOE/d), up 4.9% from the prior-year level of 691,400 BOE/d.
Oil Sands operations volume was 448,500 barrels per day (Bbl/d) as against 453,000 Bbl/d in the year-ago quarter.
Production from Syncrude operations was 142,100 Bbl/d in the quarter compared with 112,800 Bbl/d in the year-ago quarter. Acquisition of additional ownership interests led to the increase.
Suncor’s Exploration and Production segment (consisting of International and Offshore and Natural Gas segments) produced 134,500 BOE/d. The segment had produced 125,600 BOE/d in the prior-year quarter.
Refinery utilization came in at 93%, compared with 91% in the year-ago quarter.
Product Sales
The company’s refined product sales of 429,900 Bbl/d increased from the prior-year quarter level of 420,900 Bbl/d.
Balance Sheet & Capital Expenditure
As of Mar 31, 2017, Suncor had cash and cash equivalents of C$3.5 billion and total long-term debt (including current portions) of C$16 billion. The total debt-to-capitalization ratio was approximately 26%. The company incurred capital expenditure of C$1.39 billion in the quarter.
Dividend and Share Repurchase
Suncor returned C$534 million to shareholders through dividends in the first quarter of 2017.
The company approved a quarterly dividend of 32 cents per share on its common shares, payable Jun 26 to shareholders of record at the close of business on Jun 5.
Suncor announced plans to repurchase up to C$2B of the company's shares over the next 12 months through a normal course issuer bid, together with the early repayment of a $1.25B bond.
Guidance
The full-year outlook range for E&P production has been updated from 95,000–105,000 Boe/d to 110,000–120,000 Boe/d due to improved asset performance.
The full-year outlook range for Syncrude production has been updated from 150,000–165,000 Bbls/d to 135,000–150,000 Bbls/d. Further the full-year outlook range for Syncrude cash operating costs has been updated from $32.00–$35.00/bbl to $36.00–$39.00/bbl because of the Syncrude fire incident.
Zacks Rank & Key Picks
Suncor currently carries a Zacks Rank #4 (Sell)
Better-ranked players in the broader industry include Penn Virginia Corporation , Bellatrix Exploration Ltd and Cenovus Energy Inc. (CVE - Free Report) . All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Penn Virginia posted a positive average surprise of 36.67% in the last four quarters.
Bellatrix posted a positive average surprise of 58.54% in the last four quarters.
Cenovus posted a positive average surprise of 74.89% in the last four quarters.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
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Suncor (SU) Beats on Q1 Earnings, Revenues Miss Estimates
Canadian energy giant Suncor Energy Inc. (SU - Free Report) reported first-quarter 2017 operating earnings per share of 37 cents U.S., which beat the Zacks Consensus Estimate of 23 cents. The company posted a loss of 24 cents per share U.S. in the year-ago comparable quarter. Strong upstream production, higher crude prices and lower operating costs led to the outperformance.
Moreover, quarterly revenues of $5.9 billion increased from $4.1 billion in the year-ago quarter, again in U.S. dollars. However, the top line underperformed the Zacks Consensus Estimate of $6.2 billion.
Suncor recorded quarterly operating earnings of C$812 million. The company had incurred an operating loss of C$500 million in the year-ago quarter. The increase was driven by higher crude price realizations and strong upstream production. Moreover, cash flow from operations increased to C$2,024 million from C$682 million in the first quarter of 2016.
Suncor Energy Inc. Price, Consensus and EPS Surprise
Suncor Energy Inc. Price, Consensus and EPS Surprise | Suncor Energy Inc. Quote
Production
Total upstream production in the reported quarter was 725,100 barrels of oil equivalent per day (BOE/d), up 4.9% from the prior-year level of 691,400 BOE/d.
Oil Sands operations volume was 448,500 barrels per day (Bbl/d) as against 453,000 Bbl/d in the year-ago quarter.
Production from Syncrude operations was 142,100 Bbl/d in the quarter compared with 112,800 Bbl/d in the year-ago quarter. Acquisition of additional ownership interests led to the increase.
Suncor’s Exploration and Production segment (consisting of International and Offshore and Natural Gas segments) produced 134,500 BOE/d. The segment had produced 125,600 BOE/d in the prior-year quarter.
Refinery utilization came in at 93%, compared with 91% in the year-ago quarter.
Product Sales
The company’s refined product sales of 429,900 Bbl/d increased from the prior-year quarter level of 420,900 Bbl/d.
Balance Sheet & Capital Expenditure
As of Mar 31, 2017, Suncor had cash and cash equivalents of C$3.5 billion and total long-term debt (including current portions) of C$16 billion. The total debt-to-capitalization ratio was approximately 26%. The company incurred capital expenditure of C$1.39 billion in the quarter.
Dividend and Share Repurchase
Suncor returned C$534 million to shareholders through dividends in the first quarter of 2017.
The company approved a quarterly dividend of 32 cents per share on its common shares, payable Jun 26 to shareholders of record at the close of business on Jun 5.
Suncor announced plans to repurchase up to C$2B of the company's shares over the next 12 months through a normal course issuer bid, together with the early repayment of a $1.25B bond.
Guidance
The full-year outlook range for E&P production has been updated from 95,000–105,000 Boe/d to 110,000–120,000 Boe/d due to improved asset performance.
The full-year outlook range for Syncrude production has been updated from 150,000–165,000 Bbls/d to 135,000–150,000 Bbls/d. Further the full-year outlook range for Syncrude cash operating costs has been updated from $32.00–$35.00/bbl to $36.00–$39.00/bbl because of the Syncrude fire incident.
Zacks Rank & Key Picks
Suncor currently carries a Zacks Rank #4 (Sell)
Better-ranked players in the broader industry include Penn Virginia Corporation , Bellatrix Exploration Ltd and Cenovus Energy Inc. (CVE - Free Report) . All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Penn Virginia posted a positive average surprise of 36.67% in the last four quarters.
Bellatrix posted a positive average surprise of 58.54% in the last four quarters.
Cenovus posted a positive average surprise of 74.89% in the last four quarters.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>