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Suncor Energy (SU) Posts Narrower-Than-Expected Loss for Q4
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Suncor Energy (SU - Free Report) recently reported fourth-quarter 2020 operating loss per share of 7 cents, narrower than the Zacks Consensus Estimate of a loss of 11 cents per share. This improvement is led by decreased operating, selling and general costs as a result of reduced production and the company’s continuous cost-minimizing efforts.
However, the year-ago bottom line was a profit of 39 cents per share. This year-over-year downside is due to the ramped-down Fort Hills and Oil Sands production along with soft refined product sales.
Quarterly operating revenues of $5.06 billion fell short of the Zacks Consensus Estimate of $5.68 billion. Moreover, the top line dropped 30.4% from $7.27 billion in the year-ago quarter.
Upstream
Total upstream production in the reported quarter was 769,200 barrels of oil equivalent per day (Boe/d), down 1.15% from the prior-year level of 778,200 Boe/d. This fall in output was due to a decline in the Fort Hills and Oil Sands production plus planned maintenance activities at Oil Sands operations. Consequently, this upstream unit recorded an operating loss of C$379 million, wider than the loss of C$162 million in the prior-year quarter.
Notably, Fort Hills production came in at 62,400 barrels per day (BPD) in the quarter, lower than 87,900 BPD registered in the year-ago period.
Output from Syncrude operations scaled up to 207,400 Bbl/d from 156,300 Bbl/d a year earlier.
Oil Sands operations volume was 413,900 Bbl/d compared with 419,900 Bbl/d in the year-earlier quarter. Operating costs per barrel decreased to C$26.50 in the quarter under review from C$28.55 in the corresponding period of 2019. Meanwhile, upgrader utilization increased to 95% from 83% in the comparable quarter of last year.
However, Suncor Energy’s Exploration and Production segment (consisting of International, Offshore and Natural Gas segments) produced 97,700 Boe/d compared with 115,900 Boe/d in the prior-year quarter. Results were impacted by Terra Nova quayside preservation and natural declines in the United Kingdom.
Downstream
Operating earnings from the downstream unit plunged to C$268 million from the year-ago figure of C$558 million due to dented margins, lower crude throughput and weak refined product sales. Suncor Energy recorded soft refined product sales in the quarter under consideration, which fell to 508,800 Bbl/d from the prior-year level of 534,600 Bbl/d as a result of poor transportation fuel demand due to the novel coronavirus outbreak.
Crude throughput came in at 438,000 Bbl/d in the fourth quarter compared with 447,500 Bbl/d in the year-ago period. Also, refinery utilization was 95%.
Suncor Energy Inc. Price, Consensus and EPS Surprise
Total expenses in the reported quarter plummeted to C$7.03 billion from C$12.7 billion in the year-earlier period. This improvement is mainly led by lower costs related to the purchases of crude oil and products as well as a fall in operating, selling and general costs.
Financials
Importantly, cash flow from operating activities summed C$814 million in the fourth quarter, down from the prior-year figure of C$2.3 billion. The company incurred capital expenditure worth C$941 million in the quarter under discussion.
As of Dec 31, 2020, Suncor Energy had cash and cash equivalents worth C$1.89 billion and a total long-term debt of C$13.8 billion. Its total debt to total capital was 27.9%.
During the quarter under review, the company distributed $320 million as dividends.
Guidance
For the full year, this Alberta-based integrated player will continue to focus on strengthening its financial position. The company plans to maintain a disciplined capital approach and estimates to repay around C$1-C$1.5 billion debt in 2021, thereby indicating its ability to generate cash flow.
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Suncor Energy (SU) Posts Narrower-Than-Expected Loss for Q4
Suncor Energy (SU - Free Report) recently reported fourth-quarter 2020 operating loss per share of 7 cents, narrower than the Zacks Consensus Estimate of a loss of 11 cents per share. This improvement is led by decreased operating, selling and general costs as a result of reduced production and the company’s continuous cost-minimizing efforts.
However, the year-ago bottom line was a profit of 39 cents per share. This year-over-year downside is due to the ramped-down Fort Hills and Oil Sands production along with soft refined product sales.
Quarterly operating revenues of $5.06 billion fell short of the Zacks Consensus Estimate of $5.68 billion. Moreover, the top line dropped 30.4% from $7.27 billion in the year-ago quarter.
Upstream
Total upstream production in the reported quarter was 769,200 barrels of oil equivalent per day (Boe/d), down 1.15% from the prior-year level of 778,200 Boe/d. This fall in output was due to a decline in the Fort Hills and Oil Sands production plus planned maintenance activities at Oil Sands operations. Consequently, this upstream unit recorded an operating loss of C$379 million, wider than the loss of C$162 million in the prior-year quarter.
Notably, Fort Hills production came in at 62,400 barrels per day (BPD) in the quarter, lower than 87,900 BPD registered in the year-ago period.
Output from Syncrude operations scaled up to 207,400 Bbl/d from 156,300 Bbl/d a year earlier.
Oil Sands operations volume was 413,900 Bbl/d compared with 419,900 Bbl/d in the year-earlier quarter. Operating costs per barrel decreased to C$26.50 in the quarter under review from C$28.55 in the corresponding period of 2019. Meanwhile, upgrader utilization increased to 95% from 83% in the comparable quarter of last year.
However, Suncor Energy’s Exploration and Production segment (consisting of International, Offshore and Natural Gas segments) produced 97,700 Boe/d compared with 115,900 Boe/d in the prior-year quarter. Results were impacted by Terra Nova quayside preservation and natural declines in the United Kingdom.
Downstream
Operating earnings from the downstream unit plunged to C$268 million from the year-ago figure of C$558 million due to dented margins, lower crude throughput and weak refined product sales. Suncor Energy recorded soft refined product sales in the quarter under consideration, which fell to 508,800 Bbl/d from the prior-year level of 534,600 Bbl/d as a result of poor transportation fuel demand due to the novel coronavirus outbreak.
Crude throughput came in at 438,000 Bbl/d in the fourth quarter compared with 447,500 Bbl/d in the year-ago period. Also, refinery utilization was 95%.
Suncor Energy Inc. Price, Consensus and EPS Surprise
Suncor Energy Inc. price-consensus-eps-surprise-chart | Suncor Energy Inc. Quote
Expenses
Total expenses in the reported quarter plummeted to C$7.03 billion from C$12.7 billion in the year-earlier period. This improvement is mainly led by lower costs related to the purchases of crude oil and products as well as a fall in operating, selling and general costs.
Financials
Importantly, cash flow from operating activities summed C$814 million in the fourth quarter, down from the prior-year figure of C$2.3 billion. The company incurred capital expenditure worth C$941 million in the quarter under discussion.
As of Dec 31, 2020, Suncor Energy had cash and cash equivalents worth C$1.89 billion and a total long-term debt of C$13.8 billion. Its total debt to total capital was 27.9%.
During the quarter under review, the company distributed $320 million as dividends.
Guidance
For the full year, this Alberta-based integrated player will continue to focus on strengthening its financial position. The company plans to maintain a disciplined capital approach and estimates to repay around C$1-C$1.5 billion debt in 2021, thereby indicating its ability to generate cash flow.
Zacks Rank & Key Picks
Suncor Energy currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are DCP Midstream Partners, LP , Plains Group Holdings, L.P. (PAGP - Free Report) and Matador Resources Company (MTDR - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>