Back to top

Image: Bigstock

Suncor (SU) to Cut 1500 Jobs to Improve Financial Performance

Read MoreHide Full Article

Suncor Energy Inc. (SU - Free Report) ), a Calgary-based integrated energy company, announced that it will cut 1500 jobs by the end of the year in order to lower expenses and improve its financial performance, per media reports. This is in addition to the company's previously declared intention to reduce the size of its contractor workforce by 20% in an effort to improve safety and performance at its oilsands sites.

According to Suncor's annual information form, the layoff will affect nearly 9% of the 16,558 employees (excluding contractors) that the company had at the end of 2022.

SU has been under pressure from shareholders to improve its financial performance and share price that have underperformed its competitors. The company has also been under scrutiny for a recent episode of operational problems and worker safety hazards, including a number of fatalities.

Per media reports, a Suncor spokeswoman stated that such changes were necessary to strengthen the future of the company. She added that the job cuts will take place across the organization, affecting both contractors and employees. However, no information was provided on whether the layoffs would take place at the company’s head office or in the field.

Zacks Rank & Key Picks

Suncor currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks for investors interested in the energy sector are Sunoco LP (SUN - Free Report) , Murphy USA Inc. (MUSA - Free Report) and RGC Resources Inc. (RGCO - Free Report) . While both Sunoco and Murphy USA sport a Zacks Rank #1 (Strong Buy), RGC Resources carries a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model with sustainable and predictable cash flows. For this year, SUN has witnessed an upward earnings estimate revision in the past seven days.

Murphy USA, a leading retailer of gasoline, operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. MUSA, with more than 1,700 stores, has witnessed an upward earnings estimate revision for 2023 and 2024, in the past 30 days.

RGC Resources is a holding company that offers energy and associated products and services through its operational subsidiaries —Roanoke Gas Company and RGC Midstream, LLC. RGCO has thousands of customers through its natural gas distribution companies that serve the Roanoke Valley and Bluefield, Virginia and West Virginia areas. For this year, the company has witnessed an upward earnings estimate revision in the past 30 days.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Sunoco LP (SUN) - free report >>

Suncor Energy Inc. (SU) - free report >>

Murphy USA Inc. (MUSA) - free report >>

RGC Resources Inc. (RGCO) - free report >>

Published in