Suncor announced a 12.5% increase in its dividend for the fourth quarter of 2017, which is a strong signal to its investors. The company achieved operating profits of CAD $ 1,310 million, up 106% from the same quarter of last year. This is due in part to increased production due to new production sites in New Fort Hills, Alberta and Hebron on the coast of Newfoundland and Labrador.
Suncor’s (TSE: SU) total production decreased during the quarter to 736,400 barrels of oil equivalent per day (boe / d) compared to 738,500 boe / d at the prior year level. However, farm income rose sharply thanks to the rise in crude oil, as well as the decline in its operating costs. Suncor earned better profit margins from its refineries, with an average utilization of 94% compared to 93% at the same time.
Suncor’s recent involvement in the random testing of its employees did not work in favor of the title. This news partly contributes to the decline in value, despite Suncor’s strong performance in both cost structure and higher refined oil sales. In addition, the commissioning and production at the Herbon site ahead of schedule is excellent news.
The Canadian Press (February 7, 2018). Suncor hikes dividend as funds from operations hit $3 billion record. Taken from Financial post : http://business.financialpost.com/pmn/commodities-business-pmn/energy-business-pmn/suncor-hikes-dividend-as-fourth-quarter-funds-from-operations-hit-3b-record
Zacks Equity Research (February 8, 2018). Suncor (SU) Q4 Earnings Surpass Estimates, Revenues Up Y/Y. Taken from Nasdaq : https://www.nasdaq.com/article/suncor-su-q4-earnings-surpass-estimates-revenues-up-yy-cm918562