Suncor Energy Inc. swings to $1.5B profit on soaring crude prices

A pedestrian is reflected in a Suncor Energy sign in Calgary, Monday, Feb. 1, 2010. THE CANADIAN PRESS/Jeff McIntosh

CALGARY — Suncor Energy Inc. says it earned $1.53 billion in the fourth quarter and achieved record adjusted funds from operations against the backdrop of soaring oil prices.

The Calgary-based oil producer and refiner reported after markets closed on Wednesday that it earned $1.07 per common share for the period ended Dec. 31, compared with a net loss of $168 million or 11 cents per common share in the same period of 2020.

Revenues surged 68 per cent to $11.1 billion from $6.6 billion in the fourth quarter of 2020.

Analysts expected Suncor to earn $1.35 billion in the quarter, or 94 cents per common share on $10.8 billion of revenues, according to financial database company Refinitiv.

Suncor says the increases were primarily related to higher crude oil and refined product sales reflecting the improved business environment. The fourth quarter of 2020 had been negatively impacted by the significant decline in transportation fuel demand related to the COVID-19 pandemic.

Suncor says it generated a record $3.1 billion, or $2.17 per common share, in adjusted funds from operations during the fourth quarter.

Suncor's total upstream production was 743,300 barrels of oil equivalent per day (boe/d) in the fourth quarter, compared with 769,200 boe/d in the prior year quarter. It says the decrease was due to in part to the absence of production from the Golden Eagle Area development, which was sold in the fourth quarter of 2021.

This report by The Canadian Press was first published Feb. 2, 2022.