- 28 апреля 2016, 16:51
- Zacks Investment Research
Suncor Energy Inc. SU reported first-quarter 2016 operating loss per share of 33 cents, wider than the Zacks Consensus Estimate of loss of 17 cents. The company had reported a profit of 12 cents per share in the year-ago comparable quarter.
Quarterly revenues of C$5.6 billion also decreased significantly from C$7.4 billion in the year-ago quarter.
A weak crude pricing environment along with lower refinery utilization led to the disappointing results.
Suncor incurred quarterly operating loss of C$500 million. The company had earned C$175 million in the year-ago quarter. Moreover, cash flow from operations decreased to C$682 million from C$1.5 billion in the first quarter of 2015.
Total upstream production in the reported quarter averaged 691,400 barrels of oil equivalent per day (BOE/d), 14.8% higher than the prior-year level of 602,400 BOE/d. Increased output from Oil Sands operations drove volume growth.
Oil Sands operations volume was 453,000 barrels per day (Bbl/d), higher than 440,400 Bbl/d in the year-ago quarter.
Production from Syncrude operations was 112,800 Bbl/d in the quarter, significantly higher than 35,200 Bbl/d in the year-ago quarter.
Suncor’s Exploration and Production segment (consisting of International and Offshore and Natural Gas segments) produced 125,600 BOE/d. The segment had produced 126,800 BOE/d in the prior-year quarter.
The Refining and Marketing segment averaged 420,900 Bbl/d of refinery crude processed, down from 437,100 Bbl/d in the year-ago quarter. Refinery utilization came in at 91%, below the year-ago quarter level of 95%.
The company’s refined product sales of 489,500 Bbl/d decreased from the prior-year quarter figure of 519,700 Bbl/d.
Balance Sheet & Capital Expenditure
As of Mar 31, 2016, Suncor had cash and cash equivalents of C$3.1 billion and total long-term debt (including current portions) of C$17.9 billion. The total debt-to-capitalization ratio was approximately 29.4%. Moreover, the company incurred capital expenditure of C$2 billion in the quarter.
Suncor maintained its 2016 capital spending projection at C$6.0–C$6.5 billion.
The company affirms its projected full-year total production at 525,000–565,000 BOE/d. Suncor’s newly projected 2016 Oil Sands sales is in the band of 390,000–435,000 Bbl/d.
Refinery throughput was reiterated in the range of 420,000–440,000 Bbl/d. Refined products sales are anticipated in the 510,000–550,000 Bbl/d band.
Suncor Energy has declared its intention to buy additional interest in Syncrude Canada oil sands mine from Murphy Oil Corporation MUR for a consideration of $937 million. With the closure of the deal, Suncor Energy will have 53.7% interest in the mine that is higher than the current 48.7% interest.
Suncor currently carries a Zacks Rank #2 (Buy), implying that it will outperform the broader U.S. equity market over the next one to three months.
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