Suncor Energy Inc. posted an over fourfold jump in its second-quarter profit on Aug. 4, as the oil producer benefited from a rally in commodity prices, and floated plans to divest assets and slim down its portfolio.
Sanctions against major energy producer Russia have worsened supply issues, sending global crude prices up nearly 48% in the first half of the year as energy companies are yet to boost production to meet soaring fuel demand.
Suncor, Canada’s third-largest oil producer, said it has signed a deal to divest its Norway assets for about $410 million, and has also begun a sale process for its entire U.K. business after receiving interest.
It did not disclose details of the Norwegian or U.K. asset buyers.
The Calgary, Alberta-based firm had reached an agreement with activist investor Elliott Investment Management last month. As part of the agreement, it appointed three new independent directors and said it would review its retail gas station business.
Elliott had criticized Suncor’s operational and safety record. Last month, Mark Little stepped down as CEO, a day after the death of a Suncor worker, the thirteenth site fatality since 2014.
RELATED:
‘No Easy Fix’: Suncor Energy Faces Overhaul after CEO Exit
Suncor on Aug. 4 raised its full-year capex forecast to $4.9 billion-$5.2 billion from $4.7 billion previously, citing inflationary pressures and increased spending on safety improvement.
It has lowered its 2022 production forecast to 740,000-760,000 bbl/d from 750,000-790,000.
The company expects to complete sale of its Norwegian assets in the fourth quarter. The assets include offshore Oda, Fenja, and Beta fields, in which Suncor holds varying stakes of 17.5% to 30%, as per its website.
Total upstream production in the reported quarter stood at 720,200 boe/d, compared with 699,700 boe/d a year earlier.
The company’s refinery crude throughput rose nearly 20% to 389,300 bbl/d.
Net earnings rose more than fourfold to CA$3.996 billion (US$3.11 billion), or CA$2.84 per share.
(US$1 = 1.2867 Canadian dollars)
Recommended Reading
TotalEnergies Rolling Out Copilot for Microsoft 365
2024-02-27 - TotalEnergies’ rollout is part of the company’s digital transformation and is intended to help employees solve problems more efficiently.
Defeating the ‘Four Horsemen’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production—and keep the cash flowing.
Oil States’ ACTIVEHub for Digitized Assets
2024-03-14 - Oil States Energy Services’ new ACTIVEHub system and ACTIVELatch help operators remotely monitor and automate frac locations for a more efficient and safer wellsite.
AI Advancing Underwater, Reducing Human Risk
2024-03-25 - Experts at CERAWeek by S&P Global detail the changes AI has made in the subsea robotics space while reducing the amount of human effort and safety hazards offshore.
Tech Trends: Safety, Speed, Savings: Automation is Transforming Drilling
2024-03-26 - Drilling is getting smarter through automation, delivering efficiency, consistency and reliability.