Suncor doubles its profits thanks to high oil prices

Suncor doubles profits on high oil price

UPGRADE DAY

Suncor has more than doubled its profits over the past three months to $2.57 billion in Q3. The Alberta giant thus exceeded analysts' expectations and benefited from the rise in the price of oil and refined products.   

In the first nine months of its fiscal year, Suncor made adjusted earnings of more than $1 billion per month, to $9.134 billion. 

The Alberta producer, which derives most of its oil from the tar sands, has been able to capitalize on high world crude prices. 

If they aren't what they were earlier in 2022, at a 14-year high, prices were still 30% higher in Q3 2022 than in Q3 2021. 

Supply of barrels of oil crude on the market is currently limited by Russian sanctions (Russia is the world's third largest producer behind the United States and Saudi Arabia) and OPEC+ production cuts. 

Analysts were expecting Q3 earnings of $1.83 a share when they were up at $1.88 instead.

Production also rose to 698,000 barrels per day at 724,100. 

< p>In the end, Suncor reports net losses of 609 million in the 3rd quarter due to the impairment of $ 3.4 billion of its assets in the oil sands project Fort Hills, Alberta. 

The company last week bought out Teck Resources' stake in the project for $1 billion, increasing its stake from 54.1% to 75.4%. 

Suncor recorded the $3.4 billion impairment charge before increasing its stake in Fort Hills.