Suncor reports first-quarter profit beat on refining strength
Canadian oil producer Suncor Energy reported first-quarter profit above analysts' expectations on Tuesday, as it benefited from greater refinery production and sales volumes.
The upbeat results come amid a broader rebound in North American refining margins. Last week, peer Imperial Oil posted record first-quarter earnings, driven primarily by stronger margins in its refining and fuel sales business.
Suncor said its refined product sales rose to 604 900 barrels per day in the quarter compared to 581 000 bpd last year. The jump was primarily driven by higher refinery throughput and the benefit of the company's extensive sales and retail network.
Refinery utilization also jumped to 104% from 98% a year ago.
Calgary, Alberta-based Suncor's upstream quarterly production rose to 853 200 bpd, but sales volumes dropped due to a build-up in inventory.
Talking about the earnings, CEO Rich Kruger said Suncor's "integrated business model, and continually improving cost structure, enables the company to deliver free funds flow and shareholder value despite the current volatile business environment."
About 80% of Canada's crude and 40% of its natural gas production are sold in the US. This interdependence faced uncertainty when US President Donald Trump announced tariffs on Canada. Although these duties were briefly implemented in February, most were rolled back within days.
In February, CEO Rich Kruger said the integrated nature of the company's assets gives the company a "natural hedge" against tariffs.
The company reported an adjusted profit of C$1.31 ($0.9509) per share for the quarter, compared with analysts' average estimate of C$1.21 per share, according to data compiled by LSEG.
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