Suncor(US:SU)2024-11-13 02:13Financial Performance - Generated $3.8 billion in adjusted funds from operations and $2.2 billion in free funds flow in Q3 2024[6] - Net earnings increased to $2.020 billion ($1.59 per common share) in Q3 2024, up from $1.544 billion ($1.19 per common share) in Q3 2023[6] - Adjusted operating earnings were $1.875 billion ($1.48 per common share) in Q3 2024, compared to $1.980 billion ($1.52 per common share) in Q3 2023[6] - Total cash flow provided by operating activities was $4.261 billion in Q3 2024, compared to $4.184 billion in Q3 2023, a 1.8% increase[42] - Operating revenues for Q3 2024 were $7,245 million, up from $6,803 million in Q3 2023, representing an increase of 6.5%[49] - Adjusted operating earnings for Q3 2024 were $1,786 million, compared to $1,670 million in Q3 2023, reflecting an increase of 6.9%[49] - Free funds flow for Q3 2024 was $2,198 million, compared to $1,754 million in Q3 2023, an increase of 25.3%[49] - Total revenue for the three months ended September 30, 2024, was $13,905 million, an increase from $13,687 million in the same period of 2023, representing a growth of 1.6%[199] Shareholder Returns - Returned $1.5 billion to shareholders, including $800 million in share repurchases and $700 million in dividends[6] - Quarterly dividend per share increased by approximately 5% to $0.57 per share subsequent to Q3 2024[12] - Suncor returned approximately $1.5 billion to shareholders in Q3 2024 through $790 million in share repurchases and $690 million in dividends[23] - The company declared cash dividends of $0.55 per share in Q3 2024, up from $0.52 per share in Q3 2023[171] Production and Operations - Achieved highest ever refining throughput of 488,000 barrels per day (bbls/d) with 105% overall utilization[6] - Upstream production reached 829,000 bbls/d, with 99% upgrader utilization, marking the best third quarter ever[6] - Total upstream production increased to 828,600 bbls/d in Q3 2024, compared to 690,500 bbls/d in Q3 2023[10] - Record upstream production of 776,000 bbls/d in Q3 2024, compared to 646,100 bbls/d in Q3 2023, marking a 20.1% increase[34] - Refinery utilization reached a record 105% in Q3 2024, compared to 99% in Q3 2023, indicating improved operational efficiency[34] - Total Oil Sands bitumen production increased to 909,600 bbls/d in Q3 2024, up from 787,000 bbls/d in the prior year quarter[10] - Non-upgraded bitumen production rose to 262,200 bbls/d in Q3 2024, compared to 176,800 bbls/d in Q3 2023, marking a significant increase of 48.3%[53] - E&P production increased to 52,600 bbls/d in Q3 2024 from 44,400 bbls/d in Q3 2023, attributed to production from Terra Nova and increased output at Hebron[68] Debt and Financial Position - Achieved net debt target of $8 billion, enabling 100% return of excess funds to shareholders[12] - Debt reduction of over $1.4 billion achieved in Q3 2024, including $331 million repaid during the quarter and $1.1 billion in a subsequent debt tender offer[23] - Total debt decreased to $10.973 billion as of September 30, 2024, primarily due to long-term debt repayment and reduced short-term indebtedness[108] - Net debt as of September 30, 2024, was $7.968 billion, down from $9.054 billion at June 30, 2024, reflecting an increase in cash and cash equivalents[108] - The company reported a total income tax expense of $2,051 million for the nine months ended September 30, 2024, compared to $2,068 million in 2023, reflecting a slight decrease[140] Capital Expenditures - Total capital and exploration expenditures were $1.467 billion in Q3 2024, slightly down from $1.512 billion in Q3 2023[29] - Capital expenditures in Q3 2024 totaled $1.467 billion, a decrease from $1.512 billion in Q3 2023, driven by reduced expenditures at Oil Sands Base[93] - Oil Sands Base capital expenditures were $364 million in Q3 2024, focused on economic investments for facility upgrades and maintenance projects[94] - Exploration and Production capital expenditures were $268 million in Q3 2024, primarily for the West White Rose Project and SeaRose Asset Life Extension Project[95] - Refining and Marketing capital expenditures reached $294 million in Q3 2024, mainly for asset sustainment and maintenance activities[97] Market Conditions - The average WTI crude oil price for Q3 2024 was $75.15/bbl, down from $82.20/bbl in Q3 2023, a decrease of 8.5%[47] - E&P Canada price realizations decreased to $109.24 per barrel in Q3 2024 from $117.21 in Q3 2023, reflecting lower benchmark prices for Brent crude[70] - Price realization per barrel for Upgraded – Net SCO and Diesel was $100.57 in Q3 2024, compared to $107.19 in Q3 2023, reflecting a decrease of 6.1%[158] Other Financial Metrics - The effective tax rate on net earnings for Q3 2024 was 25.0%, a decrease from 27.6% in Q3 2023, attributed to lower impacts from foreign jurisdictions and non-taxable foreign exchange gains[90] - The company reported a decrease in royalties to $1,017 million in Q3 2024 from $1,262 million in Q3 2023[171] - Operating expenses decreased to $10,368 million in Q3 2024 from $10,502 million in Q3 2023[171] - The company reported a total of $41,224 million in gross revenues for the nine months ended September 30, 2024, up from $38,617 million in the same period of 2023, an increase of 6.6%[197]