Suncor(SU)2025-02-27 01:42Financial Performance - Suncor generated adjusted funds from operations of $13.846 billion in 2024, or $10.87 per common share, compared to $13.325 billion, or $10.19 per common share, in the prior year [75]. - Net earnings for 2024 were $6.016 billion, or $4.72 per common share, down from $8.295 billion, or $6.34 per common share in 2023 [76]. - The company reported a cash flow from operating activities of $15.960 billion in 2024, compared to $12.344 billion in 2023 [76]. - Adjusted operating earnings increased to $6.884 billion in 2024, compared to $6.677 billion in 2023, reflecting a growth of 3.1% [93]. - Corporate loss before income taxes was $(1,883) million in 2024, compared to $(1,296) million in 2023, influenced by unrealized foreign exchange losses and asset impairments [188]. - Adjusted funds from operations were $3.493 billion ($2.78 per common share) in Q4 2024, down from $4.034 billion ($3.12 per common share) in Q4 2023 [199]. - Net earnings for Q4 2024 were $818 million, significantly lower than $2.820 billion in Q4 2023, influenced by lower refined product realizations and increased royalties [198]. - The effective tax rate increased to 26.5% in 2024 from 21.7% in 2023, influenced by non-taxable gains and foreign exchange losses [195]. Production and Sales - Total Oil Sands production volumes increased to 773.8 mbbls/d in 2024, up from 689.6 mbbls/d in 2023, representing a 12.6% increase [67]. - Suncor achieved record upstream production of 827,600 bbls/d in 2024, up from 745,700 bbls/d in 2023, representing an increase of approximately 11.5% [84]. - Total Oil Sands bitumen production increased to 907,000 bbls/d in 2024, up from 819,800 bbls/d in 2023, primarily due to increased working interest in Fort Hills and strong mining performance [132]. - Total refined product sales reached a record of 600,400 bbls/d in 2024, up from 553,100 bbls/d in 2023, driven by higher refinery throughput [182]. - Total production averaged 53,800 mboe/d in 2024, a decrease from 56,100 mboe/d in 2023, with E&P Canada production increasing to 49,700 bbls/d [165]. Capital Expenditures and Investments - Capital expenditures for 2024 were $6.166 billion, an increase from $5.573 billion in 2023 [64]. - The company plans to allocate $6.1 billion to $6.3 billion for capital spending in 2025 [251]. - Economic investment expenditures in Oil Sands Base were $1.852 billion in 2024, focusing on the Upgrader 1 coke drum replacement and a new cogeneration facility [227]. - Refining and Marketing capital expenditures were $1.186 billion in 2024, primarily for asset sustainment and maintenance activities [233]. - Exploration and Production capital expenditures were $862 million in 2024, mainly for the West White Rose Project and SeaRose Asset Life Extension Project [232]. Debt and Financial Position - Suncor's net debt decreased to $6.861 billion in 2024 from $9.852 billion in 2023, reflecting improved financial condition [64]. - Total debt to total debt plus shareholders' equity decreased to 18.9% in 2024 from 21.1% in 2023 [243]. - The company reported a net debt to adjusted funds from operations ratio of 0.5 times in 2024, down from 0.7 times in 2023 [243]. - Cash and cash equivalents at the end of 2024 were $3.484 billion, compared to $1.729 billion at the end of 2023 [243]. - Available credit facilities increased to $5.475 billion at the end of 2024, up from $4.957 billion at the end of 2023 [255]. Operational Efficiency - The company achieved a refining and marketing gross margin of $36.40 per barrel in 2024, down from $45.00 per barrel in 2023 [67]. - Suncor's upgrader utilization reached 98% in 2024, up from 92% in 2023, indicating improved operational efficiency [84]. - Oil Sands operations cash operating costs per barrel decreased to $26.90 in 2024 from $29.70 in 2023, due to increased production and cost optimizations [148]. - Fort Hills cash operating costs per barrel decreased to $32.80 in 2024 from $34.40 in 2023, primarily due to increased production volumes [149]. - Syncrude cash operating costs per barrel decreased to $35.15 in 2024 from $37.15 in 2023, driven by increased production and workforce optimizations [150]. Market Conditions - The average price realization for upgraded net SCO and diesel was $97.91 per barrel in 2024, slightly down from $99.40 per barrel in 2023 [67]. - The average WTI crude oil price was $75.70/bbl in 2024, down from $77.60/bbl in 2023, reflecting a decrease of 2.9% [101]. - The average AECO natural gas benchmark price decreased to $1.35/GJ in 2024 from $2.50/GJ in 2023 [110]. - The Alberta power pool price averaged $62.80/MWh in 2024, down from $133.65/MWh in the previous year [111]. - The average WTI crude oil price in Q4 2024 was $70.30 per barrel, down from $78.35 per barrel in Q4 2023, indicating a decrease of approximately 10.5% [219].