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Why Is Suncor Energy (SU) Down 9.6% Since Last Earnings Report?
SUSuncor(SU) ZACKS·2025-03-07 17:36

Core Viewpoint - Suncor Energy's recent earnings report shows a mixed performance with strong production growth in the upstream segment but challenges in the downstream segment and overall revenue decline due to lower commodity prices [2][3][5]. Financial Performance - Adjusted operating earnings for Q4 2024 were 89 Canadian cents per share, exceeding the Zacks Consensus Estimate of 82 Canadian cents, but down from 93 Canadian cents in the same quarter last year [2]. - Operating revenues reached 8.9billion,surpassingestimatesby4.38.9 billion, surpassing estimates by 4.3%, but decreased approximately 14% year over year due to lower commodity prices [3]. - Total expenses increased by 6.2% to C11.4 billion compared to the prior-year quarter [17]. Shareholder Returns - The company distributed a total of C1.7billiontoshareholdersinQ42024,includingC1.7 billion to shareholders in Q4 2024, including C1 billion in share repurchases and C700millionindividends[4].−Aquarterlydividendof57Canadiancentspersharewasdeclared,unchangedfromthepreviousquarter[3].ProductionandOperationalHighlights−Upstreamproductionreachedarecord875,000barrelsperday(bbls/d),a20700 million in dividends [4]. - A quarterly dividend of 57 Canadian cents per share was declared, unchanged from the previous quarter [3]. Production and Operational Highlights - Upstream production reached a record 875,000 barrels per day (bbls/d), a 20% increase year over year, and exceeded the consensus estimate of 846,000 bbl/d [7]. - Oil sands bitumen production hit a record of 951,500 bbls/d, up from 866,200 bbls/d in the previous year [7]. - Refining throughput was near-record at 486,200 bbls/d, with refinery utilization at 104% [5][16]. Cost Management - Operating cost per barrel decreased to C26.55 from C30.80inthecorrespondingperiodof2023,attributedtohigherproductionandlowercommoditycosts[9][12].−CashoperatingcostsforOilSandsoperationsareexpectedtorangefromC30.80 in the corresponding period of 2023, attributed to higher production and lower commodity costs [9][12]. - Cash operating costs for Oil Sands operations are expected to range from C26 to C29perbarrelfor2025[21].FutureGuidance−For2025,SuncorEnergyexpectsupstreamproductiontorangefrom810,000to840,000barrelsofoilequivalentperday(boe/d)[19].−Totalcapitalexpendituresfor2025areprojectedtobebetweenC29 per barrel for 2025 [21]. Future Guidance - For 2025, Suncor Energy expects upstream production to range from 810,000 to 840,000 barrels of oil equivalent per day (boe/d) [19]. - Total capital expenditures for 2025 are projected to be between C6.1 billion and C$6.3 billion [22]. Market Sentiment - There has been an upward trend in estimates revision, with the consensus estimate shifting by 21.95% [23]. - The stock has a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [25].