Suncor Energy to Report Q1 Earnings: Here's What to Expect

Core Viewpoint - Suncor Energy Inc. is expected to report first-quarter 2025 earnings on May 6, with earnings estimated at 86 cents per share and revenues at $8.34 billion, reflecting a year-over-year decrease in both metrics [1][3]. Group 1: Previous Quarter Performance - In the last reported quarter, Suncor's earnings per share were 89 cents, surpassing the Zacks Consensus Estimate of 82 cents, driven by strong production growth in the upstream segment [2]. - The company's operating revenues for the previous quarter were $8.9 billion, exceeding the Zacks Consensus Estimate by 4.3% [2]. - Suncor has consistently beaten earnings estimates in the past four quarters, with an average surprise of 17.58% [3]. Group 2: Operational Insights - Suncor operates in three main segments: Oil Sands, Exploration and Production, and Refining and Marketing, generating revenue through crude oil extraction, offshore production, and refining operations [4]. - The company is projected to process 462 million barrels of crude oil per day in its refineries, an increase of 6.7 mbbls/d from Q1 2024, while oil sands production is expected to reach 792 mbbls/d, up 7 mbbls/d from the same period [5]. Group 3: Market Challenges - Despite operational strengths, profitability may be challenged by external market factors, including weaker oil prices and refining margins, which could limit revenue growth [6]. - Fluctuations in refining crack spreads and fuel demand may pressure downstream margins, impacting financial benefits from record throughput levels [7]. - Inflationary pressures are likely to increase operational expenses, affecting overall profitability in the upcoming quarter [7]. Group 4: Earnings Prediction - The Zacks model does not predict an earnings beat for Suncor this time, as the Earnings ESP is -5.60% and the company holds a Zacks Rank of 3 [8][9].