Suncor Energy to Report Q2 Earnings: Here's What to Expect

Core Viewpoint - Suncor Energy Inc. is expected to report a decline in earnings and revenues for the second quarter of 2025, with earnings estimated at 50 cents per share and revenues at $7.6 billion, reflecting significant year-over-year decreases [1][8]. Group 1: Previous Performance - In the first quarter of 2025, Suncor Energy reported earnings of 91 cents per share, surpassing the Zacks Consensus Estimate of 86 cents, driven by strong production growth in its upstream segment [2]. - The company's operating revenues for Q1 2025 were $8.7 billion, exceeding the Zacks Consensus Estimate by 3.9% [2]. - Suncor has consistently beaten earnings estimates in the past four quarters, with an average surprise of 14.9% [3]. Group 2: Production Expectations - The consensus estimate for Suncor's daily oil sands production in Q2 2025 is projected to reach 731 thousand barrels, an increase of 15 thousand barrels from Q2 2024 [5]. - Daily syncrude production is expected to rise to 213 thousand barrels of oil equivalent, up 42 thousand barrels from the same period last year [5]. - The first quarter of 2025 showed continued improvement in performance, which is anticipated to carry into the second quarter [5]. Group 3: Revenue and Market Challenges - Suncor's Q2 revenues are expected to decline by 19.7% year-over-year to $7.6 billion, influenced by higher production being offset by tariffs, outages, and pipeline constraints [8]. - The company faces potential execution risks from large-scale turnarounds, including a 91-day outage for Upgrader 1, which could impact throughput, margins, and cash flows [6]. - Trade disruptions, including U.S. tariffs on Canadian crude, may affect Suncor's export market, potentially lowering realized prices despite a strong domestic presence [6][8]. Group 4: Earnings Prediction - The Zacks model does not predict an earnings beat for Suncor this quarter, as the Earnings ESP is 0.00% and the company holds a Zacks Rank of 3 [9][10].