Suncor Energy Q3 Earnings & Revenues Beat Estimates, Both Down Y/Y

Core Insights - Suncor Energy Inc. reported third-quarter 2025 adjusted operating earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of 85 cents, driven by strong production growth in its upstream segment, although it slightly declined from $1.08 in the previous year due to lower upstream price realizations [1][9] Financial Performance - Operating revenues reached $9.2 billion, surpassing the Zacks Consensus Estimate by 11.1%, primarily due to increased sales volumes in both upstream and downstream segments, despite a year-over-year decrease of approximately 3.9% [2] - The company declared a quarterly dividend of 60 Canadian cents per share, representing a 5% increase from the previous quarter, payable on December 24, 2025 [2] - Total expenses increased by 0.8% to C$10.5 billion, with operating, selling, and general expenses rising to C$3.3 billion due to higher production and sales volumes, as well as increased share-based compensation [15] Production and Operational Highlights - Suncor achieved record upstream production of 870,000 barrels per day (bbls/d), a 5% increase year-over-year, and exceeded the consensus estimate of 850,000 bbls/d [4][5] - Oil sands bitumen production increased to 958,300 bbls/d from 909,600 bbls/d in the previous year, driven by record output at Fort Hills and Firebag [5] - Refining throughput reached a record of 492,000 bbls/d with refinery utilization at 106%, and refined product sales totaled 647,000 bbls/d, up from 612,300 bbls/d in the prior year [4][12] Cash Flow and Shareholder Returns - The company distributed a total of C$1.4 billion to shareholders, including C$750 million in share repurchases and C$700 million in dividends, while generating C$3.8 billion in adjusted funds from operations and C$2.3 billion in free cash flow [3] - Cash flow from operating activities amounted to C$3.8 billion, down from C$4.3 billion in the prior year, with capital expenditures of C$1.4 billion [16] Guidance and Future Outlook - Suncor raised its 2025 production and throughput guidance, increasing upstream production volumes to a range of 845,000-855,000 bbls/d and refinery throughput to 470,000-475,000 bbls/d [17]