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Suncor Energy Inc. SU reported first-quarter 2025 adjusted operating earnings of 91 cents per share, which beat the Zacks Consensus Estimate of 86 cents. This outperformance can be attributed to strong production growth in its upstream segment. However, the bottom line declined from the year-ago quarter’s reported figure of $1.05 due to lower adjusted operating earnings in the downstream segment.
Operating revenues of $8.7 billion beat the Zacks Consensus Estimate by 3.9%. However, the top line decreased approximately 6.7% year over year. This decrease was caused by lower upstream sales volumes.
Suncor Energy Inc. price-consensus-eps-surprise-chart | Suncor Energy Inc. Quote
Suncor Energy’s board of directors declared a quarterly dividend of 57 Canadian cents per share for its common shareholders of record as of June 4, 2025. The payout, which is unchanged from the previous quarter, will be made on June 25.
The Alberta-based integrated energy company distributed a total of C$1.5 billion to its shareholders, including C$750 million in share repurchases and C$705 million in dividends in the fourth quarter. The company generated C$3 billion in adjusted funds from operations and C$1.9 billion in free cash flow in the quarter.
In the quarter under discussion, the company generated the highest first-quarter upstream production in its history, reaching 853,000 barrels per day (bbls/d) with upgrader utilization at 102%. Refining throughput was also the highest first quarter for the company, totaling 483,000 bbls/d, with refinery utilization at 104%. Refined product sales hit a record 605,000 bbls/d in the quarter under review.
(Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
Upstream: Total production in this segment increased 2.14% year over year to 853,200 bbls/d from 835,300 bbls/d. However, the figure beat the consensus estimate of 852,000 bbls/d.
In the first quarter of 2025, total oil sands bitumen production hit a record 937,300 bbls/d compared with 932,100 bbls/d in the previous-year quarter. This growth was primarily fueled by record output at Firebag.
The company’s E&P volume (international, offshore and natural gas) increased 23.9% to 62,300 barrels of oil equivalent per day (boe/d) from 50,300 boe/d in the year-ago quarter, driven by increased production from Terra Nova and Hebron. Additionally, the figure beat the consensus estimate of 52,000 boe/d.
Operating earnings totaled C$1.6 billion, indicating a 10.3% decrease from the year-ago quarter’s C$1.8 billion.
Operating costs from Oil Sands operations increased to C$27.80 per barrel from C$26.85 in the corresponding period of 2024. This increase was mainly because of a higher proportion of Fort Hills bitumen being directed to upgrading at Oil Sands Base, increased mining activity and higher natural gas volumes related to increased consumption at the new cogeneration facility. Total oil sands production rose to 790,900 bbls/d in the first quarter of 2025, up from 785,000 bbls/d in the previous year. However, the figure lagged the consensus estimate of 792,000 bbls/d.
Non-upgraded bitumen production rose to 254,300 bbls/d from 240,000 bbls/d in the previous year. However, the figure was behind the consensus estimate of 262,000 bbls/d. Net SCO and diesel production decreased to 536,600 bbls/d from 545,000 bbls/d a year earlier. However, the number surpassed the consensus estimate of 530,000 bbls/d.
Fort Hills reported an average first-quarter volume of 176,400 barrels per day (bpd), lower than the year-ago quarter’s level of 177,600 bpd. However, the figure beat the consensus estimate of 170,000 boe/d. The Fort Hills cash operating cost per barrel increased to C$33.85 from C$32.85 in the prior-year period. This was due to the timing of maintenance activities and a decrease in excess power revenues resulting from lower power prices.
Furthermore, Syncrude’s cash operating costs per barrel increased to C$36.10 from C$35.70 in the same quarter last year. This increase was mainly caused by increased mining and maintenance activity.
The oil sands base upgrader operated at 103% capacity and Syncrude achieved a record 100%, compared with 107% and 96%, respectively, in the prior-year quarter. The decrease was primarily due to fewer maintenance activities in the prior-year quarter.
Downstream: Refining and Marketing adjusted operating earnings for the first quarter of 2025 were C$667 million, down from C$1118 million in the same quarter last year. The decline in adjusted operating earnings was mainly due to lower benchmark crack spreads.
Refined product sales totaled 604,900 bpd, up from the prior-year quarter’s level of 581,000 bpd. This growth was driven by higher refinery throughput and the benefit of the company’s extensive sales and retail network.
Refinery crude throughput totaled 482,700 bpd compared with 455,300 bpd in the year-ago period. Additionally, the number surpassed the consensus estimate of 462,000 bpd.
Refinery utilization was 104% compared with 98% a year ago. This increase in refinery crude throughput was due to strong utilization rates.
Total expenses decreased 1.4% to C$10.2 billion from the prior-year quarter. Operating, selling and general expenses decreased to $3.3 billion as compared to $3.4 billion in the same quarter last year. This was mainly due to lower upstream sales volumes and a corresponding decrease in operating expenses as inventory was built in the latter part of the quarter.
Cash flow from operating activities amounted to C$2.2 billion, down from the prior-year quarter’s level of C$2.8 billion. Suncor Energy incurred capital expenditures worth C$1.1 billion in the first quarter of 2025.
As of March 31, 2025, the company had cash and cash equivalents of C$2.8 billion and long-term debt of C$9.3 billion. Its debt to capitalization was 18.7%.
SU has already released its guidance for 2025. It expects upstream production to range from 810,000 boe/d to 840,000 boe/d for 2025. This includes upgraded net SCO and diesel production, which is predicted to be between 485,000 boe/d and 495,000 boe/d, along with non-upgraded bitumen production expected to fall between 280,000 boe/d and 290,000 boe/d.
Oil Sands Operations production is anticipated to range from 445,000 boe/d to 470,000 boe/d, with Fort Hills contributing between 165,000 boe/d and 175,000 boe/d, and Syncrude (58.74% WI) expected to produce between 190,000 boe/d and 200,000 boe/d. Additionally, E&P production is forecasted to be within the range of 45,000-55,000 boe/d.
On the other hand, the company expects cash operating costs for its Oil Sands operations in the range of C$26-C$29 per barrel. Specifically, cash operating costs for Fort Hills are expected in the band of C$33-C$36 per barrel, while costs for Syncrude are anticipated in the range of C$34-C$37.
The company expects refinery throughput to be between 435,000 bpd and 50,000 bpd, refinery utilization in the band of 93-97% and refined product sales in the range of 555,000-585,000 barrels per day.
Suncor Energy expects its total capital expenditures for 2025 to be between C$6.1 billion and C$6.3 billion.
SU currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While we have discussed Suncor Energy’s first-quarter results in detail, let us take a look at some other key energy reports of this season.
The energy infrastructure providerTC Energy Corporation TRP reported first-quarter 2025 adjusted earnings of 66 cents per share, which missed the Zacks Consensus Estimate of 70 cents. Moreover, the bottom line decreased from 92 cents in the year-ago period. This underperformance could be attributed to weak Power and Energy Solutions segment results.
TRP’s quarterly revenues of $2.5 billion also missed the Zacks Consensus Estimate by $18 million. The figure decreased 19.8% year over year.
As of March 31, 2025, TC Energy’s capital investments amounted to C$1.8 billion. TRP had cash and cash equivalents worth C$2 billion and long-term debt of C$45 billion, with a debt-to-capitalization of 61.1% as of the same date.
Oil and gas equipment and services provider TechnipFMC plc FTI reported first-quarter 2025 adjusted earnings of 33 cents per share, which missed the Zacks Consensus Estimate of 36 cents, primarily due to a 4.8% year-over-year increase in costs and expenses. However, the bottom line increased from the year-ago quarter’s reported profit of 22 cents, driven by improved performance in the Subsea segment.
The company’s revenues of $2.2 billion missed the Zacks Consensus Estimate by 1.1%. However, the top line increased from the year-ago quarter’s reported figure of $2 billion.
As of March 31, FTI had cash and cash equivalents worth $1.2 billion and long-term debt of $410.8 million, with a debt-to-capitalization of 11.8%.
Houston, TX-based oil and gas equipment and services provider Baker Hughes BKR reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents.
As of March 31, 2025, Baker had cash and cash equivalents of $3,277 million. Baker had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.
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This article originally published on Zacks Investment Research (zacks.com).
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