Business Suncor Energy's quarterly loss broadens on one-time disability charge

Suncor Energy’s quarterly loss broadens on one-time disability charge

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Suncor Energy Inc, Canada’s second- biggest oil and gas manufacturer, posted a bigger quarterly loss on Wednesday, dented by a substantial one-time disability charge.

Neglecting one-off items, the business made 51 cents per share, missing out on average analyst price quotes of 63 cents, according to IBES info from Refinitiv.

The Calgary, Alberta-based business posted a loss of $2.3 billion, or $1.52 per share, in the 4th quarter ended Dec. 31, compared to a loss of $280 million, or $0.18 per share, a year previously.

The business tape-recorded an after-tax disability charge of $2.8 billion on its share of the Fort Hills residential or commercial properties in the oilsands sector, due to a decline in prepared for long-lasting heavy petroleum costs.

Travis Wood, an analyst with National Bank of Canada, stated the one-time disabilities eclipsed an otherwise ‘in-line quarter’, and duplicated its sector carry out score with a target rate of $43 pershare The stock was trading higher on U.S. futures market to $31 per share.

The board has actually licensed a renewal of share repurchase program of approximately $2 billion start March 1, Suncor specified, including it has actually likewise supplied its nod for a quarterly dividend of $0.465 per share, representing a boost of 11 percent compared to the previous quarter.

Michael Dunn, a professional at Stifel First Energy stated the results were have a somewhat undesirable effect on the stock, in spite of the dividend bump.

” The dividend boost was not a big surprise. We anticipate missed 2019 capex and opex guidance, and operational and cost problems at some of its smaller sized assets (Mackay River, Terra Nova, West White Rose) to weigh on belief on the stock on Thursday,” Dunn specified in a note to customers.

General upstream production in the quarter stood at 778,200 barrels of oil similar every day (boepd), below 831,000 boepd in the year-ago duration, the business stated, and maintained its annual production outlook of in between 800,000 and 840,000 boepd.

Suncor’s production fell as a result of required curtailments enforced by the Alberta provincial federal government because last January, implied to alleviate blockage on export pipelines.

© & copy; Thomson Reuters 2020

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