Suncor Reports Third Quarter Net Loss on Fort Hills Impairment – Business News

Suncor Inc. said it posted a net loss of $609 million in the third quarter due to a $3.4 billion writedown against its share of the Fort Hills oil sands mine.

The net loss, which equated to 45 cents per common share, contrasts with a profit of $877 million, or 59 cents per common share, in the year-ago quarter.

Suncor announced last week that it will buy out Teck Resources Ltd.’s 21.3% stake. in the Fort Hills oil sands project for about $1 billion. The agreed sale price reflects a lower market value for the mine, resulting in a non-cash impairment charge.

On an adjusted basis, Suncor says it earned $2.6 billion for the three months ended Sept. 30, or $1.88 per share, compared with $1.0 billion or 71 cents per common share in the same three month of 2021.

Adjusted operating income was primarily driven by significantly higher crude oil prices and higher upstream production, partially offset by higher income taxes, royalties and operating expenses.

Suncor’s total upstream production increased to 724,100 barrels of oil equivalent per day (boe/d) in the third quarter of 2022, compared to 698,600 boe/d in the prior year quarter. Refinery crude throughput was 466,600 barrels per day and refinery utilization was 100% in the third quarter of 2022, compared to 460,300 barrels per day and 99% in the third quarter of 2021.