Suncor Energy quarterly profit surges, plans to divest assets

By Ruhi Soni and Rithika Krishna

(Reuters) -Suncor Vitality Inc posted an over fourfold soar in its second-quarter revenue on Thursday, because the oil producer benefited from a rally in commodity costs, and floated plans to divest belongings and slim down its portfolio.

Sanctions towards main vitality producer Russia have worsened provide points, sending world crude costs up almost 48% within the first half of the 12 months as vitality firms are but to spice up manufacturing to satisfy hovering gasoline demand.

Suncor, Canada’s third-largest oil producer, mentioned it has signed a deal to divest its Norway belongings for about $410 million, and has additionally begun a sale course of for its whole UK enterprise after receiving curiosity.

It didn’t disclose particulars of the Norwegian or UK asset consumers.

The Calgary, Alberta-based agency had reached an settlement with activist investor Elliott Funding Administration final month. As a part of the settlement, it appointed three new unbiased administrators and mentioned it will evaluation its retail gasoline station enterprise.

Elliott had criticized Suncor’s operational and security document. Final month, Mark Little stepped down as chief government officer, a day after the demise of a Suncor employee, the thirteenth web site fatality since 2014.

Suncor on Thursday raised its full-year capital expenditure forecast to $4.9 billion-$5.2 billion from $4.7 billion beforehand, citing inflationary pressures and elevated spending on security enchancment.

It has lowered its 2022 manufacturing forecast to 740,000-760,000 barrels per day from 750,000-790,000.

The corporate expects to finish sale of its Norwegian belongings within the fourth quarter. The belongings embrace offshore Oda, Fenja, and Beta fields, wherein Suncor holds various stakes of 17.5% to 30%, as per its web site.

Whole upstream manufacturing within the reported quarter stood at 720,200 barrels of oil equal per day (boepd), in contrast with 699,700 boepd 12 months earlier.

The corporate’s refinery crude throughput rose almost 20% to 389,300 barrels per day.

Internet earnings rose greater than fourfold to C$3.996 billion ($3.11 billion), or C$2.84 per share.

($1 = 1.2867 Canadian {dollars})

(Reporting by Rithika Krishna and Ruhi Soni in Bengaluru; Further reporting by Anirudh Saligrama; Enhancing by Sherry Jacob-Phillips)