CALGARY, ALBERTA, Jul 29, 2015 (Marketwired by means of COMTEX) -- except otherwise stated, all economic figures are unaudited, offered in Canadian bucks (Cdn$), and have been organized based on foreign fiscal Reporting requisites (IFRS), above all international Accounting average (IAS) 34 intervening time fiscal Reporting as issued by using the overseas Accounting requisites Board. production volumes are presented on a working pastime foundation, before royalties, unless stated otherwise. certain monetary measures spoke of during this document (money circulate from operations, working revenue, Oil Sands cash operating charges and free cash circulate) aren't prescribed by means of Canadian often accepted accounting ideas (GAAP). See the Non-GAAP monetary Measures component to this information free up. References to grease Sands operations, production and cash operating prices exclude Suncor's pastime in Syncrude's operations.
"Suncor generated amazing money flows in extra of $2.1 billion all the way through the 2d quarter of 2015, greater than ample to fund their capital necessities and their dividend," pointed out Steve Williams, president and chief government officer. "in consequence, we're returning greater cost to shareholders by expanding their dividend and renewing their share buyback program."
- cash circulation from operations of $2.155 billion ($1.49 per commonplace share) versus $2.406 billion ($1.64 per regular share) within the prior year quarter, despite a lessen in crude oil benchmarks of over 40%.
- operating revenue of $906 million ($0.sixty three per standard share) and internet revenue of $729 million ($0.50 per usual share).
- solid refinery utilization and a beneficial downstream business environment resulted in Refining and advertising operating income of $631 million.
- creation from Oil Sands operations improved by means of 45,000 barrels per day (bbls/d) from the prior yr quarter, to 423,800 bbls/d, regardless of planned upkeep at Firebag. The boost, combined with decrease natural gasoline fees and a continued focal point on can charge discount initiatives, resulted in an extra lessen in money operating costs per barrel to $28.00 for the quarter.
- The company's 2015 capital expenditures outlook has been decreased by $400 million to $5.eight - $6.4 billion as a result of Suncor's endured focal point on capital self-discipline and cost reduction initiatives.
- Suncor's Board of directors has authorised an increase to the business's dividend to $0.29 per typical share, and the renewal of the proportion repurchase application, demonstrating the enterprise's potential to generate money flows and return cost to shareholders.
Suncor energy Inc. recorded second quarter 2015 operating earnings of $906 million ($0.sixty three per usual share) and money movement from operations of $2.155 billion ($1.forty nine per ordinary share), in comparison to $1.135 billion ($0.77 per general share) and $2.406 billion ($1.64 per average share), respectively, within the prior year quarter, reflecting the lessen crude oil rate environment. Highlights of the 2d quarter blanketed increased Oil Sands operations production, a favourable downstream pricing atmosphere and strong refinery utilizations. For the twelve months ended June 30, 2015, free money move become $795 million, in comparison to $three.599 billion for the twelve months ended June 30, 2014.
net income had been $729 million ($0.50 per common share) in the second quarter of 2015, compared with internet revenue of $211 million ($0.14 per average share) in the prior year quarter, which blanketed impairment prices. internet salary for the 2d quarter of 2015 protected a $423 million deferred income tax cost concerning a 2% enhance within the Alberta corporate earnings tax rate. all the way through the second quarter of 2015, the enterprise also recorded an after-tax foreign alternate benefit on the revaluation of U.S. dollar denominated debt of $178 million and an after-tax benefit of $68 million on the disposal of the company's share of certain belongings and liabilities of Pioneer energy in the Refining and advertising and marketing segment. web earnings in the prior year quarter included after-tax impairment prices of $718 million on the business's pastime in the Joslyn mining venture, $297 million towards the enterprise's Libyan property, and $223 million on a variety of Oil Sands property, in part offset via an after-tax international exchange profit of $282 million.
Suncor's complete upstream production became 559,900 barrels of oil equivalent per day (boe/d) within the second quarter of 2015, compared with 518,four hundred boe/d within the prior 12 months quarter, due essentially to robust reliability in Oil Sands operations and the endured ramp up of Golden Eagle creation in the U.ok.
Oil Sands operations creation turned into 423,800 bbls/d within the second quarter of 2015, in comparison to 378,800 bbls/d in the prior 12 months quarter, essentially as a result of reliable operations leading to minimal unplanned preservation. planned renovation at Firebag and at Upgrader 1 was completed all over the second quarter of 2015.
cash operating expenses per barrel for Oil Sands operations diminished in the 2nd quarter of 2015 to $28.00/bbl, compared to $34.10/bbl in the prior year quarter, due to improved creation and reduce expenses because of reduce natural gasoline expenditures and a persisted focus on can charge reduction initiatives.
"because of their continued focal point on operational excellence, construction at Oil Sands operations increased by 45,000 bbls/d," said Williams. "at the equal time, they decreased their absolute working prices according to the commitments they outlined in the first quarter of this yr."
Suncor's share of Syncrude creation turned into 24,900 bbls/d in the 2nd quarter of 2015, and remained similar to the prior yr's 2d quarter construction of 24,300 bbls/d as each intervals protected planned preservation.
construction volumes in Exploration and construction (E&P) decreased to 111,200 boe/d within the 2d quarter of 2015, in comparison to a hundred and fifteen,300 boe/d within the prior year quarter, essentially as a result of a deliberate turnaround at Terra Nova right through the 2d quarter of 2015 and herbal declines at Hibernia and White Rose. These have been partly offset with the aid of the persisted ramp up of production from Golden Eagle. construction in Libya is still notably shut in due to political unrest, with the timing of a return to normal operations remaining doubtful.
during the 2d quarter of 2015, Refining and marketing accomplished planned preservation on the Edmonton and Sarnia refineries. average refinery utilization more advantageous to ninety% within the 2d quarter, compared to 85% in the prior year quarter, which included planned renovation pursuits on the Montreal and Edmonton refineries.
Suncor continues to center of attention on safely and reliably working their property, and optimizing the price chain via integration. Subsequent to the quarter, the enterprise reached an settlement with TransAlta organisation (TransAlta) to change Suncor's Kent Breeze and its share of the Wintering Hills wind vigour amenities for TransAlta's Poplar Creek cogeneration facilities, which provide steam and energy to Suncor's Oil Sands operations.
"The agreement with TransAlta is aligned with their strategy of bringing property which are indispensable to their operations in-residence. because of securing the long-term future use of the Poplar Creek cogeneration facilities, they predict to increase effectivity, reliability and profitability," concluded Williams.
Subsequent to the quarter, Suncor's Board of directors approved a rise to the company's quarterly dividend to $0.29 per average share.
Oil Sands Operations
Oil Sands operations persevered work on tasks that increase safety, reliability and environmental efficiency, including the completion of planned protection at Firebag and annual coker renovation in Upgrader 1. 2d quarter spending additionally blanketed ongoing neatly pad building to keep current production ranges at Firebag and MacKay River.
Oil Sands Ventures
The castle Hills project remains on schedule with designated engineering activities 89% comprehensive at the conclusion of the second quarter, while development actions had been 34% finished. Spending all over the quarter blanketed engineering, procurement, module fabrication and site construction. The challenge is expected to convey approximately seventy three,000 bbls/d of bitumen to Suncor's operations, with first oil expected in the fourth quarter of 2017 and 90% of its deliberate means being reached within twelve months thereafter.
Exploration and construction
Golden Eagle production averaged 15,000 boe/d (net) within the 2d quarter of 2015, as further wells have been brought on-line. building of the Hebron mission continued within the 2d quarter of 2015, with first oil expected in 2017.
growth capital in East Coast Canada includes field extension initiatives that leverage current amenities and infrastructure. First oil changed into accomplished on the South White Rose Extension challenge during the 2d quarter of 2015 and drilling actions continue. growth capital also protected spending related to drilling in the North Sea.
working profits Reconciliation(1)
Three months ended Six months ended June 30 June 30 (C$ tens of millions) 2015 2014 2015 2014 ---------------------------------------------------------------------------- web salary 729 211 388 1 696 Unrealized foreign alternate (benefit) loss on U.S. dollar denominated debt (178) (282) 762 26 influence of profits tax fee alterations on deferred taxes(2) 423 - 17 - benefit on significant disposal(3) (sixty eight) - (68) - Restructuring expenses(four) - - fifty seven - coverage proceeds(5) - - (seventy five) Impairments(6) - 1 238 - 1 238 Reserves redetermination(7) - (32) - (32) ---------------------------------------------------------------------------- operating revenue(1) 906 1 a hundred thirty five 1 081 2 928 ---------------------------------------------------------------------------- (1) operating salary is a non-GAAP economic measure. All reconciling objects are introduced on an after-tax basis. See the Non-GAAP economic Measures Advisory portion of Suncor's administration's discussion and analysis dated July 29, 2015 (the MD&A.) (2) changes to the enterprise's deferred income taxes from a 12% lower within the U.okay. tax expense on oil and gas profits from the North Sea within the first quarter of 2015, and a 2% increase within the Alberta company salary tax cost within the second quarter of 2015. (3) After-tax profit related to the sale of the business's share of definite belongings and liabilities of Pioneer power within the Refining and advertising and marketing phase. (4) Restructuring fees involving the charge reduction initiatives in the company phase. (5) business interruption proceeds for assurance on the Terra Nova asset within the E&P section. (6) After-tax impairment expenses of $718 million on the business's hobby in the Joslyn mining project, $297 million towards the enterprise's Libyan property, and $223 million regarding definite assets within the Oil Sands segment following a review of repurpose alternatives as a result of previously revised growth ideas. (7) Reserves redetermination of 1.2 million barrels of oil receivable related to an interest in a Norwegian asset that Suncor up to now owned.
Suncor has up to date its 2015 company advice in the past issued on April 29, 2015. The changes to the business's suggestions are presented below and are in accordance with yr up to now consequences and the company's latest forecasts.
The outlook latitude for capital fees has been reduced from $6.2 - 6.8 billion to $5.eight - 6.4 billion as non-primary tasks were re-evaluated as a part of the company's charge discount initiatives and normal method to capital self-discipline. The adjustments are as follows.
2015 Full yr Outlook 2015 Full 12 months Outlook April 29, 2015 Revised July 29, 2015 ---------------------------------------------------- Capital % increase Capital % increase (C$ hundreds of thousands) charges Capital costs Capital ---------------------------------------------------------------------------- Oil Sands operations 2 a hundred and fifty - 2 four hundred 10% 1 950 - 2 200 15% Oil Sands ventures 1 seven-hundred - 1 850 90% 1 seven hundred - 1 850 90% Oil Sands total three 850 - 4 250 forty five% 3 650 - 4 050 50% Exploration and construction 1 450 - 1 550 95% 1 250 - 1 350 95% Refining and advertising and marketing 750 - 800 5% 750 - 800 5% corporate a hundred and fifty - 200 70% a hundred and fifty - 200 70% ---------------------------------------------------------------------------- total 6 200 - 6 800 50% 5 800 - 6 400 fifty five% ----------------------------------------------------------------------------
The outlook for Suncor's complete construction has elevated via web 10,000 boe/d to 550,000 - 595,000 boe/d as follows.
2015 Full yr Outlook 2015 Full yr Outlook April 29, 2015 Revised July 29, 2015 ---------------------------------------------------------------------------- Suncor complete construction (boe/d) 540 000 - 585 000 550 000 - 595 000 Oil Sands (bbls/d) 410 000 - 440 000 410 000 - 440 000 Syncrude (bbls/d) 32 000 - 36 000 32 000 - 36 000 Exploration and creation - Canada (boe/d) fifty three 000 - fifty eight 000 47 000 - fifty two 000 Exploration and construction - overseas (boe/d) 45 000 - fifty one 000 sixty one 000 - 67 000 ---------------------------------------------------------------------------- revenue Assumptions Oil Sands earnings(3) artificial Crude Oil (bbls/d) 285 000 - 315 000 300 000 - 330 000 Diesel 10% 10% candy forty% 35% sour 50% 55% Bitumen (bbls/d) 120 000 - 140 000 one hundred and five 000 - one hundred twenty five 000 ---------------------------------------------------------------------------- (1) Capital charges exclude capitalized pastime of $350 million - $450 million. (2) For definitions of boom and sustaining capital costs, see the Capital investment replace component of the MD&A. (three) income consist of upgraded Oil Sands artificial crude oil and bitumen. The reduce and upper levels for these income categories don't seem to be supposed so as to add to the Oil Sands construction stages. The sales degrees mirror the built-in upgrading and bitumen production efficiency chance.
The outlook for Oil Sands cash working charges has been reduced from $30.00 - $33.00/bbl to $28.00 - $31.00/bbl. Suncor's outlook for its Canadian tax fee has changed to 26% - 27% and its foreign tax rate has changed to 30% - 35%.
For further details and advisories concerning Suncor's 2015 revised corporate assistance, see suncor.com/assistance.
regular path provider Bid
Subsequent to June 30, 2015, the Toronto inventory change (TSX) authorised a note filed with the aid of Suncor of its intention to renew its normal course provider bid (the NCIB) to proceed to purchase shares beneath its up to now announced buyback application through the facilities of the TSX, new york stock trade and/or alternative trading systems. The notice offers that Suncor may also buy for cancellation as much as approximately $500 million worth of its standard shares starting August 5, 2015 and ending August 4, 2016.
The specific variety of ordinary shares that could be purchased and the timing of this sort of purchases may be determined by way of Suncor. Suncor believes that, counting on the buying and selling fee of its common shares and other vital elements, purchasing its personal shares represents funding chance and is in the foremost pastimes of the enterprise and its shareholders. Between July 23, 2014 and December 31, 2014, and pursuant to Suncor's up to now announced normal route provider bids, Suncor effectively achieved the purchase of approximately $897 million price of its standard shares (22,454,976), at a weighted common rate of $39.ninety three per common share. As at July 23, 2015, Suncor had 1,445,849,364 normal shares issued and striking. Pursuant to the NCIB, Suncor has agreed that it is going to not purchase more than forty three,375,481 common shares, which is equal to about 3% of Suncor's issued and staggering regular shares.
area to the block purchase exemption it's purchasable to Suncor for usual open market purchases beneath the NCIB, Suncor will limit every day purchases of Suncor general shares on the TSX in reference to the NCIB to no more than 25% (786,498) of the ordinary daily buying and selling extent of Suncor's general shares on the TSX throughout any buying and selling day. in the future, Suncor might also enter into an computerized share purchase plan in the case of purchases made in connection with the NCIB.
Non-GAAP financial Measures
operating revenue and Oil Sands cash operating expenses are defined in the Non-GAAP financial Measures Advisory component of the MD&A and reconciled to GAAP measures in the Consolidated financial assistance and section results and analysis sections of the MD&A. money circulation from operations and free cash circulation are described and reconciled to GAAP measures in the Non-GAAP economic Measures Advisory element of the MD&A. These non-GAAP financial measures are covered as a result of administration makes use of this assistance to investigate business performance, leverage and liquidity. These non-GAAP measures would not have any standardized that means and hence are not likely to be akin to an identical measures presented via different corporations and should now not be regarded in isolation or as an alternative to measures of performance organized in accordance with GAAP.
legal Advisory - forward-looking tips
This news unlock consists of certain forward-looking guidance and forward-looking statements (together said herein as "ahead-looking statements") in the which means of applicable Canadian and U.S. securities legal guidelines. forward-searching statements are in response to Suncor's existing expectations, estimates, projections and assumptions that had been made through the company in mild of its counsel available at the time the commentary become made and agree with Suncor's experience and its belief of old traits, including expectations and assumptions concerning: the accuracy of reserves and substances estimates; commodity prices and interest and overseas change rates; capital efficiencies and price rate reductions; relevant royalty rates and tax laws; future construction costs; the sufficiency of budgeted capital charges in engaging in deliberate activities; the supply and value of labour and capabilities; and the receipt, in a well timed method, of regulatory and third-celebration approvals. additionally, all other statements and tips about Suncor's method for boom, expected and future expenses or investment selections, commodity costs, expenses, schedules, creation volumes, operating and fiscal consequences and the expected have an effect on of future commitments are forward-searching statements. one of the most ahead-looking statements and advice may well be identified by way of words like "expects", "anticipates", "will", "estimates", "plans", "scheduled", "intends", "believes", "projects", "shows", "might", "focus", "vision", "goal", "outlook", "proposed", "goal", "objective", "continue", "should", "might also" and equivalent expressions.
ahead-looking statements during this information unlock consist of references to: the expectation that securing the lengthy-term future use of the Poplar Creek cogeneration amenities will improve effectivity, reliability and profitability; Suncor's boom tasks, including: (i) statements around the citadel Hills mining venture, which is anticipated to carry approximately seventy three,000 bbls/d of bitumen to Suncor's operations, with first oil anticipated within the fourth quarter of 2017 and 90% of its planned capacity being reached inside twelve months thereafter; and (ii) statements around Hebron first oil in 2017; and the enterprise's capital allocation plans, expected capital expenditures of $5.eight to $6.4 billion, outlook for creation, anticipated Oil Sands cash working prices and estimated Canadian and international tax rate.
forward-searching statements and assistance aren't ensures of future performance and involve a few dangers and uncertainties, some which are similar to other oil and gas businesses and a few that are pleasing to Suncor. Suncor's precise results may range materially from those expressed or implied by way of its forward-looking statements, so readers are advised not to place undue reliance on them.
Suncor's MD&A and Annual suggestions kind, form 40-F and Annual record to Shareholders, each dated February 26, 2015, and different files it info now and again with securities regulatory authorities describe the dangers, uncertainties, cloth assumptions and different components that might have an effect on exact consequences and such factors are integrated herein by reference. Copies of these documents can be found for gratis from Suncor at one hundred fifty 6th Avenue S.W., Calgary, Alberta T2P 3E3, by calling 1-800-558-9071, or by means of e-mail request to email@example.com or by using regarding the business's profile on SEDAR at sedar.com or EDGAR at sec.gov. except as required via relevant securities legal guidelines, Suncor disclaims any intention or responsibility to publicly replace or revise any forward-looking statements, whether because of new advice, future activities or in any other case.
criminal Advisory - BOEs
definite herbal fuel volumes have been converted to barrels of oil equal (boe) on the foundation of 1 barrel to six thousand cubic ft. Any determine introduced in boe can be misleading, chiefly if utilized in isolation. A conversion ratio of 1 bbl of crude oil or natural gasoline beverages to six thousand cubic toes of herbal gas is in accordance with an energy equivalency conversion formulation essentially relevant on the burner tip and doesn't symbolize a price equivalency at the wellhead. since the price ratio in line with the existing fee of crude oil as in comparison to herbal gasoline is tremendously distinctive from the power equivalency of 6:1, applying a conversion on a 6:1 basis may be misleading as a demonstration of price.
Suncor power is Canada's main built-in energy enterprise. Suncor's operations encompass oil sands building and upgrading, everyday and offshore oil and gas construction, petroleum refining, and product advertising under the Petro-Canada manufacturer. A member of Dow Jones Sustainability indexes, FTSE4Good and CDP, Suncor is working to responsibly strengthen petroleum substances whereas additionally starting to be a renewable energy portfolio. Suncor is listed on the UN international Compact 100 inventory index and the company Knights' world a hundred. Suncor's average shares (image:SU) are listed on the Toronto and big apple stock exchanges.
For greater information about Suncor discuss with their web site at suncor.com, observe us on Twitter @SuncorEnergy or come and spot what sure can do.
A full copy of Suncor's second quarter 2015 record to Shareholders and the monetary statements and notes (unaudited) can be downloaded at suncor.com/financialreporting.
To listen to the convention call discussing Suncor's 2d quarter outcomes, seek advice from suncor.com/webcasts.
FOR extra counsel PLEASE CONTACT: Media inquiries: 403-296-4000 firstname.lastname@example.org
Investor inquiries: 800-558-9071 email@example.com
source: Suncor energy Inc.
� 2015 Marketwire L.P. All rights reserved.