Suncor Energy Inc. has successfully met its debt target by implementing operational efficiencies, leading to a commitment to distribute 100% of excess funds to shareholders.
The company has focused on enhancing efficiency across its network, prioritizing incremental gains over costly expansion projects. This strategic shift has resulted in significant achievements, including record-breaking upstream production of 829,000 barrels per day, highest-ever refining throughput of 488,000 barrels per day, and refined sales reaching 612,000 barrels per day during the third quarter.
CEO Rich Kruger highlighted these accomplishments during an earnings call, emphasizing the consecutive quarterly records set by Suncor. The company’s efforts to address bottlenecks and optimize costs have involved various initiatives, such as investing in plant capacity expansion and production enhancements at Firebag.
Moreover, Suncor’s commitment to efficiency extends to all aspects of its operations, including material sourcing for totes used in additive reception, as noted by Executive Vice-President Dave Oldreive.
The improved production performance contributed to a third-quarter profit of $2.02 billion, a significant increase from the previous year. Additionally, Suncor successfully reduced its debt by over $1.4 billion, achieving its net debt target of $8 billion ahead of projections.
As a result of reaching this milestone, Suncor has increased its shareholder payout to 100% of excess funds, doubling the initial allocation at the beginning of the year. The company returned $1.5 billion to shareholders through dividends and share buybacks, alongside a five percent dividend raise to 57 cents per share.
Looking ahead, Suncor aims to maintain its performance into the fourth quarter and beyond, with a focus on sustaining cost efficiency, asset reliability, and overall operational improvements. The company’s goal for 2025 is to preserve the gains achieved in 2024 and ensure continued progress in the years to come.
