Suncor Energy ((TSE:SU)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Suncor Energy’s latest earnings call revealed a record-breaking performance in 2024, signaling a triumphant year marked by significant advancements in safety, production, and financial metrics. Despite this success, the company remains vigilant about the challenges posed by a volatile business environment and anticipates increased maintenance activities in 2025.
Record Safety Performance
Suncor Energy achieved its safest year ever in 2024, reducing lost time injuries by 30% year-on-year and by 60% over the last two years. Recordable injuries also saw a significant decrease of 16% year-on-year or 30% over the last two years. This milestone underscores Suncor’s commitment to safety and operational excellence.
Upstream Production Milestone
The company reached a remarkable upstream production milestone with full-year production hitting 828,000 barrels a day, marking the highest in the company’s history. This represents a 6.5% increase from the previous best and an impressive 11% rise from 2023.
Refining and Utilization Success
Suncor’s refining operations also saw significant success, with full-year refining throughput reaching 465,000 barrels a day, the highest ever recorded. This achievement reflects a 5.5% increase from the previous best and a 10.5% increase from 2023, highlighting the company’s efficiency gains in refining and utilization.
Financial Achievements
Financially, Suncor generated $7.4 billion in free funds flow while maintaining its net debt at the $8 billion target. The company returned $5.7 billion to shareholders through dividends and buybacks, underscoring its strategic focus on enhancing shareholder value.
Operating Cost Reduction
Despite increased production and throughput, Suncor successfully reduced its total operating, selling, and general expenses by $324 million year-on-year. This achievement demonstrates the company’s strong cost management capabilities.
Challenging Business Environment
Suncor faced challenges in the form of a $1.5 billion decrease in free funds flow due to unfavorable downstream cracks and differentials. This highlights the external pressures impacting the company’s financial outcomes.
Maintenance and Turnaround Impacts
Looking ahead to 2025, Suncor anticipates a heavy maintenance year with significant turnarounds planned at the base plant and refineries, which could pose risks to operational continuity.
Forward-Looking Guidance
For 2025, Suncor has projected upstream production between 810,000 to 840,000 barrels per day and a refining utilization rate of 93% to 97%. Capital expenditures are expected to be between $6.1 billion and $6.3 billion. The company aims to maintain its operational momentum from 2024, with a focus on cost management and further growth initiatives.
In summary, Suncor Energy’s earnings call reflects a year of record-breaking achievements in 2024, driven by strong safety performance, record production, and financial gains. Despite the challenges posed by a volatile business environment, the company remains focused on maintaining its operational momentum and delivering shareholder value in 2025.
