Suncor posts quarterly profit on improved crude prices

Suncor Energy posted a second-quarter profit compared to a year ago loss on Wednesday, as crude prices rebounded from pandemic-driven lows.

Like many of its peers, the Calgary-based company has been generating bumper-free cash flow this year thanks to higher oil prices.

The bulk of the company's operations are in northern Alberta's oilsands, and it is aiming to cut carbon emissions by one-third while also boosting production.

"We continue to progress on our ambition to be Canada's leading energy company – focusing on increasing shareholder returns while accelerating our GHG emissions reduction targets," said president and CEO Mark Little in a release. 

Suncor said its total upstream production rose to 699,700 barrels of oil equivalent per day (boepd) during the second quarter, from 655,500 boepd a year earlier.

Suncor said demand for gas and diesel in Canada in the second quarter is estimated to be 13 per cent below the comparable period, pre-pandemic, in 2019, reflecting the continued impact of some COVID-19 restrictions. The company estimated that demand improved to six per cent below the comparable 2019 levels in July, as more restrictions were lifted.

The company, Canada's second-largest oil producer, posted net earnings of $868 million, or 58 cents per share, in the three months that ended June 30, compared with a loss of $614 million, or 40 Canadian cents per share, a year earlier.