Suncor Energy Reports Strong Fourth Quarter Operational Performance
The Toronto Stock Exchange (TSX) ended down 0.3% on Wednesday, extending its pullback from a 19-month high reached last week. The decline was driven by losses in the materials and consumer discretionary sectors, as well as a cautious approach from investors due to a range of economic and geopolitical risks.
According to Michael Sprung, president at Sprung Investment Management, investors may be reevaluating their positions and taking a more cautious stance after an overly enthusiastic fourth quarter. He also noted that global tensions and high levels of debt are some of the headwinds facing the economy.
The materials sector, which includes precious and base metals miners, fell 1.25% as a stronger US dollar put pressure on gold and copper prices. The consumer discretionary sector also lost 1.8%, while heavily-weighted financials ended 0.7% lower.
On a positive note, energy was a bright spot, rising 3.35% as US crude oil futures settled 3.3% higher at $72.70 a barrel. This was driven by Suncor Energy’s announcement of record upstream production in the fourth quarter.
Suncor Energy (TSX: SU) (NYSE:SU) provided an operational update for the fourth quarter of 2023, reporting upstream production of 808,000 barrels per day (bblsd), the second highest quarter in the company’s history. This strong performance resulted in an annual average upstream production of 746,000 bblsd, in line with Suncor’s corporate guidance.
According to Rich Kruger, President and CEO of Suncor, the company’s team delivered on their commitments, with December being their best month ever with upstream production averaging over 900,000 bblsd. He also emphasized the company’s focus on meeting their commitments.
Noteworthy asset performance for Suncor includes Oil Sands Operations producing 453,000 bblsd for the quarter and 431,000 bblsd for the full year of 2023. The Base Plant upgrader achieved a full year utilization of 90%, including the impact of a major 5-year turnaround. Firebag in situ also achieved record annual production of 217,000 bblsd in 2023.
