Suncor Energy Reports Record Fourth Quarter Production, TSX Ends Lower in First Week of 2024
The Toronto Stock Exchange’s S&PTSX composite index closed down 0.3% on Wednesday, extending its pullback from a 19-month high reached last week. The index ended the day at 20,818.58, down 53.56 points. The materials sector was the biggest loser, falling 1.25%, while energy was the only bright spot, rising 3.35%. The index’s losses were attributed to a range of economic and geopolitical risks, causing investors to take a more cautious approach in the first week of 2024.
According to Michael Sprung, president at Sprung Investment Management, investors may be reevaluating their positions after an overly enthusiastic fourth quarter. Sprung also pointed out that global wars, political tensions, and high levels of debt are some of the headwinds facing the economy. The Federal Reserve’s December meeting minutes failed to shake off the funk hanging over markets, with the consensus view being for interest rate cuts and a soft economic landing. Sprung cautioned that this outcome only happens some of the time.
The materials group, which includes precious and base metals miners and fertilizer companies, fell 1.25% due to a stronger US dollar putting pressure on gold and copper prices. Consumer discretionary and financials also ended the day lower, down 1.8% and 0.7%, respectively. Energy was the only sector to see gains, rising 3.35%, as US crude oil futures settled 3.3% higher at $72.70 a barrel. Suncor Energy was a standout, climbing 5.9% after announcing record upstream production in the fourth quarter. First Quantum Minerals Ltd. also saw a jump in its shares, rising 11% after reports of a possible bid from Barrick Gold Barrick’s shares were down 2.9%.
Suncor (TSX: SU) (NYSE:SU) provided an operational update for the fourth quarter of 2023, highlighting 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 provided in November 2022. Suncor’s President and CEO, Rich Kruger, expressed pride in the company’s team for delivering on their commitments and achieving their annual production guidance. He also noted that December was Suncor’s best month ever, with upstream production averaging over 900,000 bblsd.
Suncor’s net synthetic crude oil production was 476,000 bblsd, and net non-upgraded bitumen production was 282,000 bblsd, resulting in total Oil Sands production of 758,000 bblsd for the quarter. Production from Exploration & Production was 50,000 bblsd, including production from the ongoing ramp up of Terra Nova. Noteworthy asset performance 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 the major 5-year turnaround at Upgrader 2. Firebag in situ produced 213,000 bblsd for the quarter and achieved a record annual production of 217,000 bblsd in 2023. Fort Hills also had a strong quarter, producing a record 92,000 bblsd in December and a quarterly average of 81,000 bblsd.
The Toronto Stock Exchange’s S&PTSX composite index closed lower for the second straight day, with the materials sector being the biggest loser. Energy was the only sector to see gains, with Suncor Energy reporting record upstream production in the fourth quarter. Suncor also met its annual production guidance, with December being its best month ever.
