NEWS ROOM  
 

:: Company News

 
     
  ARCHIVE  
  :: 2003  
  :: 2004  
     
     
     
     
     
     
     
     
     
 

COMPANY NEWS

 
     
 

Suncor Energy delivers solid financial results in 2004, advances growth strategy

Posted: 02 February 2005

Suncor Energy Inc. announced 2004 earnings of $1.1 billion ($2.40 per common share), up slightly from $1.075 billion ($2.41 per common share) in 2003. Excluding the effects of unrealized foreign exchange gains on the company’s U.S. dollar denominated long-term debt, 2004 net earnings were $1.026 billion compared to $938 million in 2003. Cash flow from operations in 2004 was $2.021 billion compared to $2.079 billion in 2003.

Net earnings in 2004 compared to 2003 reflect higher benchmark crude oil prices, increased production, and non-cash reductions in income tax expense due to year-over-year changes in tax rates and resource allowance deductions. These positive impacts were largely offset by higher Oil Sands Alberta Crown Royalties, higher crude oil hedging losses and the impact of a stronger Canadian dollar. The decrease in cash flow from operations in 2004 compared to 2003 was due to the same factors that impacted net earnings.

"Strong oil and gas production and high commodity prices continued to benefit Suncor in 2004," said Rick George, president and chief executive officer. "At the same time, our efforts in the past year provide a firm foundation for Suncor’s long term growth strategy."

Key highlights in 2004 include:

Suncor’s common shares closed at $42.40 at the end of 2004, an increase of 30% over 2003. Suncor shares outperformed both the S&P/TSX Composite Index and the S&P 500 during the year.

Total production increased to 263,300 barrels of oil equivalent per day (boe/d), from 251,500 boe/d in 2003.

Production at Suncor’s oil sands facility averaged 226,500 barrels per day (bpd), comprising 215,600 bpd from base operations and 10,900 bpd of bitumen from the company’s in-situ operations. Production in 2003 averaged 216,600 bpd; there was a 30-day planned maintenance shutdown and no in-situ production that year.

Cash operating costs from oil sands base operations averaged $11.95 per barrel during 2004, at an average natural gas price of US$6.20 per thousand cubic feet.

Natural gas production increased to 200 million cubic feet per day (mmcf/d) in 2004, compared to 187 mmcf/d in 2003.

Refining margins averaged 8.0 cents per litre (cpl) for Canadian operations and 6.7 cpl for U.S. operations. This compares to 6.5 cpl for Canadian operations and 5.9 cpl for U.S. operations during 2003. Retail gasoline margins averaged 4.4 cpl for Canadian operations and 5.4 cpl for U.S. operations compared to 6.6 cpl for Canadian operations and 5.6 cpl for U.S. operations the year before. Also in 2004, expansion and upgrades of the company’s Sarnia and Denver refineries were launched.

During 2004 work to expand Suncor’s oil sands production capacity to 260,000 bpd continued on schedule and on budget. Suncor also began preliminary site work and vessel construction for projects planned to increase production capacity to 350,000 bpd in 2008.

While Suncor invested $1.8 billion in capital spending primarily to expand operations, maintaining a strong balance sheet remained a priority. At December 31, 2004 , Suncor's net debt (including cash and cash equivalents) was $2.16 billion.

Suncor achieved a company wide Return on Capital Employed of 19.1% (excluding major projects in progress).

Posted by Editor Pipeline Magazine

Information supplied by companies or PR agencies who are responsible for content. Send press releases to info@pipelinedubai.com

 
     

 

© Copyright 2002. Reflex Publishing ME FZ LLC. All rights reserved.
Pipeline Magazine, PO Box 53777, Dubai Media City, Dubai, UAE
Tel: +971 4 3910 830 | Fax: +971 4 390 4570 | E-mail - info@pipelinedubai.com