Suncor Energy beats first-quarter profit estimates, hits record production

By Nia Williams

(Reuters) -Canada's second-largest oil producer Suncor Energy beat first-quarter profit estimates on Tuesday, boosted by strong demand for refined products and record oil sands production.

The Calgary-based company said total upstream production was 835,300 barrels per day (bpd), a record for the first quarter and up 12.6% from a year earlier, while oil sands output hit an all-time high of 785,000 bpd.

The production records suggest Suncor is making progress in improving safety and performance in its oil sands business after a string of fatalities and operational setbacks hurt the company's share price and unnerved investors in recent years.

Suncor appointed former Exxon Mobil executive Rich Kruger as CEO last year, after previous CEO Mark Little resigned in 2022.

"Our strong 2024 first quarter performance continued to build on the momentum established in the second half of 2023," Kruger said in a statement.

The company said it achieved its highest-ever first-quarter refining throughput at 455,300 bpd, up 23.8% from a year ago. Refinery utilization was at 98% in same period, compared with 79% from a year earlier.

Global demand for refined products remained high in the quarter as outages at Russian refineries following Ukrainian attacks and heavy refinery turnarounds tightened fuel supplies.

Suncor reported adjusted operating earnings of C$1.41 per share for the quarter ended March 31, compared with analysts' average estimate of C$1.29, according to LSEG data.

(Reporting by Nia Williams in British Columbia; Additional reporting by Tanay Dhumal in Bengaluru; Editing by Tasim Zahid and Deepa Babington)