Oilsands giant Suncor posts $2B Q4 net loss

CALGARY -- Suncor Energy, Canada's biggest oilsands player, has posted a net loss of $2 billion for the final three months of 2015 as it was walloped by the steep drop in crude prices.

See Full Article

In addition to the oil price collapse, Suncor's (TSX:SU) bottom line was dragged down by nearly $1.6 billion in impairment charges and a $382 million foreign exchange loss related to its U.S. dollar-denominated debt.

A year earlier, it posted a net profit of $84 million.

Stripped of unusual items, Suncor's operating loss amounted to $26 million, compared with profits of $386 million a year earlier.

Company-wide output grew to 582,900 barrels of oil equivalent a day during the fourth-quarter from 557,600 barrels during the prior year.

Suncor has ratcheted down its spending plans for 2016, with a capital budget of between $6 billion and $6.5 billion compared with the $6.7 billion to $7.3 billion range it set in November.

The company is assuming a U.S. benchmark crude price of US$39 a barrel for 2016.

In October, Suncor launched a hostile bid for Canadian Oil Sands (TSX:COS), whose sole asset is a 37 per cent stake in the Syncrude oilsands mine.

Suncor has a 12 per cent interest and has said it can improve operations at the glitch-prone mine if it has a larger share of it.

After months of waging a bitter takeover battle, the two sides came to an agreement in January.

Suncor bumped up its offer to 0.28 of one of its own shares for each COS share, versus 0.25 previously. Shareholders have until Friday to accept the deal.

"We are pleased that the Board of COS is supporting our offer," said CEO Steve Williams.

"We believe that, working with the operator, we can drive real improvements in Syncrude's performance with a larger ownership interest, creating value for our shareholders."



Advertisements

Latest Economic News

  • Why do you need a pet insurance, right here, right now

    Economic 24news
    Many Canadians would consider their pets as a part of their immediate, granular, family. Although some professionals think it’s not healthy, that’s the way life is in the twenty first century; There is a steep decline in the birth rate globally, with Japan leading the pack, and pets are filling in the void.
  • 'Archaic' liquor laws in B.C. hurt consumers, whisky distributor says

    Economic CTV News
    VANCOUVER -- An Alberta-based whisky distributor says "archaic" liquor policies in British Columbia are limiting the range of products consumers can access. Robert Carpenter with the Scotch Malt Whisky Society says B.C. bars have long skirted rules that prevent them from buying unique products at private liquor stores that aren't carried at government stores. Source
  • With a deep tech talent pool, Toronto could hit Amazon's 'sweet spot' with bid for new HQ

    Economic CBC News
    Toronto faces stiff competition in its bid to court Amazon, but some Canadian tech experts agree that among the 20 cities short-listed as potential locations for the company's second headquarters, Toronto might just hit "the sweet spot. Source
  • HBC's Lord & Taylor to lay off 200 in U.S. operations move

    Economic CTV News
    WILKES-BARRE, Pa. -- Lord & Taylor has announced that it will be laying off about 200 people at a Pennsylvania distribution centre as it moves some operations to a new location about 80 kilometres away. Source
  • Four things to watch for in the Canadian business world in the coming week

    Economic CTV News
    TORONTO -- Four things to watch for in the Canadian business world in the coming week: Time to have "the talk"? Alimentation Couche-Tard's hosts its first-ever investor day on Monday. The large convenience store chain, which operates as Circle K outside Quebec, recently said it hasn't given up hope of selling cannabis as some Western Canadian provinces turn to the private sector for over-the-counter sales. Source
  • Canadian tech CEOs disappointed Amazon won't be coming to their cities

    Economic CTV News
    CALGARY -- Tech sector entrepreneurs whose Canadian cities were snubbed by Amazon in its search for a second corporate campus say they are disappointed, despite fears they would have seen increased competition for scarce skilled talent. Source
  • Rogers sales tactics and the 'Tide pod challenge': CBC's Marketplace consumer cheat sheet

    Economic CBC News
    Miss something this week? Don't panic. CBC's Marketplace rounds up the consumer and health news you need. Want this in your inbox? Get the Marketplace newsletter every Friday. Rogers employees reveal sales pressures A number of Rogers employees have come forward about how they are coached to upsell customers. Source
  • Macron says U.K. can't keep full access to E.U. post-Brexit

    Economic CTV News
    LONDON -- French President Emmanuel Macron has suggested that Britain is likely to negotiate a unique relationship with the European Union before it leaves the bloc next year, while stressing that any agreement must be consistent with EU rules. Source
  • Retrofitting suburbia: Old shopping malls can be saved by their parking lots

    Economic CBC News
    Aging shopping centres, built decades ago as beacons of fashion and free parking on the suburban fringe, are gradually becoming relics on a sea of inner-city asphalt. But rather than tinker at the margins to squeeze the last nickels out of old stores, some retailers are doing something dramatic with their biggest asset: land. Source
  • Want to understand the problems with minimum wage? Talk to people who earn it

    Economic CBC News
    There are more than a million Canadians who work minimum wage jobs — they make up 8 per cent of the country's salaried employees. The hourly rate they earn varies across the country, from a low of $10.85 in Nova Scotia, to Alberta where the minimum wage is set to increase to $15 in October 2018. Source