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

  • Broker, agent who worked with subsidiary of Home Capital disciplined

    Economic CBC News
    An Ontario regulator says it has imposed disciplinary actions against a mortgage broker and agent who worked with Home Trust Co., a subsidiary of Home Capital Group, over their handling of mortgages. The Financial Services Commission of Ontario (FSCO) says it conducted a review of 45 mortgage brokers and agents that Home Capital cut ties with after they were accused of falsifying income information several years ago. Source
  • Calgary man on lam in Mexico sentenced to 3 years in $27M mortgage fraud

    Economic CTV News
    CALGARY -- A Calgary man who was arrested after being on the lam for two years in Mexico for his part in a $27 million mortgage fraud has been sentenced to three years in prison. Source
  • Nortel Canada to start paying billions to creditors

    Economic CBC News
    Nortel Canada's long-suffering creditors will finally begin to receive their share of more than US$4 billion to be distributed under a plan approved in January, eight years after the former technology titan began bankruptcy proceedings. Nortel Networks Corp. Source
  • Nortel Canada to start paying billions to creditors; first instalment by July

    Economic CTV News
    TORONTO - Nortel Canada's long-suffering creditors will finally begin to receive their share of more than US$4 billion to be distributed under a plan approved in January, eight years after the former technology titan began bankruptcy proceedings. Source
  • Que. construction strike: Day 3 kicks off with little to show at bargaining table

    Economic CTV News
    MONTREAL -- There is little progress to report at the table as Quebec's construction strike enters Day 3. Eric Cote, a spokesman for one association of employers, says negotiations resumed late Thursday and that representatives for his group emerged early today suggesting they were a waste of time. Source
  • Ford's ex-CEO leaves company with $51.1M US

    Economic CBC News
    Ford's former CEO Mark Fields is leaving the company with an estimated $51.1 million US in cash, stock awards and pension benefits. Fields, 56, retired earlier this week after three years as CEO. Ford made record profits during his tenure but its stock price dropped nearly 40 per cent on investors' concerns about the company's future. Source
  • Ford's ex-CEO leaves company with US$51.1 million

    Economic CTV News
    DETROIT -- Ford's former CEO Mark Fields is leaving the company with an estimated US$51.1 million in cash, stock awards and pension benefits. Fields, 56, retired earlier this week after three years as CEO. Source
  • Rising program expenses propel fed 2016-17 deficit to $21.8B: preliminary estimate

    Economic CBC News
    A preliminary analysis of the federal books suggests the government ran a 2016-17 deficit of $21.8 billion to put the Liberals close to their projection for the fiscal year. The Trudeau government's spring budget projected a shortfall of $23 billion for the fiscal year, without counting a $3-billion risk adjustment added to the accounting framework. Source
  • Feds run $21.8B deficit in 16-17, putting them close to target: early analysis

    Economic CBC News
    A preliminary analysis of the federal books suggests the government ran a 2016-17 deficit of $21.8 billion to put the Liberals close to their projection for the fiscal year. The Trudeau government's spring budget projected a shortfall of $23 billion for the fiscal year, without counting a $3-billion risk adjustment added to the accounting framework. Source
  • U.S. GDP reading for start of year revised upward, but still weak

    Economic CBC News
    The U.S. economy started 2017 out with a whimper, but it wasn't quite as weak as first thought. The government revised up its January-March growth reading to a rate of 1.2 per cent — better than an earlier estimate of 0.7 per cent but well below President Donald Trump's ambitious growth targets. Source