Suncor Energy reports fourth quarter 2024 results

Press Release

Suncor Energy reports fourth quarter 2024 results

Unless otherwise noted, all financial figures are unaudited, presented in Canadian dollars (Cdn$), and derived from the company’s condensed consolidated financial statements which are based on Canadian generally accepted accounting principles (GAAP), specifically International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), and are prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. Production volumes are presented on a working-interest basis, before royalties, except for production values from the company’s Libya operations, which are presented on an economic basis. Certain financial measures referred to in this news release (adjusted funds from operations, adjusted operating earnings, free funds flow and net debt) are not prescribed by Canadian generally accepted accounting principles (GAAP). See the Non-GAAP Financial Measures section of this news release. References to Oil Sands operations exclude Suncor Energy Inc.’s interest in Fort Hills and Syncrude.

Calgary, Alberta (February 5, 2025)

Fourth Quarter Highlights

• Generated $3.5 billion in adjusted funds from operations and $1.9 billion in free funds flow.
• Returned $1.7 billion to shareholders, with $1 billion in share repurchases and $700 million in dividends.
• Record upstream production of 875,000 barrels per day (bbls/d) with upgrader utilization of 103%.
• Near record refining throughput of 486,200 bbls/d with refinery utilization of 104%.
• Record refined product sales of 613,300 bbls/d, exceeding the previous record set in the third quarter.
• Shifted to 100% return of excess funds to shareholders via share repurchases in the fourth quarter.

“Suncor’s fourth quarter was about finishing an exceptional year strong and building momentum for 2025,” said Rich Kruger, Suncor’s President and Chief Executive Officer. “Performance records were set across the company in both the quarter and for the full year, including records in upstream production, refining throughput, refined product sales and asset utilization. In addition, personnel safety and operational integrity were at or near best-ever annual performance levels. Suncor’s people, company-wide, delivered by working in a team-based, results-oriented manner. Looking ahead in 2025, we remain committed to continuing to deliver high performance results with safe, reliable and cost-effective operations to achieve our free cash flow targets and create superior shareholder value.”

Annual 2024 Highlights

• Increased normalized free funds flow by $2.3 billion, relative to 2023.
• Generated $13.8 billion in adjusted funds from operations and $7.4 billion in free funds flow.
• Returned $5.7 billion to shareholders, with $2.9 billion in share repurchases and $2.8 billion in dividends.
• Record upstream production of 827,600 bbls/d with record upgrader utilization of 98%.
• Record refining throughput of 465,000 bbls/d with refinery utilization of 100%.
• Record refined product sales of 600,400 bbls/d, with all four quarters in 2024 the highest-ever.
• Total operating, selling and general expenses down more than $300 million versus 2023 despite significantly higher volumes.

(1) Presented on a basic per share basis.

(2) Non-GAAP financial measures or contains non-GAAP financial measures. See the Non-GAAP Financial Measures section of this news release.
(3) Calculated as the total cost of share repurchases divided by the weighted average number of shares outstanding for the applicable period.
(4) Includes dividends paid on common shares and repurchases of common shares.
(5) Beginning in the second quarter of 2024, the company revised the definition of net debt to exclude lease liabilities to better align with how management and industry monitor capital structure. Prior period comparatives have been restated to reflect this change.

• Suncor’s adjusted operating earnings were $1.566 billion ($1.25 per common share) in the fourth quarter of 2024, compared to $1.635 billion ($1.26 per common share) in the prior year quarter, with the decrease primarily due to lower refined product realizations, increased royalties due to higher heavy crude price realizations, and increased depreciation, depletion and amortization (DD&A) expense, partially offset by higher sales volumes.
• Net earnings were $818 million ($0.65 per common share) in the fourth quarter of 2024, compared to $2.820 billion ($2.18 per common share) in the prior year quarter. In addition to the factors impacting adjusted operating earnings, net earnings for the fourth quarter of 2024 and the prior year quarter were impacted by the reconciling items shown in the table above.
• Adjusted funds from operations were $3.493 billion ($2.78 per common share) in the fourth quarter of 2024, compared to $4.034 billion ($3.12 per common share) in the prior year quarter, and were primarily influenced by the same factors impacting adjusted operating earnings, as well as a larger tax benefit relating to the acquisition of TotalEnergies EP Canada Ltd. in the prior year quarter compared to the current quarter.
• Cash flow provided by operating activities, which includes changes in non-cash working capital, increased to $5.083 billion ($4.05 per common share) in the fourth quarter of 2024, compared to $4.318 billion ($3.34 per common share) in the prior year quarter.
• Operating, selling and general (OS&G) expenses in the fourth quarter of 2024 were comparable to the prior year quarter, primarily due to decreased operations and maintenance costs and lower commodity costs being offset by the company’s increased working interest in Fort Hills and increased share-based compensation.
• Total Oil Sands bitumen production increased to a record 951,500 bbls/d in the fourth quarter of 2024, compared to 866,200 bbls/d in the prior year quarter, primarily due to record production at Firebag, the company’s increased working interest at Fort Hills and strong mining performance.
• The company’s net synthetic crude oil (SCO) production increased to a fourth quarter record of 543,600 bbls/d, compared to 475,700 bbls/d in the prior year quarter as the company leveraged its unparalleled regional integration and high reliability, and included record quarterly upgrader utilization of 105% at Syncrude and fourth quarter record upgrader utilization of 102% at Oil Sands Base, compared to 101% and 83%, respectively, in the prior year quarter. The increase was also due to fewer planned maintenance activities at Oil Sands Base in the current quarter compared to the prior year quarter.
• Non-upgraded bitumen production decreased to 273,900 bbls/d in the fourth quarter of 2024, compared to 281,700 bbls/d in the prior year quarter, due to higher upgrader availability more than offsetting increased bitumen production. Exploration and Production (E&P) production increased to 57,500 bbls/d in the fourth quarter of
• 2024, compared to 50,700 bbls/d in the prior year quarter, primarily due to the addition of production from Terra Nova, and increased production at Hibernia, partially offset by the absence of production from White Rose due to the asset life extension project.
• Strong operating performance resulted in utilization rates above 100% at all refineries for the second consecutive quarter. Overall utilization was 104% and throughput was 486,200 bbls/d, compared to 98% and 455,900 bbls/d, respectively, in the prior year quarter.
• Achieved record refined product sales of 613,300 bbls/d in the fourth quarter of 2024, compared to 575,500 bbls/d in the prior year quarter, with the increase primarily due to higher refinery throughput and the benefit of the company’s continued investment in its extensive retail and broader sales network.

Corporate and Strategy Updates

• Normalized free funds flow growth update. When adjusted for a US$75 WTI Business Environment, 2024 normalized free funds flow was $7.373 billion, $2.3 billion higher than 2023 normalized free funds flow, demonstrating significant progress towards the three-year growth target of $3.3 billion.
• New cogeneration facility begins operating. The company began operating a cogeneration facility to replace the coke-fired boilers at Oil Sands Base Plant, which provides the steam generation required for extraction and upgrading activities at a lower cost. The cogeneration facility also generates lower-carbon-intensive power for Alberta’s power grid.
• ⦁ Quarterly dividend increase. Suncor increased its quarterly dividend by approximately 5% to $0.57 per share.
• Debt reduction of $1.1 billion. Suncor repaid approximately $1.1 billion aggregate principal amount of certain series of the company’s outstanding notes, capturing significant economic value and reducing future interest obligations.
• Increase in shareholder capital allocation. With achievement of its $8 billion net debt target, Suncor has moved to 100% return of excess funds to shareholders via share repurchases.

Corporate Guidance Updates

There have been no changes to the 2025 corporate guidance ranges previously issued on December 12, 2024.

For further details and advisories regarding Suncor’s 2025 corporate guidance, see www.suncor.com/guidance.

Read More:

IBF4