Suncor (SU) Earnings and Revenues Beat Estimates in Q4
Suncor Energy Inc.SU reported fourth-quarter 2016 operating earnings per share of 29 U.S. cents, which beat the Zacks Consensus Estimate of 21 U.S. cents. The company had posted earnings of 2 U.S. cents per share in the year-ago comparable quarter. Strong upstream production, lower operating costs and record crude throughput led to the outperformance.
Moreover, quarterly revenues of U.S$6.2 billion increased from U.S$4.9 billion in the year-ago quarter. Also, the top line surpassed the Zacks Consensus Estimate of U.S$5.8 billion.
Suncor recorded quarterly operating earnings of C$636 million. The company had incurred an operating loss of C$26 million in the year-ago quarter. Moreover, cash flow from operations increased to C$2,365 million from C$1,294 million in the fourth quarter of 2015.
Total upstream production in the reported quarter was 738,500 barrels of oil equivalent per day (BOE/d), up 26.7% from the prior-year level of 582,900 BOE/d.
Oil Sands operations volume was 433,400 barrels per day (Bbl/d) as against 439,700 Bbl/d in the year-ago quarter.
Production from Syncrude operations was 187,000 Bbl/d in the quarter compared with 30,900 Bbl/d in the year-earlier quarter.
Suncor's Exploration and Production segment (consisting of International and Offshore and Natural Gas segments) produced 118,100 BOE/d. The segment had produced 112,300 BOE/d in the prior-year quarter.
Refinery utilization came in at 93%, flat with the year-ago quarter figure.
Suncor Energy Inc. Price, Consensus and EPS Surprise
The company's refined product sales of 514,800 Bbl/d increased from the prior-year quarter level of 501,200 Bbl/d.
Balance Sheet & Capital Expenditure
As of Dec 31, 2016, Suncor had cash and cash equivalents of C$3 billion and total long-term debt (including current portions) of C$16.2 billion. The total debt-to-capitalization ratio was approximately 28.1%. The company incurred capital expenditure of C$1.6 billion in the quarter.
Suncor Energy boosted its quarterly dividend to C$32 cents per share on its common shares from the previous dividend of C$29 cents per share, thereby reflecting the company's commitment and ability to generate steady cash flow and return cash to shareholders in poor market conditions. This dividend is payable on Mar 24, to shareholders on record at the close of business on Mar 3, 2017.
Suncor's 2017 capital spending projection is C$4.8-C$5.2 billion.
The company's estimated total production in 2017 in the range of 680,000-720,000 BOE/d. Suncor projected Oil Sands sales is in the band of 420,000-450,000 Bbl/d in 2017.
Refinery throughput is expected in the range of 425,000-445,000Bbl/d. Refined products sales are anticipated in the 515,000-545,000Bbl/d band.
Suncor currently carries a Zacks Rank #3 (Hold), implying that it will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include W&T Offshore, Inc. WTI , McDermott International, Inc. MDR and Dominion Midstream Partners, LP DM . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
In the last four quarters, W&T Offshore posted an average positive earnings surprise of 31.50%.
In the last quarter, McDermott posted a positive earnings surprise of 250.00%.
In the last quarter, Dominion Midstream Partners posted a positive earnings surprise of 8.24%.
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