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Suncor Energy (NYSE:SU) -0.9% in Wednesday’s trading after reducing FY 2025 capital spending guidance by $400M, which it said reflects strong execution performance and capital discipline, but still narrowly missed expectations for Q2 adjusted earnings.
Suncor (NYSE:SU) said its Q2 net income fell to C$1.13B, or C$0.93/share, from C$1.57B, or C$1.22/share, in the year-earlier quarter, despite setting quarterly records for production of 808,100 bbl/day and refining throughput of 442,300 bbl/day with 95% utilization, as average crude oil prices fell to $63.70/bbl in the period compared with $80.55/bbl in the same period last year.
The company also lowered FY 2025 guidance for full-year capital spending to C$5.7B-C$5.9B from its previous outlook for C$6.1B-C$6.3B.
CEO Rich Kruger said the higher throughputs came as Suncor (SU) continues to push for operational efficiencies, which he said were exemplified by the successful replacement of its base plant coke drums, extending the life of the upgrader by 30 years, that the company announced along with Q2 results.
The project was funded at $1.2B, initially planned at more than 100 days, but it was completed “in an astounding 67 days, a 24-day improvement vs. guidance, $165M or 14% below funding,” Kruger said on the company’s earnings conference call, according to The Canadian Press. “The project was literally executed flawlessly.”
Suncor (SU) also started producing its first ore from its Mildred Lake West mine extension at C$100M below its C$1.5B budget, Kruger said.
The projects are part of the company’s focus on turnaround performance that Kruger flagged as a priority two years ago, which he said is showing results.