Suncor posts record Q2 production but lower oil prices still dent bottom line

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Suncor Energy Inc. managed to squeeze more oil out of its operations in the second quarter while also completing multiple major projects, but its earnings couldn’t escape lower global oil prices.

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The oilsands producer posted a profit of $1.13 billion in the quarter ending June 30, down from $1.57 billion last year, as the price of crude oil at Cushing, Okla., was US$63.70 per barrel in the period compared with US$80.55 last year.

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The lower profits were despite quarterly records for production of 808,100 barrels per day, and for refining throughput of 442,300 barrels per day.

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Higher throughputs came as the company under chief executive Rich Kruger continues to push for operational efficiencies and safety improvements, exemplified, he said, by the successful replacement of its base plant coke drums that it announced along with results late Tuesday.

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“We funded it at $1.2 billion, initially scoped at more than 100 days,” said Kruger on an earnings call Wednesday.

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“Well, Ryan Jackson and his team completed it in an astounding 67 days, a 24-day improvement versus guidance, $165 million or 14 per cent below funding. The project was literally executed flawlessly.”

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He said the company did extensive planning for the project that will extend the life of the upgrader by 30 years, including building full-scale models to practice the most critical steps.

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In the quarter, Suncor also started producing its first ore from its Mildred Lake West mine extension, an oilsands lease the size of Manhattan, at $100 million below its $1.5 billion budget, he said.

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The projects are part of the company’s focus on turnaround performance that Kruger flagged as a priority two years ago, which he says is showing results.

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“Today we’re exceeding the targets we set, but it’s not just luck and it’s not just ‘Well, try harder.’ It has been a very systematic comprehensive approach to achieving best-in-class performance.”

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The performance has helped the company shave around $400 million from its expected spending this year to between $5.7 billion and $5.9 billion.

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Kruger, however, made no mention of efforts or achievements on reducing carbon emissions as part of its drive to operational excellence.

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The company’s adjusted operating earnings worked out to $873 million, down from $1.63 billion in the same quarter last year.

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Adjusted earnings were 71 cents per share, down from $1.27 last year, while the mean analyst estimate was for 69 cents per share, according to LSEG Data & Analytics.

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Gross revenues totalled $12.75 billion, down from $14.01 billion in the same quarter last year.

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Kruger said the company also continues to push ahead with truck automation as part of its push for safety and cost savings. Suncor had 120 self-driving trucks as of May, up from 20 the year before, while it’s aiming to have 150 or more in operation by the end of the year, he said.

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This report by The Canadian Press was first published Aug. 6, 2025.

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Companies in this story: (TSX:SU)

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