Suncor posts third-quarter net loss on FX, low oil prices bite

Wed Oct 28, 2015 9:06pm EDT
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By Nia Williams

CALGARY, Alberta (Reuters) - Suncor Energy Inc (SU.TO: Quote), Canada's largest oil and gas company, on Wednesday reported a third-quarter loss due to unrealized foreign exchange losses and posted lower operating profits as the slump in global crude prices dragged on.

The company reported a net loss of C$376 million, or 26 Canadian cents per share, as a result of an after-tax unrealized FX loss of C$786 million ($595.91 million) on the revaluation of U.S. dollar denominated debt.

In the year-prior quarter net earnings were C$919 million, or 63 Canadian cents per share.

Suncor's operating profit, which excludes one-time items, fell to C$410 million, or 28 Canadian cents per share, in the third quarter, from C$1.306 billion, or 89 Canadian cents per share, in the year-ago period.

Suncor produced a total of 566,100 barrels of oil equivalent per day, up from 519,300 in the third quarter of 2014.

The Calgary-based company's operations are mainly based in the oil sands of northern Alberta, where thousands of oil and gas worker layoffs and producers slashing capital spending have helped drive down production costs over the last year.

Suncor produced 430,300 bpd from the oil sands in the third quarter of 2015, compared to 411,700 bpd a year earlier and cash operating costs per barrel for oil sands operations dropped to C$27 a barrel in the third quarter of 2015, down from C$31.10 a barrel.

Chief Executive Steve Williams said those were the lowest per barrel cash costs in eight years, a plus in the "current challenging crude oil pricing environment."   Continued...