July 28, 2011 / 7:33 AM / 6 years ago

UPDATE 1-Suncor profit up 4 pct, no plans for more asset sales

(Adds detail)

* Q2 profit up 4 pct

* Q2 production falls 27 pct

* Q2 cash flow rose 12 pct

* Says annual production outlook remains unchanged

BANGALORE, July 28 (Reuters) - Suncor Energy Inc , Canada’s biggest oil and gas producer, posted a slim 4 percent rise in second-quarter profit and said it did not anticipate entering into further agreements to sell off assets in 2011.

Ever since its purchase of Petro-Canada two years ago, Suncor has been divesting non-core assets to reduce debts and to increase its capital expenditure.

Suncor posted net income of C$562 million ($592.8 million) or 36 Canadian cents per share, up from C$540 million, or 35 Canadian cents, in the second quarter of 2010.

Operating income, which excludes most unusual items, rose 17 percent to C$980 million, or 62 Canadian cents, from C$839 million, or 54 Canadian cents.

Analysts, on avearge, were expecting earnings of 68 Canadian cents, according to Thomson Reuters I/B/E/S.

U.S. crude oil prices CLc1 averaged $103.49 a barrel, 32 percent higher than the year-prior quarter, while oil from the company’s international operations and its oil sands projects commanded even higher prices.

Suncor’s cash flow, a key indicator of its ability to pay for new projects, rose 12 percent to C$1.982 billion, or C$1.26 per share.

The company’s oil and gas production fell 27 percent to 460,000 barrels of oil equivalent per day from 633,900 boed.

That included 243,400 barrels per day from its oil sands operations, down 18 percent from a year ago.

Suncor, however, said its annual production outlook remained unchanged from targets released in early May. ($1 = 0.948 Canadian Dollars) (Reporting by Sakthi Prasad. Editing by Jane Merriman)

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