July 28, 2011 / 8:38 AM / 7 years ago

UPDATE 2-Suncor profit up 4 pct, no plans for more asset sales

* Q2 net C$562 million or 36 Canadian cents per share

* Operating income up 17 percent to C$980 million, or 62 Canadian cents/shr

* Q2 cash flow rose 12 pct

* Sees FY production of 520,000 - 570,000 boe/d

* Capex outlook remains unchanged (Adds outlook details in paras 3-5)

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 ridding itself of surplus non-core assets, aiming to deploy more money on its capital expenditure program. So far the company has sold off holdings in Canada, the United States and the Caribbean.

“We are now guiding to total production for the year as opposed to production before and after targeted divestitures,” Suncor said.

The company expects full-year production of between 520,000 and 570,000 barrels of oil equivalent per day (boe/d).

Suncor also said its full-year outlook for total capital expenditure remains unchanged.

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

Analysts, on average, 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. ($1 = 0.948 Canadian Dollars) (Reporting by Sakthi Prasad. Editing by Jane Merriman)

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