Suncor Energy Inc , Canada's second-largest energy producer, does not need to reduce crude output as some of its peers are doing to cope with low prices, Chief Executive Steve Williams said on Thursday.
Suncor, which has dedicated pipeline space for its crude as well as refineries in Canada, is mostly insulated from the impact of growing price discounts that U.S. refineries apply to Canadian oil, which have hurt rival producers, Williams said. Those discounts are largely attributed to pipeline constraints. "The higher-cost producers are having to pull back because they're not making any margin on their last barrel. We're not in that circumstance," Williams said on a call with analysts in response to a question of whether Suncor would cut production. "If we were, we wouldn't hesitate to pull throughput back." Rival Cenovus Energy Inc said on Wednesday it was limiting output due to severe discounts. Late on Wednesday, Suncor reported improved third-quarter profit on higher oil prices and increased refinery margins, along with increased sales and output. Suncor shares rose 0.5 percent in Toronto trading to C$44.40. (Reporting by Rod Nickel in Calgary, Alberta; Editing by Bernadette Baum)