Canada’s Suncor Energy beat analysts’ estimates for fourth-quarter profit on Wednesday, as the integrated oil and gas firm benefited from higher oil production and strong refined product sales volumes.
The country’s oil producers benefited after the Trans Mountain Pipeline expansion project began commercial operations last year, as it increased their transportation capacity and opened up market access to refineries in Asia and the U.S. West Coast.
The expanded pipeline has nearly tripled the flow of crude from Alberta’s oil sands to British Columbia on the Pacific Coast to 890,000 barrels per day.
Calgary, Alberta-based Suncor’s upstream production rose to 875,000 bpd during the fourth quarter from 808,000 bpd a year ago.
The company said its refinery throughput rose to 486,000 bpd during the quarter, while its refinery utilization more than doubled. Suncor also achieved record refined product sales, up 6% at 613,300 bpd.
The Canadian crude industry is now bracing for the impact from U.S President Donald Trump’s planned imposition of tariffs on the country. A major part of Canada’s crude exports go to the U.S.
Suncor reaffirmed its forecast of higher oil and gas production as well as lower spending in 2025.
On an adjusted basis, the company earned C$1.25 ($0.8733) per share, compared with the average analyst estimate of C$1.10 per share, according to data compiled by LSEG.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Shilpi Majumdar and Shounak Dasgupta)