Suncor Energy on Tuesday beat second-quarter adjusted profit estimates as higher crude price realizations and stronger refining margins offset weaker upstream production.
Higher oil prices and fuel margins lifted earnings across Canada’s oil patch as conflict in the Middle East supported crude markets.
Calgary, Alberta-based Suncor said oil sands adjusted operating earnings rose to C$2.592 billion from C$926 million a year ago, while refining and marketing adjusted operating earnings increased to C$2.068 billion from C$404 million.
Canadian oil and gas producers have steadily raised output while keeping costs in check, helped by years of investment.
Peer Imperial Oil more than doubled its second-quarter profit and beat analysts’ estimates, also benefiting from higher crude prices.
Downstream strength helped offset weaker overall production.
Suncor’s refinery crude oil throughput rose to a second-quarter record of 470,600 barrels per day from 442,300 barrels per day, while its refinery utilization increased to 92% from 87%.
Refined product sales also hit a quarterly record of 654,800 barrels per day (bpd). Total upstream production fell to 760,900 bpd from 808,100 bpd, partly due to a planned turnaround at Firebag.
Suncor reaffirmed its 2026 upstream production and refinery throughput forecast and maintained its capital spending forecast of C$5.6 billion to C$5.8 billion.
The company said it plans to raise its monthly share repurchases to C$500 million from C$350 million beginning in August, projecting total 2026 buybacks of C$4.7 billion.
Suncor said in March that about 60% of its oil sands production would come from in situ, or steam-assisted, extraction by 2040, up from about 30% currently, as it shifts away from higher-cost mining.
The company posted adjusted operating earnings of C$3.23 per share for the quarter ended June 30, above analysts’ average estimate of C$3.07, according to data compiled by LSEG.
(Reporting by Khusbu Jena in Bengaluru; Editing by Shreya Biswas)