Suncor (TSX:SU) hikes dividend by 100%: An oil stock to buy & hold?

Highlights

  • Suncor Energy Inc (TSX:SU) released its earnings reports Q3 2021 on Wednesday, October 27.
  • The oil stock has recorded a stock price growth of nearly 91 per cent in the past one year.
  • The C$ 41.8-million market cap company held a price-to-earnings ratio of 29.3 on Wednesday.

Stocks of Suncor Energy Inc (TSX:SU) slid by nearly four per cent on Wednesday, October 27, after the oil and gas company released its earnings reports Q3 2021.

Founded in 1917, Suncor Energy is said to be one of the top integrated energy players in the country, based in Calgary, Alberta, and operating in Canada, the US and the North Sea.

Let us take a closer peek at this oil and gas giant’s latest financials and stock performance.

Suncor Energy Inc (TSX:SU) Q3 2021 earnings report

Suncor Energy’s funds from operations surged from C$ 1.166 billion (or C$ 0.76 per common share) in the third quarter of 2020 to that of C$ 2.641 billion (or C$ 1.79 per common share) in Q3 2021.

Its cash flow from operating activities amounted to C$ 4.718 billion (or C$ 3.19 per common share) in the latest quarter, which was notably up from that of C$ 1.245 billion (or C$ 0.82 per common share) in the same quarter a year ago.

The energy player’s operating earnings also rose to C$ 1.043 billion (or C$ 0.71 per common share) in Q3 2021, as against an operating loss of C$ 338 million (or C$ 0.22 per common share) in Q3 2020.

Its net earnings, on the other hand, amounted to C$ 877 million (or C$ 0.59 per common share) in Q3 2021, as compared to a net loss of C$ 12 million (or C$ 0.01 per common share) in Q3 2020.

Suncor (TSX:SU) Q3 2021 results

On the production front, Suncor Energy saw its upstream production total at 698,600 barrels of oil equivalent per day (boe/d) in Q3 2021, up from that of 616,200 boe/d in Q3 2020. The company said that this surge in production was caused by the “continued strong performance” from its In Situ assets and improved manufacture volumes at Syncrude.

The Canadian oil and gas producer also took up the role of operating the Syncrude asset during the third quarter.

Also read: Rogers (RCI) stock plummets amid family drama: What investors must know 

Suncor Energy hikes dividend

After having snipped its dividends last year in the wake of the COVID-19 pandemic, Suncor Energy said on Wednesday that subsequent to Q3 2021, the company will be paying its shareholders a quarterly dividend of C$ 0.42 per share.

This board of directors-approved hike reflects a 100 per cent increase over the prior quarter dividend of C$ 0.21 per share, restoring the payout to its 2019 level. 

Suncor Energy Inc stock performance

Suncor Energy has recorded a stock price growth of nearly 91 per cent in the past one year. On a year-to-date (YTD) basis, the scrip has grown by more than 36 per cent.

The oil stock has also surged by nearly 34 per cent in the last nine months, while clocking a return of more than 10 per cent so far in October.

The C$ 41.8-million market cap company held a price-to-earnings ratio of 29.3 on Wednesday, while its return on equity (ROE) stood at 4.23 per cent.

Also read: 3 TSX-listed dividend stocks to buy in November 2021

Bottom line

Suncor Energy said in its latest earnings report that is has lessened its net debt burden by C$ 3.1 billion since the beginning of this year. The oil and gas enterprise believes that it can find its way back to the 2019 net debt levels in Q4 2021.

Comment


Disclaimer

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK