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Summary
- Suncor saw its funds from operations rise on a quarter-over-quarter basis to C$ 1.2 billion in the fourth quarter of 2020.
- Its cash flow from operations, on the other hand, was substantially lower year-over-year to C$ 814 million in Q4 2020.
- Its quarterly dividend, meanwhile, remained unchanged at C$ 0.21, which currently posts an yield of 3.77 per cent, as per TMX data.
Canadian oil giant Suncor Energy Inc (TSX:SU) had a tough year in 2020 due to the COVID-19 outbreak that led to its operational disruptions, financial crisis, and even workforce reductions. As investors shied away from this oil and gas stock, Suncor fell a little further from grace by losing its position as Canada's most valuable energy company to Canadian Natural in October last year.
Now, almost a year since the onset of the coronavirus and the market meltdown, has the Calgary-based energy corporation recovered from its lows? Let’s take a closer look at its latest financials to understand.
Suncor Energy Inc (TSX:SU) Latest Financials
Suncor saw its funds from operations rise on a quarter-over-quarter basis to C$ 1.2 billion in the fourth quarter of 2020. The company reported that its operating funds in Q4 2020 exceeded its sustaining capital and dividend payments.
Its cash flow from operations, on the other hand, was substantially lower year-over-year to C$ 814 million in Q4 2020, down from C$ 2.3 billion in Q4 2019.
Suncor’s operating loss of C$ 142 million in Q4 2020 was comparatively less than that of C$ 302 million in Q3 2020. Meanwhile, it incurred a net loss of C$ 168 million in the latest quarter.
Among other things, Suncor’s Q4 net loss was fueled by substantial impairment charges stemming from uncertainty around the West White Rose Project and a transportation provision from the now-canned Keystone XL pipeline project.
©Kalkine Group 2020
Exceeding its own expectations, Suncor managed to snip its annual operating costs by C$ 1.3 billion, i.e., about 12 per cent, in 2020.
After watching its operations suffer amid lockdown restrictions in previous quarters of 2020, Suncor saw “reliable operations” motor its refinery utilization to 95 per cent in the fourth quarter. This was up from 87 per cent in the third quarter of 2020 and close to 97 per cent in the pre-pandemic times of Q4 2019.
Its quarterly dividend, meanwhile, remained unchanged at C$ 0.21, which currently posts a yield of 3.77 per cent, as per TMX data.
Suncor’s Q4 revenue of C$ 6.6 billion was down from analysts’ projection C$ 7.4 billion, as per financial data firm Refinitiv.
With its stocks also trading flat year-to-date, Suncor Energy has a long road ahead to make a full recovery from its pandemic-triggered lows.
