Production, operating costs and share prices – take a look at the main indicators of our internal economic performance in Suncor’s 2017 Report on Sustainability

Take a look at Suncor’s economic performance in our 2017 Report on Sustainability

Production, operating costs and share prices – take a look at the main indicators of our internal economic performance in Suncor’s 2017 Report on Sustainability

Production, operating costs and share prices – take a look at the main indicators of our internal economic performance in Suncor’s 2017 Report on Sustainability

Suncor is helping create well-paying jobs, promote economic growth in Canada and provide governments and suppliers with valuable revenues.

2016 economic performance

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We are one of a few energy companies in Canada to operate across the value chain – from resource extraction and upgrading to midstream logistics to refining and marketing. This integrated business model, along with a strong focus on execution, continues to generate solid results.

Here is a look at the main indicators of our internal economic performance in 2016:

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Production

Total upstream production averaged 622,800 barrels of oil equivalent per day (boe/d) in 2016, compared to 577,800 boe/d in 2015. This amount reflected an increase in volumes from Oil Sands operations due to the acquisition of additional Syncrude working interests in 2016, and continued strong performance within our upstream assets apart from the second quarter in Oil Sands, which was significantly impacted by the forest fires in Fort McMurray.

The production in 2016 included 504,900 barrels per day (bbls/d) from our Oil Sands business unit and 117,900 boe/d from Exploration and Production. Oil Sands operations production decreased to 374,800 bbls/d in 2016 from 433,600 bbls/d in 2015, primarily due to the loss of production associated with the forest fires in the Fort McMurray area and a major turnaround of Upgrader 2 in the second quarter, with both 2016 and 2015 impacted by planned maintenance in the third and fourth quarters. Lower Synthetic Crude Oil (SCO) production was partially offset by an increase in non-upgraded bitumen, which was the result of debottlenecking activities at Firebag, completed in the fourth quarter of 2015, and strong reliability.

Firebag’s steam-to-oil (SOR) ratio was comparable with the prior year. MacKay River’s SOR increased to 3.2 in 2016, from 2.9 in 2015 due to an additional steam requirement for a new well pad.

Please note: The production numbers cited above are from Suncor’s 2016 Annual Report. These are for upstream volumes only, and include production from non-operated assets. This differs from production numbers used in the performance data section of Suncor’s Report on Sustainability, which includes 100% of the production at Suncor-operated facilities only, and also includes downstream throughput volumes of saleable refined products.

Please note: The production numbers cited above are from Suncor’s 2016 Annual Report. These are for upstream volumes only, and include production from non-operated assets. This differs from production numbers used in the performance data section of Suncor’s Report on Sustainability, which includes 100% of the production at Suncor-operated facilities only, and also includes downstream throughput volumes of saleable refined products. For the purposes of our Report on Sustainability, net corporate production in 2015 was approximately 48.2 million cubic metres (m3), compared to 45.4 million m3 in 2014.

Earnings

We reported net earnings of $445 million in 2016, compared to net losses of $1.995 billion in 2015. Operating losses* for 2016 were $83 million, compared to operating earnings* of $1.465 billion in 2015.

Consolidated funds from operations* for 2016 was $5.988 billion, compared to $6.806 billion in 2015. Funds from operations decreased primarily due to the decline in crude prices, partially offset by higher production volumes and lower operating costs.

Operating costs*

Reducing our cash operating costs continues to be a focus for us. We reduced annual Oil Sands operations cash operating costs* per barrel from $27.85 per barrel (bbl) in 2015 to $26.50/bbl in 2016.

Share prices and dividends

Our common share price closed at $43.90 on the Toronto Stock Exchange on Dec. 31, 2016, an increase of approximately 23% from the year before.

  • We returned $1.877 billion in dividends in 2016, a 14% increase versus 2015.
  • 2016 marked the 14th consecutive year in which Suncor’s annual dividend has increased.

Balance sheet and financial position

Our approach to prudent capital spending in 2016 resulted in the company finishing the year within its revised 2016 capital guidance range of $5.8 to $6.0 billion, and $1 billion below the low end of initial 2016 guidance. We ended the year with $3 billion in cash and cash equivalents.

Read more about our economic performance in our 2016 financial reports

*Non-GAAP financial measure. Please see the Advisories.