• Delivered adjusted funds from operations of $2.7 billion, including a $275 million before-tax restructuring charge related to the company’s workforce reduction plans, and adjusted operating earnings of $1.3 billion.
• Returned $1.4 billion to shareholders through $684 million in share repurchases and $679 million in dividends.
• Delivered total upstream production of 741,900 barrels of oil equivalent per day (boe/d), with strong upgrader utilization outside of planned maintenance activities and continued strong performance from In Situ assets.
• Completed all major annual planned maintenance across all refineries, resulting in refinery crude throughput of 394,400 barrels per day (bbls/d).
• Portfolio optimization continued with the completion of the sale of the U.K. Exploration and Production (E&P) portfolio.

“Our In Situ assets and upgraders delivered strong performance once again and helped reduce the impacts of planned maintenance at our integrated operations in the Fort McMurray region,” said Rich Kruger, Suncor’s President and Chief Executive Officer. “During the second quarter, we generated $2.7 billion of adjusted funds from operations and delivered $1.4 billion to shareholders, and we’re making good progress on our goal of clarifying, simplifying and focusing the organization to drive improved performance and maximize value for our shareholders.”

Financial highlights

• Suncor’s adjusted operating earnings were $1.253 billion ($0.96 per common share) in the second quarter of 2023, compared to $3.814 billion ($2.71 per common share) in the prior year quarter, primarily due to decreased crude oil and refined product realizations reflecting a weaker business environment in the current quarter, and a first-in, first-out (FIFO) inventory valuation loss in the current quarter compared to a gain in the prior year quarter, partially offset by lower royalties and income taxes.
• Suncor’s net earnings were $1.879 billion ($1.44 per common share) in the second quarter of 2023, compared to $3.996 billion ($2.84 per common share) in the prior year quarter.
• Adjusted funds from operations were $2.655 billion ($2.03 per common share) in the second quarter of 2023, compared to $5.345 billion ($3.80 per common share) in the prior year quarter.
• Cash flow provided by operating activities, which includes changes in non-cash working capital, was $2.803 billion ($2.14 per common share) in the second quarter of 2023, compared to $4.235 billion ($3.01 per common share) in the prior year quarter.
• Suncor’s total operating, selling and general (OS&G) expenses were $3.440 billion in the second quarter of 2023, compared to $3.088 billion in the prior year quarter, with the increase primarily due to a $275 million restructuring charge related to the company’s workforce reduction plans, increased mining activity, the company’s increased working interest in Fort Hills, increased maintenance costs and the impact of inflation. This was partially offset by a decrease in share-based compensation expense and decreased commodity input costs primarily due to lower natural gas prices.
• As at June 30, 2023, Suncor’s net debt was $14.394 billion, a reduction of $1.320 billion compared to March 31, 2023, with the decrease in net debt primarily due to an increase in cash and cash equivalents, which included the proceeds from the sale of the company’s U.K. E&P portfolio.

Operational highlights

• Total Oil Sands bitumen production increased in the second quarter of 2023 compared to the prior year quarter, due to lower maintenance activities in the current period, excluding at Syncrude, which was impacted by planned turnaround activities, and the company’s increased working interest in Fort Hills.
• The company’s net SCO production increased to 505,000 bbls/d in the second quarter of 2023, representing combined upgrader utilizations of 94%, compared to 483,000 bbls/d and 89% in the prior year quarter, reflecting lower planned maintenance activities in the current period and strong upgrader utilizations outside of planned maintenance activities.
• To mitigate the impacts of planned maintenance during the quarter, the company leveraged its regional asset connectivity through increased internal transfers between assets.
• The company’s saleable non-upgraded bitumen production increased to 174,100 bbls/d in the second quarter of 2023, compared to 158,500 bbls/d in the prior year quarter, reflecting increased production at the company’s In Situ assets, as the prior year quarter was impacted by maintenance activities, and increased production at Fort Hills, due to the company’s additional working interest.
• E&P production during the second quarter of 2023 decreased compared to the prior year quarter, primarily due to natural declines and the divestment of the company’s Norway assets in the third quarter of 2022.
• Refinery crude throughput was 394,400 bbls/d and refinery utilization was 85% in the second quarter of 2023, compared to 389,300 bbls/d and 84% in the prior year quarter, reflecting planned turnaround activities in both periods.
• Refined product sales in the second quarter of 2023 were 547,000 bbls/d, compared to 536,900 bbls/d in the prior year quarter, primarily due to the company leveraging its extensive domestic sales network and export channels. 

Corporate and Strategy Updates

• Portfolio optimization. Completed the sale of the U.K. E&P portfolio for gross proceeds of $1.1 billion, resulting in a gain on sale of $607 million ($607 million after-tax).
• Update on acquisition of TotalEnergies’ Canadian operations. Following ConocoPhillips Canada exercising its pre-emptive right to purchase the 50% working interest in the Surmont in situ asset, Suncor is continuing to evaluate the transaction to acquire the remainder of TotalEnergies’ Canadian operations, including the remaining 31.23% working interest in Fort Hills.
• Sustainability reporting. Suncor released its 2023 Report on Sustainability and Climate Report, marking its 28th year of sustainability reporting. The reports highlight how the company is working to achieve strong environmental, social and governance performance and its actions on sustainable energy development. 
• Cybersecurity incident. The company experienced a cybersecurity incident in late June. The incident did not impact the safety or reliability of the company’s field operations but did impact some business operations and services at the end of the quarter, which did not have a material impact on the company’s financial results.

KeyFacts Energy: Suncor Energy Canada country profile