Canadian oil producer Suncor Energy SU-T exceeded analysts’ second-quarter profit expectations on Tuesday, as higher output helped offset the impact of weak commodity prices.
Even as volatility in oil prices drives the broader energy industry into a downturn, Canada’s oil sands sector remains resilient.
Canadian producers are benefiting from the expansion of the Trans Mountain pipeline, which increased capacity to 890,000 barrels per day.
Canada exports nearly 4 million barrels of oil per day (bpd) to the U.S.
Suncor’s upstream quarterly production rose to 808,100 bpd from 770,600 bpd a year ago.
Its refinery throughput climbed 2.6 per cent to 442,000 bpd during the quarter, while refinery utilization improved to 95 per cent from 92 per cent a year earlier.
The results are in contrast to Suncor’s peer Imperial Oil IMO-T, which last week said declines in refinery throughput and weak oil prices weighed on its second-quarter profit.
The Canadian oil industry typically undergoes peak maintenance during the second quarter, which can keep production offline for weeks or even months.
Suncor CEO Rich Kruger said the company’s strong quarterly performance was driven by “the outstanding execution of major upstream and downstream turnaround activities, completed safely and ahead of schedule.”
The Canadian producer also lowered its current-year forecast for capital expenditure, which is now expected to be in the range of $5.7-billion to $5.9-billion, compared with its prior forecast of $6.1-billion to $6.3-billion.
The Calgary, Alberta-based company reported an adjusted profit of 71 Canadian cents per share for the quarter ended June 30, beating analysts’ average estimate of 69 Canadian cents per share, according to data compiled by LSEG.