Suncor Energy Q4 FFO Rises

(RTTNews) - Suncor Energy Inc. (SU.TO, SU) reported that its fourth-quarter Funds from operations were C$3.016 billion or C$1.83 per common share compared to C$2.365 billion or C$1.42 per common share in the fourth quarter of 2016.

Operating earnings were C$1.310 billion or C$0.79 per share compared to C$636 million or C$0.38 per share in the prior year quarter. The latest-quarter result includedimproved crude oil pricing and benchmark crack spreads, lower operating and exploration costs, refinery utilization of 94%, higher sales volumes at Oil Sands and continued strong upstream production. Improved benchmark pricing in the quarter was partially offset by the strengthening of the Canadian dollar.

Net earnings were C$1.382 billion or C$0.84 per common share in the fourth quarter of 2017, compared to C$531 million or C$0.32 per common share in the prior year quarter.

Net earnings for the fourth quarter of 2017 included a net C$124 million deferred income tax recovery related to a decrease in the United States corporate tax rate from 35% to 21%, an unrealized after-tax foreign exchange loss of C$91 million on the revaluation of U.S. dollar denominated debt, after-tax insurance proceeds of C$55 million, an after-tax loss of C$18 million for early payment of debt and a net after-tax gain of C$2 million on interest rate swaps associated with debt issued in the fourth quarter.

Net earnings in the prior year quarter included an unrealized after-tax foreign exchange loss of C$222 million on the revaluation of U.S. dollar denominated debt, C$71 million of after-tax derecognition charges and a non-cash after-tax mark to market gain of C$188 million on interest rate derivatives.