Page 4 - NorthAmOil Week 45 2022

NorthAmOil COMMENTARY NorthAmOil

Canada’s oil sands producers

continue to profit from price trends

Canada’s leading oil sands producers have reported another set of profits for the third

quarter of 2022 as higher oil prices continued to bolster their performance

CANADA CANADA’S four leading oil sands producers analyst expectations. CNRL posted net earnings
have reported another profitable quarter, bol- of CAD2.8bn ($2.1bn) for the third quarter, or
WHAT: stered by higher crude prices. Canadian Natural CAD2.49 ($1.88) per diluted share. This repre-
Canada’s four leading oil Resources Ltd (CNRL), Suncor Energy, Cenovus sented an increase on CAD2.2bn ($1.6bn) in the
sands producers had a Energy and Imperial Oil remain committed to same quarter a year ago, but was down sequen-
profitable third quarter prioritising returns to shareholders, in line with tially on CAD3.5bn ($2.6bn) in the second quar-
in 2022. the broader oil and gas industry. They are also ter of this year.
increasingly turning their energy transition ini- The company’s adjusted net earnings from
WHY: tiatives, including their joint effort to cut green- operations came in at CAD3.5bn ($2.6bn), or
The companies have house gas (GHG) emissions in the oil sands over CAD3.09 ($2.32) per share, up from CAD2.1bn
continued to benefit from the long term through the development of car- ($1.6bn) year on year, but down sequentially
higher crude prices this bon capture and storage (CCS) capacity. on CAD3.8bn ($2.8bn). Analysts had expected
year. These trends were already evident in previ- earnings for the latest quarter to come in at
ous quarters and have continued in the third CAD2.85 ($2.14) per share, according to a
WHAT NEXT: quarter of this year. Long-term challenges and Thomson Reuters poll.
The producers are uncertainties over the pace of Canada’s future CNRL’s overall production rose to 1.3mn
maintaining their focus decarbonisation continue to hang over oil sands barrels of oil equivalent per day (boepd), repre-
on shareholder returns, producers. Nonetheless, they are currently senting both a sequential and quarterly increase.
while also stepping up reaping the benefits of higher demand for their Meanwhile, Suncor’s adjusted operating earn-
their energy transition output. ings for the third quarter more than doubled to
initiatives. CAD2.6bn ($1.9bn), or CAD1.88 ($1.41) per
Third quarter share, beating analyst expectations of CAD1.83
On the whole, the leading oil sands produc- ($1.37) per share. The company’s production
ers’ third-quarter performances came in above rose from 698,600 boepd a year ago to 724,100

Some opportunities for
oil sands consolidation
remain, as Suncor’s
move to buy Teck’s Fort
Hills stake shows.

P4 www. NEWSBASE .com Week 45 10•November•2022