Page 9 - NorthAmOil Week 44 2021

NorthAmOil PERFORMANCE NorthAmOil

Canadian giants post performance

improvements

CANADA CANADA’S four leading oil sands producers – Other issues with Suncor’s oil sands opera-
Canadian Natural Resources Ltd (CNRL), Sun- tions have also surfaced in recent months. In
cor Energy, Cenovus Energy and Imperial Oil June, the company cut production guidance
– have all posted third-quarter profits that have for its Fort Hills oil sands mine owing to slope
marked improved performances. Their perfor- stability issues on the south side of the mine.
mances were bolstered by stronger oil prices, It noted in its third-quarter earnings that Fort
which are also helping to bring back production Hills was anticipated to return to full production
after it fell last year owing to the coronavirus rates by the end of the year. Separately, in Sep-
(COVID-19) pandemic. tember, supplies were cut from Syncrude Can-
CNRL posted a net profit of CAD2.2bn ada, which is majority-owned by Suncor, owing
($1.8bn) for the third quarter of 2021, up from to a mechanical disruption.
CAD1.6bn ($1.2bn) in the second quarter and Cenovus reported net earnings of
CAD408mn ($327mn) in the third quarter of CAD551mn ($442mn) for the third quarter, up
2020. The company’s oil production rose to from a loss of CAD194mn ($156mn). Its total
952,839 barrels per day (bpd) sequentially from upstream output rose to 804,800 boepd from
872,718 bpd and year on year from 884,342 bpd. 471,799 boepd a year ago, while its oil output Out of the four
At the same time, CNRL’s overall output rose grew to 655,100 bpd from 411,788 bpd over the
to 1.2mn barrels of oil equivalent per day, up same period. producers,
slightly from 1.1mn boepd in both the second The company said it expected to achieve its
quarter of this year and the third quarter of last interim net debt target of below CAD10bn Imperial was the
year. CNRL’s president, Tim McKay, talked up ($8bn) “imminently” as a result of continued
the company’s “diverse product mix” as a com- strong cash generation at current commodity only one not to
petitive advantage, saying the producer could prices and receipt of proceeds from announced raise its dividend
opt to allocate capital to the highest-return asset sales.
projects without becoming too reliant on one And Imperial – ExxonMobil’s Canadian unit as a result of
commodity. – said its net income had risen to CAD908mn
Suncor, for its part, posted a net profit of ($728mn) in the third quarter. This was up its improved
CAD877mn ($703mn) for the third quarter of from CAD3mn ($2.4mn) a year ago and also
this year, up from a loss of CAD12mn ($10mn) more than double the CAD366mn ($294mn) third-quarter
a year ago. Its total upstream production rose achieved in the second quarter of this year. performance.
from 616,200 boepd a year ago to 698,600 boepd Imperial’s total production rose to 389,000
in the latest quarter, though its synthetic crude boepd, from 352,000 boepd a year ago, and its
output fell y/y from 410,800 bpd to 405,500 bpd crude and natural gas liquids (NGLs) output
over the same period. However, the company climbed to 370,000 bpd from 328,000 bpd over
noted that it had completed its planned five-year the same period.
turnaround at Upgrader 2 at its oil sands base Out of the four producers, Imperial was the
plant during the third quarter, with this likely to only one not to raise its dividend as a result of its
have played a contributing role. improved third-quarter performance.™

Week 44 04•November•2021 www. NEWSBASE .com P9