CALGARY, Alberta, July 30 Suncor Energy Inc
, Canada's largest oil and gas company, said on Wednesday
its second-quarter profit fell 69 percent as it took a
substantial charge to account for a delayed oil sands mining
The company, Canada's dominant oil sands producer, reported
net income of C$211 million ($193.5 million), or 14 Canadian
cents per share, down from C$680 million, or 45 Canadian cents,
in the second quarter of 2013.
The result included a C$718 million non-cash charge to
account for its share in the Joslyn Oil Sands Project, which was
mothballed by partner Total SA earlier this year. It
also wrote down the value of its Libyan assets by C$297 million
and booked a C$223 charge for oil sands assets that no longer
fit into the company's future plans while recording C$314
million in gains.
Adjusted earnings, which exclude most one-time items, rose
18 percent to C$1.14 billion, or 77 Canadian cents per share,
from C$934 million, or 62 Canadian cents.
The adjusted result lagged the average analyst forecast for
the measure of 97 Canadian cents per share, according to Thomson
Suncor is ramping up its production from the world's
third-largest crude oil reserve. It said output from its
northern Alberta operations rose 37 percent to 378,800 barrels
per day due to less maintenance in the quarter and increasing
production from its Firebag thermal oil sands operations.
However, it said it has cut its capital spending budget by
C$1 billion, to C$6.8 billion, as it plans lower-than-forecast
spending on its oil sands projects and at its Libyan operations,
due to political unrest in the North African country.
In total, the company produced 518,400 barrels of oil
equivalent per day, up from 500,100 boepd in the year-prior
Cash flow, a key indicator of the company's ability to pay
for new projects and drilling, rose to C$2.41 billion, or C$1.64
per share, from C$2.25 billion, or C$1.49.
Along with its Alberta tar sands projects, Suncor produces
oil off Canada's east coast, in the North Sea and elsewhere. It
also owns refineries in Canada and the United States.
The company's shares closed at C445.79 on the Toronto Stock
Exchange on Wednesday.
($1 = 1.0902 Canadian Dollars)
(Reporting by Scott Haggett; Editing by Kenneth Maxwell)