Suncor Energy releases first quarterly results following merger with Petro-Canada

All financial figures are unaudited and in Canadian dollars unless noted otherwise. Certain financial measures referred to in this document are not prescribed by Canadian generally accepted accounting principles (GAAP). For a description of these measures, see Non-GAAP Financial Measures on page 23 of Suncor’s 2009 third quarter management’s discussion and analysis (MD&A). This document makes reference to barrels of oil equivalent (boe). A boe conversion ratio of six thousand cubic feet of natural gas: one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Accordingly, boe measures may be misleading, particularly if used in isolation.
On August 1, 2009, Suncor Energy Inc. completed its merger with Petro-Canada. The three and nine month amounts ending September 30, 2009 reflect results of the post-merger Suncor from August 1, 2009 together with results of legacy Suncor only from January 1 through July 31, 2009. The comparative figures reflect solely the 2008 results of legacy Suncor. For further information with respect to the merger transaction, please refer to note 3 to the September 30, 2009 unaudited interim consolidated financial statements.

Calgary, Alberta (November 6, 2009) — Suncor Energy Inc. today reported third quarter 2009 net earnings of $929 million ($0.74 per common share), compared to $815 million ($0.87 per common share) in the third quarter of 2008. Operating earnings in the third quarter of 2009 were $288 million ($0.23 per common share), compared to $810 million ($0.87 per common share) in the third quarter of 2008. Cash flow from operations was $574 million in the third quarter of 2009, compared to $1.146 billion in the third quarter of 2008.

“This was a milestone quarter in Suncor’s history and a very productive one as we closed our merger with Petro-Canada and started an extensive integration of our operations across the new company,” said Rick George, president and chief executive officer. “The integration work we’ve completed in just a little over three months is already yielding some significant efficiencies that will enable Suncor to come out of this cycle stronger than ever as a globally competitive energy producer.”

The decrease in operating earnings and cash flow from operations was primarily due to lower price realizations, as benchmark commodity prices were significantly weaker in the third quarter of 2009 compared to the same period in 2008, and higher operating expenses at our oil sands operations as a result of increased production and sales volumes. These factors were partially offset by increased upstream production resulting from the merger with Petro-Canada and improved operational performance in our existing oil sands assets.

Net earnings for the first nine months of 2009 were $689 million compared to $2.352 billion for the same period in 2008. Operating earnings in the first nine months of 2009 were $646 million, compared to $2.471 billion in the first nine months of 2008. Cash flow from operations was $1.670 billion in the first nine months of 2009, compared to $3.826 billion for the same period in 2008. The year-to-date decreases in earnings and cash flow from operations were primarily due to the same factors that impacted third quarter results.



http://www.suncor.com/en/newsroom/2418.a...