Suncor stops upgrades, takes 28% loss
Oilsands developer Suncor on Tuesday posted a fourth-quarter-2008 net loss of $215 million, or down from the C$1.04 billion earnings notched for late 2007 on slumped ...
Oilsands developer Suncor on Tuesday posted a fourth-quarter-2008 net loss of $215 million, or down from the C$1.04 billion earnings notched for late 2007 on slumped oil prices and bumped-up costs.
Company full-year net earnings for 2008 reached C$2.14 billion, down 28 percent from the previous year, as unforeseen maintenance put a stop to some production.
"We've put considerable effort into maximizing the reliability of our assets with the target of achieving higher, more stable production rates in 2009 and beyond,” company boss Rick George said in a statement.
Company production was down slightly due to maintenance, although volumes of 264, 700 barrels of oil equivalent per day were produced, down slightly year-on-year.
With production in 2009 expected to be less that the design capacity of its 350,000-barrel-per-day upgraders — and with debt more than double what it was by year-end 2007 — Suncor plans a capital spend of C$3 billion in 2009. It’s half what the company in October 2008 said it would spend in 2009.
Pending a quarterly review of project economics, the company said construction on the Voyageur upgrader and Firebag Stage 3 will be wound down and the projects placed in "safe mode".
“With market conditions limiting our growth capital spending in 2009, we will be tightly focused on getting full value from our existing assets," George stated. “We have some of the most experienced employees and contractors in the industry.”