Suncor to return all excess cash to shareholders after hitting debt target early

CALGARY – Suncor Energy Inc. says it will be returning all excess funds to shareholders after achieving its debt-reduction target ahead of schedule as it pumps record amounts of oil.

The oilsands giant says it had upstream production of 829,000 barrels per day to mark its best third quarter ever, its highest ever refining throughput of 488,000 barrels per day and highest ever refined sales at 612,000 barrels per day.

Chief executive Rich Kruger says efforts to ease bottlenecks and no major maintenance work helped it push records higher for another quarter.

The higher production helped it earn $2.02 billion in its third quarter, up from $1.54 billion a year earlier.

The company reduced its debt by more than $1.4 billion in the quarter to achieve its net debt target of $8 billion, triggering the 100 per cent excess funds payout to shareholders that is up from 50 per cent at the start of the year.

Suncor returned $1.5 billion to shareholders in the quarter through share buybacks and dividends, while it boosted its dividend by five per cent to 57 cents per share.

This report by The Canadian Press was first published Nov. 13, 2024.

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