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Suncor production recovery after Fort McMurray wildfire leads to $392M net profit

Aerial view of the Suncor oilsands extraction facility on the banks of the Athabasca River and near the town of Fort McMurray, Alberta. MARK RALSTON/AFP/Getty Images

Oilsands giant Suncor Energy is reporting net third-quarter earnings of $392 million compared with a net loss of $376 million in the same period of last year.

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The Calgary-based company reports a strong production rebound after second-quarter interruptions caused by the wildfire that swept through Fort McMurray, Alta.

It says output from its own oilsands operations rose to 433,700 barrels per day in the three months ended Sept. 30 from 178,000 bpd in the second quarter.

READ MORE: Oilsands companies expected to report back-to-normal numbers after Fort McMurray wildfire setback

It says its 54 per cent ownership of Syncrude Canada delivered 183,800 bpd in the third quarter versus 36,000 bpd in the second quarter. It increased its 2016 production guidance from Syncrude by 15,000 bpd based on the improved reliability.

Operating earnings, which strip out one-time and non-cash items such as foreign exchange losses, were $346 million, down from $410 million in the third quarter of 2015, as lower crude oil prices and refinery profit margins offset operating improvements and lower costs.

READ MORE: Alberta oilsands spending off $1B due to Fort McMurray wildfire

In a release, Suncor said it started a sales process for certain assets in its renewable energy business in the third quarter and advanced a previously announced sales process for its lubricants division.

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Watch below: Canada’s economy marked one of its worst one-month performances in seven years, with the real gross domestic product dropping 0.6 per cent in May. On July 29, 2016, Mike Drolet  filed this report on how the Fort McMurray wildfires were continuing to have an impact on the economy.

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