(Calgary) Suncor Inc. reports net losses of $609 million in the third quarter as it suffered a $3.4 billion writedown in the value of its shares in the Fort Hills oil sands project.
Posted at 10:06 p.m.
The net loss, which translates to 45 cents per common share, contrasts sharply with the performance in the same period last year when the company posted a profit of 877 million or 59 cents per share.
Last week, Suncor announced that it would buy out Teck Resources Ltd. of 21.3% in the Fort Hills project for an estimated sum of one billion dollars. The agreement is based on a price below market value for the operation, which results in a non-cash impairment charge.
On an adjusted basis, Suncor says it took a profit of $2.6 billion for the three months ended Sept. 30, or $1.88 per share, compared to $1 billion or 71 cents per share in third quarter of 2021.
This adjusted profit from operations is mainly due to a significant increase in the price of crude oil and an increase in production.
Suncor’s production increased to an equivalent of 724,100 barrels of oil per day in the third quarter of 2022, compared to 698,600 barrels per day in the same period last year.