(Calgary) Suncor Energy’s new interim chief executive says the oil and gas giant is ready to stop studying its workplace safety problem and instead start implementing solutions.
Posted at 1:16 p.m.
Kris Smith, who took charge of the company following the departure of former boss Mark Little — who resigned last month following the death of a worker at the Suncor Base mine near Fort McMurray, in Alberta — made the comments on Friday during his first quarterly conference call with analysts since assuming his new role.
“We completed an independent safety assessment last year, and we clearly know what we need to do to improve our safety performance,” Smith said. We don’t need more diagnostics; what we need to do is take action. »
At least 12 workplace fatalities have occurred at Suncor sites since 2014, more than all of its competitors in the oil sands combined.
Earlier this spring, Suncor’s safety performance — along with a series of recent operational and production issues — caught the attention of U.S. activist investor Elliot Investment Management, which publicly presented its case for of a change in Calgary-based society.
Last month, Suncor announced that it had reached an agreement with Elliot that includes the appointment of three new independent directors to Suncor’s board, as well as a review of its Petro-Canada gas station chain — an exercise that could lead to the sale of these activities.
Smith said Suncor is implementing new technologies at its oil sands sites, such as collision awareness and driver safety systems, which should help improve workplace safety.
But he added that while technology was an important tool, it will be even more important to address the company’s safety culture on the front line.
“If I go back to the incidents that we had, they are related to the way the work was carried out in the field,” said Mr. Smith. Although technology is a huge enabler […], it’s really about being committed to ensuring that work is done safely every day in the field. »
“And so that’s really, I think, the area that I think needs focus and attention. »
Suncor announced Thursday evening that it made profits of 3.99 billion in the second quarter, or $2.84 per common share, a result more than four and a half times higher than that of 868 million in the same period in 2021.
The oil producer and refiner said its adjusted funds from operations reached $5.35 billion in the quarter, its highest level in company history and 33% above the previous record. established in the previous quarter, when the war in Ukraine sent crude oil prices skyrocketing.
Production at the company’s oil sands assets increased to 641,500 barrels per day in the second quarter, from 615,700 barrels per day in the same quarter last year, due to increased production at its Syncrude sites and Fort Hills.
Refinery crude throughput increased to 3,389,300 barrels per day and refinery utilization was 84% in the second quarter, compared to throughput of 325,300 barrels per day and 70% utilization in the same quarter in 2021.
The company also announced Thursday that it has reached an agreement to sell its Norwegian assets, pending regulatory approval, for gross proceeds of around $410 million. The sale is expected to be finalized in the fourth quarter of 2022.