(Calgary) Suncor Energy did not announce the identity of its new chief executive during its fourth-quarter earnings conference call on Wednesday, but its interim chief executive, Kris Smith, said a decision to this subject was expected “very soon”.
The Calgary oil producer and refiner has been on the hunt for a new CEO since its former boss, Mark Little, resigned last July, under pressure from an activist investor and on the heels of a series of fatalities and occupational safety events.
Mr. Smith, who was previously vice president responsible for Suncor’s downstream business division, has since served as interim CEO. Suncor had previously indicated that a permanent chief executive would be appointed by mid-February, and Mr. Smith told analysts on Wednesday that a decision was imminent.
“The board is following a very diligent process and making sure they make the decision that’s going to move this business forward,” Smith said.
“I mean, it’s now February 15, so I expect the decision and the announcement to come pretty soon. »
Two of the board members serving on the CEO search committee were named to Suncor’s board in July, as part of a deal the company struck to appease US activist investor Elliott Investment Management.
Elliott publicly expressed frustration last spring with what he felt was a recent decline in the energy producer’s performance. At the urging of Elliott, Suncor recently completed a strategic review of its downstream retail business, a review that considered the possibility of divesting itself of the Petro-Canada gas station chain. However, the company ultimately decided to keep the retailer.
Suncor announced Tuesday evening that it had made a profit of 2.74 billion in the fourth quarter, an increase of 76% compared to that of 1.55 billion made in the last three months of 2021.
The company attributed the increase in earnings to the higher price of crude and refined product realizations, as well as higher upstream production, which was partially offset by higher operating expenses.
On an adjusted basis, Suncor says it earned $2.43 billion, or $1.81 per share, compared with $1.30 billion, or 89 cents per share, in the same quarter a year earlier.
The energy giant said its total upstream production rose to the equivalent of 763,100 barrels of oil per day in the fourth quarter, from 743,300 barrels per day in the same quarter a year earlier, mainly due to the company’s increased oil sands production.
Suncor’s refinery crude throughput was 440,000 barrels per day and its refining capacity utilization was 94% in the fourth quarter, compared to 447,000 barrels per day and 96% in the same quarter a year earlier .
The company attributed the decrease in part to unplanned maintenance operations that took place during the quarter.