Suncor Energy Inc. president and CEO Rich Kruger waits to appear before the House of Commons Standing Committee on Natural Resources in Ottawa, on Oct. 16, 2023.PATRICK DOYLE/The Canadian Press
Suncor Energy Inc.’s large Canadian refining footprint puts it in good shape should U.S. President Donald Trump follow through with the 10-per-cent tariffs he has promised on Canadian energy imports, the head of the Calgary-based oil giant says.
Although those levies have been delayed for 30 days, oil companies on both sides of the border are scrambling to convince U.S. officials of how detrimental tariffs would prove for industry and consumers.
Tariffs on Canadian oil could spur producers to try to maximize exports to non-U.S. markets. But the intertwined nature of the oil sectors in both countries means that the majority of Canadian exports would likely still be sold to the U.S., according to a recent Bank of Nova Scotia research note.
Roughly 95 per cent of crude exported from Canada goes to the United States, according to the Canada Energy Regulator, and hit a record 4.3 million barrels a day last year. In Suncor’s case, between 60 and 65 per cent of barrels stay north of the border, processed through its own refining network or shipped to customers off the B.C. coast.
Chief executive Rich Kruger told analysts Thursday that gives the company a “natural hedge,” even in the event of a trade war.
“I don’t know that anyone on the planet knows exactly what’s going to happen on tariffs,” Mr. Kruger said.
“We believe in free trade. We think the U.S. needs us, we need the U.S. But if we were in a world of tariffs, I like our position relative to our peer group.”
The company reported earnings of $818-million in the fourth quarter of 2024, down from $2.82-billion a year earlier, as it saw upstream production rise. That worked out to 65 cents per common share, down from $2.18 during the same quarter last year, it said.
Adjusted operating earnings were $1.57-billion, down from $1.64-billion a year earlier.
The performance of Suncor’s production and refining assets in 2024 was the “best ever,” Mr. Kruger said, coming in around 30 per cent higher than the company’s previous records.
At 828,000 barrels a day, Suncor’s upstream production was the highest in company history – roughly 11 per cent higher than in 2023, Mr. Kruger told analysts.
Mr. Kruger pointed to Suncor’s Firebag oil sands site in particular, which added 35,000 barrels a day of production, up 18 per cent over 2023.
“It is our most profitable asset and is internally known as the gift that keeps on giving,” he said.
Edmonton, Suncor’s most profitable refinery, led the pack with a record 105-per-cent utilization, though every major asset across the company’s portfolio – upstream and downstream – operated at greater than 100-per-cent utilization for the entire fourth quarter, Mr. Kruger said.
“This is extraordinary performance,” he said.
“It was back-to-back-to-back-to-back quarterly records. At Suncor, we call that a ‘four-peat.’ Pat Riley, the former coach of the L.A. Lakers, would be jealous.”
At its investor day last May, Suncor laid out a ream of performance goals it was eyeing over the next few years, including economic and production targets.
“The bottom line is, one year into a three-year plan, we’re exceeding every target established,” Mr. Kruger said. “In fact, we’ve essentially achieved target improvements for 2024 and 25 in the first year.”
Suncor has reduced its net debt below its $8-billion target, for example. In the fourth quarter of 2024, it also completed the co-generation facility at its Base Plant operations, which will be able to export up to 800 megawatts of electricity to Alberta’s power grid.
With a report from The Canadian Press