Suncor surges after posting strong Q3 earnings beat, record production

[Suncor Energy]
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Suncor Energy (SU [https://seekingalpha.com/symbol/SU]) +4.6% in Wednesday's trading after Q3 adjusted earnings [https://seekingalpha.com/news/4515113-suncor-energy-non-gaap-eps-of-c148-beats-by-c034] easily topped expectations while production and refinery throughput hit new quarterly records, and raised its quarterly dividend [https://seekingalpha.com/news/4515694-suncor-energy-raises-dividend-by-53-to-cad-060-a-share] to C$0.60/share.

Q3 net profit fell to C$1.62 billion (~US$1.15 billion) from C$2.02 billion in the year-earlier quarter rose from C$1.13 billion in Q2, with revenues falling 3% Y/Y at C$12.67 billion, in part due to lower crude oil prices.

Q3 adjusted cash flow from operations fell to C$3.79 billion, or C$3.13/share, from C$4.26 billion, or C$3.36/share, a year ago but ahead of the C$3.12 billion expected by FactSet.

Q3 total upstream production jumped 5% Y/Y to 870,000 boe/day, up from 828,600 boe/day, and refinery throughput for the quarter increased 1% to hit a record 492,000 bbl/day - both company records - and refined product sales rose 5.6% to a record high 646,800 bbl/day, while refinery utilization was at 106% compared with 105% last year.

For the full year, Suncor (SU [https://seekingalpha.com/symbol/SU]) raised guidance for production to 845,000-885,000 bbl/day from prior guidance of 810,000-840,000 bbl/day, refinery throughput to 470,000-475,000 bbl/day from 435,000-450,000 bbl/day previously, and refinery utilization to 101%-102% of capacity from its prior target of 93%-97%.

"Once again Suncor beat on all major metrics in 3Q, despite heavy maintenance," according to UBS analyst Manav Gupta, reiterating his Buy recommendation and raising his stock price target to C$65 from C$61.

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