Suncor Energy Inc. deepened its spending cuts, suspended its share repurchase program and cut its quarterly dividend by 55 per cent, hit by a historic plunge in oil prices caused by a feud between Saudi Arabia and Russia and the COVID-19 pandemic.
Canada’s second-largest oil and gas producer produced a total of 739,800 barrels of oil equivalent a day in the first quarter, down from 764,300 boe/d a year ago.
North American oil and gas companies have been curbing output and slashing spending targets amid a collapse in crude prices and drop in oil consumption.
Suncor cut its 2020 capital budget to a range of $3.6-billion to $4-billion, a $400-million reduction at mid-point compared with the previous guidance and about 33 per cent compared with the original plan.
The company also suspended share repurchases and reduced its quarterly dividend to 21 cents a common share from 46.5 cents a common share.
The Calgary-based company posted a loss of $3.53-billion, or $2.31 a share, in the first quarter ended March 31, compared with a profit of $1.47-billion, or 93 cents a share, a year earlier.
The company recorded an after-tax impairment charge of $1.798-billion on its share of the Fort Hills assets and against its share of the White Rose and Terra Nova assets.
Excluding one-off items, the company posted a loss of 20 cents a share, missing analysts’ estimates of a loss of 17 cents, according to IBES data from Refinitiv.
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