Suncor Energy Inc. is blaming a net loss in the last three months of 2018 primarily on steep price discounts for western Canadian oil, including the upgraded synthetic crude it produces at its oilsands mining operations.
The Calgary-based producer says it had a net loss of $280 million or 18 cents per share in the fourth quarter of 2018, compared to a net profit of $1.38 billion or 84 cents in the same period of 2017.
It says its net loss was inflated by accounting for inventory valuations and includes a $637-million non-cash foreign exchange loss on U.S. dollar denominated debt, as well as a non-cash impairment loss on one of the company’s equity investments.
Its operating earnings were $580 million or 36 cents per share, versus $1.31 billion or 79 cents in the year-earlier period, well below analyst expectations of $724 million, according to Thomson Reuters Eikon.
The company announced a 17 per cent increase in its quarterly dividend to 42 cents per share.
Suncor reported last month it had record fourth quarter upstream production of 831,000 barrels of oil equivalent per day, up 12 per cent from the third quarter.
“Suncor generated funds from operations of $2 billion in the fourth quarter as our integrated downstream business and market access helped to mitigate upstream crude price volatility, including the further widening of the differentials for Canadian crude,” said CEO Steve Williams in a statement.
The increase in the difference between benchmark New York-traded oil and western Canadian crude late last year has been blamed on a lack of pipeline access to export markets.
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Sherwood Park is a large hamlet in Alberta, Canada within Strathcona County that is recognized as an urban service area. It is located adjacent to the City of Edmonton’s eastern boundary, generally south of Highway 16 (Yellowhead Trail), west of Highway 21 and north of Highway 630 (Wye Road). Other portions of Sherwood Park extend beyond Yellowhead Trail and Wye Road, while Anthony Henday Drive (Highway 216) separates Refinery Row to the west from the balance of the hamlet to the east.
Sherwood Park was established in 1955 on farmland of the Smeltzer family, east of Edmonton. With a population of 70,618 in 2016, Sherwood Park has enough people to be Alberta’s seventh largest city, but technically retains the status of a hamlet. The Government of Alberta recognizes the Sherwood Park Urban Service Area as equivalent to a city.
Sherwood Park, originally named Campbelltown, was founded by John Hook Campbell and John Mitchell in 1953 when the Municipal District of Strathcona No. 83 approved their proposed development of a bedroom community east of Edmonton. The first homes within the community were marketed to the public in 1955. Canada Post intervened on the name of Campbelltown due to the existence of several other communities in Canada within the same name, so the community’s name was changed to Sherwood Park in 1956.
The Sherwood Park Urban Service Area is located in the Edmonton Capital Region along the western edge of central Strathcona County adjacent to the City of Edmonton. The majority of the community is bound by Highway 16 (Yellowhead Highway) to the north, Highway 21 to the east, Highway 630 (Wye Road) to the south, and Anthony Henday Drive (Highway 216) to the west. The Refinery Row portion of Sherwood Park is located across Anthony Henday Drive to the west, between Sherwood Park Freeway and Highway 16. Numerous developments fronting the south side of Wye Road, including Wye Gardens, Wye Crossing, Salisbury Village and the Estates of Sherwood Park, are also within the community. Lands north of Highway 16 and south of Township Road 534/Oldman Creek between Range Road 232 (Sherwood Drive) to the west and Highway 21 to the east are also within the Sherwood Park urban service area.