Canada’s Suncor Operating Profit Falls on Lower Crude Oil Prices

Brokerage firm research analysts covering Suncor Energy Inc.

Suncor Energy Inc. (NYSE:SU): On Wednesday heightened volatility was witnessed in Suncor Energy Inc. The company had a trading volume of 2,733,014 shares. “As a result of these initiatives and the operational progress the company has made, we are now in an even stronger position to remain cost competitive and potentially resume investing in high-return growth projects”.

Analysts are predicting that Suncor Energy Inc. will report earnings of $0.25 per share when the firm is scheduled to release their quarterly numbers on 2015-07-29. (NYSE:SU) is $42.45 and the 52-week low is $25.11. CIBC dropped their price target on shares of Suncor Energy from $49.00 to $45.00 and set a “sector outperformer” rating on the stock in a research note on Tuesday, July 21st. (NYSE:SU) at $37.2. The standard deviation of short term price target has been estimated at $8.18, implying that the actual price may fluctuate by this value. The 52-week low of the share price is at $24.9127. The company has a 50-day moving average of $27.22 and a 200 day moving average of $29.47. Many analysts expect U.S. production to decline by now, but it has proven more resilient than anticipated.

Cenovus reported a second-quarter profit of $126-million or 15 cents per share, down from $615-million or 81 cents a share a year ago. 6 analysts have suggested buy for the company.

Meanwhile, Suncor Energy announced it will cut spending by a further $400-million after its budget was pared down by $1-billion earlier this year.

Net earnings in the prior year quarter included after-tax impairment charges of C$718 million on the company’s interest in the Joslyn mining project, C$297 million against the company’s Libyan assets, and C$223 million on various Oil Sands assets, partially offset by an after-tax foreign exchange gain of C$282 million. In addition, the Company explores, acquires, develops, produces and markets crude oil in Canada and internationally, and the Company transports and refines crude oil, and market petroleum and petrochemical products primarily in Canada. The Company operates in three business segments: Oil Sands, Exploration and Production, and Refining and Marketing. The Company also markets third-party petroleum products. Suncor also conducts energy trading activities focused principally on the marketing and trading of crude oil, natural gas and byproducts.