Suncor Energy Inc. reported unaudited earnings and operating results for the first quarter of 2013. The company recorded first quarter 2013 operating earnings of CAD 1.367 billion or CAD 0.90 per common share, compared to CAD 1.318 billion or CAD 0.84 per common share for the first quarter of 2012. The quarter's results were highlighted by strong reliability from the company's in situ, upgrading and refining operations, which resulted in record Oil Sands production and record Refining and Marketing profitability. Cash flow from operations was CAD 2.284 billion or CAD 1.50 per common share for the first quarter of 2013, compared to CAD 2.415 billion or CAD 1.55 per common share for the first quarter of 2012. In addition to the same factors affecting operating earnings, cash flow from operations in the first quarter of 2013 was impacted by a CAD 93 million charge as a result of not proceeding with the Voyageur upgrader project. Net earnings were CAD 1.094 billion or CAD 0.72 per common share for the first quarter of 2013, compared with net earnings of CAD 1.446 billion or CAD 0.93 per common share for the first quarter of 2012. In addition to the factors that impacted operating earnings, the decrease in net earnings compared to the first quarter of 2012 was due to a CAD 146 million after-tax foreign exchange loss on the revaluation of U.S. dollar denominated long-term debt and an after-tax charge of CAD 127 million as a result of not proceeding with the Voyageur upgrader project. Net debt is CAD 6.8 billion. The company's total upstream production increased to 596,100 boe/d in the first quarter of 2013, compared to 562,300 boe/d in the first quarter of 2012. Upstream production of crude oil increased by 9% while natural gas production decreased by 18% over the prior year quarter. Oil Sands production (excluding proportionate share of production from the Syncrude joint venture) contributed an average of 357,800 bbls/d in the first quarter of 2013, compared with first quarter 2012 production of 305,700 bbls/d. The increase in Oil Sands production was primarily due to the continued ramp up of production from Firebag and stronger upgrader reliability in the first quarter of 2013. Cash operating costs per barrel for Oil Sands operations decreased in the first quarter of 2013, averaging CAD 34.80 per barrel compared to CAD 38.10 per barrel in the first quarter of 2012 due to higher production volumes. Cash operating costs were slightly higher due to incremental costs associated with higher production from Firebag, larger operations from recently commissioned assets and higher unplanned maintenance primarily in mining and extraction, partially offset by the net benefit of increased power sales. Suncor's proportionate share of production from the Syncrude joint arrangement contributed an average of 31,200 bbls/d of production during the first quarter of 2013, compared to 35,400 bbls/d in the same quarter of 2012. Syncrude operated at lower rates for the quarter, due primarily to planned and unplanned maintenance in upgrading and mining. Operational issues were resolved by the end of the quarter. The company revised the components of the corporate guidance for the fiscal year 2013 that it previously issued in December 2012, as amended on February 5, 2013. The key changes to the company's corporate guidance include: an explanatory note describing the impact of the proposed sale of the majority of Suncor's natural gas business in Western Canada, which is expected to result in a revised North America Onshore production outlook of 30,000 to 35,000 boe/d for 2013 and revised 2013 total production outlook of 559,000 to 609,000 boe/d, assuming the transaction closes in the third quarter of 2013. Growth capital expenditure budget this year is about CAD 3.3 billion.

Suncor Energy Inc.'s Board of Directors has approved an increase in the company's quarterly dividend to $0.20 per common share, from the previous level of $0.13 per common share. The dividend is payable on June 25, 2013, to shareholders of record at the close of business on June 4, 2013.

Suncor Energy Inc., Q1 2013 Earnings Call, Apr 30, 2013