- Suncor Energy (SU +3.8%) CEO Steve Williams says the company is not likely to start any new major growth projects given the current economic environment.
- SU is working towards finishing two multibillion-dollar growth projects in the oil sands, but once those are complete, the company will be “taking a breath around growth projects," the CEO says.
- Williams says SU will continue to focus on lowering costs as it ramps up daily production from 691K boe/day during Q1, which was 602K boe/day in the year-ago quarter, to ~800K by 2019; the Q1 gain stemmed largely from the increased stake in Syncrude and higher oil sands output.
- SU raises its FY 2016 production guidance to 620K-665K boe/day from its previous forecast of 525K-565K boe/day (Q1 earnings report).
- Williams says SU is considering selling off $1B-$1.5B in assets during the next year or so, with the sale of its retail gas business a possibility.
- SU also is keeping its spending plans for the year unchanged at C$6B-C$6.5B.
- Now read Suncor takes extra 5% stake in Syncrude for $937M