Suncor Energy Inc. (TSX: SU) cut its 2018 production guidance as it reported second-quarter earnings that were short of analyst expectations.
Suncor said the reduced production is the result of a lengthy outage at its Syncrude oil sands mine and upgrader. The Calgary-based oil company said it now expects its total production this year to reach about 745,000 barrels of oil equivalent per day, down from its earlier estimate of 760,000 barrels per day.
Suncor said its latest downgrade reflects the sudden power outage that halted Syncrude production of up to 350,000 barrels per day in June. Suncor owns 58.7% of Syncrude, which is not expected to be fully repaired until early to mid-September.
In announcing its earnings, Suncor said it had net income of $972 million in the three months ended June 30, higher than $435 million in the same period of 2017, but short of the $1.01 billion expected by analysts as reported by Thomson Reuters Eikon.
Revenue, boosted by higher oil prices and refinery margins, along with additional production from its new Fort Hills and Hebron projects, was $10.3 billion, up from $7.2 billion a year earlier, and ahead of analyst expectations of $9.3 billion
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