Suncor Energy (TSX:SU) has announced a share buyback program and is doubling its dividend payout as it continues to benefit from surging oil prices.
The oil producer’s board of directors has approved a quarterly dividend hike of 100% to $0.42 per common share from $0.21 per share previously – marking a return to pre-pandemic 2019 levels.
Suncor is also increasing its share buyback plan by an additional 2% to roughly 7% of its float, or 107 million shares.
Oil prices have rallied in recent months as rising demand has outstripped supply.
Suncor said that, as of September 30, it had paid down $3.1 billion in debt so far this year, which will continue to be a focus for the company.
News of the share buyback and dividend hike came as Suncor reported financial results that showed it swung to an operating profit of $1.04 billion in the third quarter, compared to an operating loss of $338 million a year earlier.
The Calgary-based company’s quarterly funds from operations more than doubled to $2.64 billion, from $1.17 billion in the previous year.
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