The final week of October has seen a pack of energy companies release their third quarter earnings.
Suncor Energy (TSX:SU)(NYSE:SU) is one of the largest integrated energy companies in the country. It released its third-quarter 2021 earnings on October 27.
Predictably, Suncor has thrived in a very strong environment for oil and gas prices. However, it has also improved due to strong results in its Refining & Marketing business. Moreover, it posted a significant planned turnaround at Oil Sands Base. Suncor reported funds from operations (FFO) of $2.64 billion or $1.79 per common share – up from $1.16 billion or $0.76 per common share in the previous year.
As stated, its Refining & Marketing segment delivered $947 million in FFO in Q3 2021. This was the third-highest FFO on record in its R&M business. Meanwhile, Suncor’s upstream production remained very strong at 698,700 barrels of oil equivalent per day boe/d. This was up from 616,200 boe/d in the third quarter of 2020.
Suncor has been more focused on returning value to shareholders in 2021 after a brutal 2020. It returned $1.0 billion to its shareholders through $704 million in share repurchases in Q3 2021. Moreover, it reduced net debt by a whopping $2.0 billion.
Shares of Suncor possess a price-to-earnings ratio of 32, which puts the stock in solid value territory. It doubled its quarterly dividend payout to $0.42 per share. Suncor still offers nice value after this very encouraging earnings release.
