Suncor Energy Inc. (TSX:SU) is cutting its dividend by more than half after the energy company reported a $3.53-billion net loss for the first quarter.
The Calgary-based company said that the COVID-19 pandemic and a price war between Saudi Arabia and Russia that battered crude prices combined to push the first quarter results into negative territory.
The $3.53-billion net loss for the first quarter was in stark contrast to a profit of $1.47 billion a year earlier. In addition to weak commodity prices, the quarterly loss also included the impact of almost $1.8 billion in impairment charges.
Suncor Energy said it will slash its quarterly dividend approximately 55% to $0.21 per share from $0.47. It is also suspending share buybacks and reduced this year's capital spending budget by $400 million.
Suncor said that, as of March 31, it had $8.1 billion in liquidity. Since the first quarter ended, the oil and gas producer launched $1.25-billion in debt financing and secured another $300 million in credit facilities.
On an operating basis, Suncor lost $309 million, or $0.20 per share, in the first quarter compared to an operating profit of $1.2 billion, or $0.77 per share, a year earlier.
The company's total upstream production fell to 739,800 barrels of oil equivalent per day from 764,300 a year earlier.
