Suncor Energy Inc. has reported a profit of $818 million for the fourth quarter of 2024, marking a significant decrease from the $2.82 billion recorded a year earlier. Despite this dip in profit, the company's adjusted operating earnings stood at $1.57 billion, slightly down from $1.64 billion in the previous year. Analysts, including Chris MacCulloch from Desjardins, noted that Suncor's earnings exceeded expectations, even with the pre-release of key operational metrics in January.
Rich Kruger, Suncor’s Chief Executive, emphasized the company's strategic positioning to mitigate the potential impacts of U.S. tariffs on Canadian businesses. He highlighted Suncor's extensive Canadian refining capacity and integrated asset base as pivotal factors providing a natural hedge against such economic pressures. Kruger confidently stated that the U.S. market needs Suncor as much as Suncor needs the U.S., underscoring the mutual reliance between the regions.
Suncor distinguishes itself with a substantial refining footprint within Canada, processing nearly half of its corporate production domestically. This strategy reduces the company's exposure to tariffs compared to peers more dependent on exporting unrefined heavy crude across the border. By maintaining a higher capacity to export crude directly from the coast, Suncor positions itself as a resilient player amid North American trade tensions.
Kruger also pointed to the broader implications of U.S. tariffs on Canadian businesses, suggesting that Suncor serves as a "safe harbour" in the event of an energy trade conflict between North American countries. The company's integrated operations allow it to weather such economic storms more effectively than others in the industry.
