Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: When you look at 2024, the organization drove huge operational improvement both upstream and downstream. For 2025, does either segment shine more brightly, or is it expected to be balanced? A: Richard Kruger, President and CEO, stated that the philosophy of maximizing existing assets applies company-wide. Both upstream and downstream segments have potential for improvement, with ongoing efforts to identify and address constraints. Peter Zebedee, EVP of Mining and Upgrading, and Dave Oldreive, EVP of Downstream, emphasized low-cost bottleneck solutions and optimization strategies to unlock additional capacity.
Q: Can you provide an update on Fort Hills' mine progression and equipment deliveries? A: Peter Zebedee, EVP of Mining and Upgrading, reported that the transition to the Center and North Pits is progressing well, with 10 shovels in the North Pit and five in the Center Pit. Equipment deliveries are on track, with 45 trucks received in 2024 and the remainder expected by February 2025. The focus is on maximizing efficiency and reducing unit costs.
Q: With significant progress on lowering your all-in breakeven by $10, could there be upside to these numbers? A: Richard Kruger, President and CEO, acknowledged the potential for exceeding targets, noting that the company achieved $7 of the $10 reduction in the first year. The focus remains on delivering value, with ongoing opportunities for improvement and new ideas emerging.
Q: How do you view the refining market outlook for the next six to nine months? A: Dave Oldreive, EVP of Downstream, noted that while refining margins have normalized, there is potential upside. Suncor's integrated model allows for optimization in any market environment, focusing on throughput, cost reduction, and maximizing value from sales and marketing.
Q: How do you think about Syncrude consolidation and Lease 29 discussions? A: Richard Kruger, President and CEO, stated that Suncor is focused on long-term shareholder value and will consider opportunities that align with this goal. Kris Smith, CFO, added that Lease 29 is not a current focus, as Suncor has ample bitumen supply for its upgraders.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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