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Suncor Energy Q4 FFO Rises; To Buy Back Addl C$2 Bln In Shares

Suncor Energy Inc. (SU,SU.TO) reported that its funds from operations for the fourth quarter of 2019 rose to C$2.553 billion or C$1.66 per share from C$2.007 billion or C$1.26 per share in the fourth quarter of 2018.

Net loss widened to C$2.335 billion or C$1.52 per share from C$280 million or C$0.18 per share in the prior year quarter. The latest-quarter result included C$3.352 billion of non-cash after-tax asset impairment charges partially offset by a C$235 million unrealized after-tax foreign exchange gain on the revaluation of U.S. dollar denominated debt.

Operating earnings were C$782 million or C$0.51 per share, compared to C$580 million or C$0.36 per share in the prior year quarter. The increase was primarily a result of improved western Canadian crude oil differentials, including a substantial narrowing of heavy crude and SCO differentials, which more than offset lower benchmark pricing, from the prior year quarter. Analysts polled by Thomson Reuters expected the company to report earnings of C$0.63 per share for the fourth-quarter. Analysts' estimates typically exclude special items.

Suncor Energy's Board has approved a quarterly dividend of C$0.465 per share on its common shares, payable March 25, 2020 to shareholders of record at the close of business on March 4, 2020. This dividend represents an approximate 11% increase over the prior quarter.

In addition, the current C$2.5 billion share repurchase program will expire at the end of February. So, Suncor's board has approved a renewal of its share repurchase program of up to C$2 billion beginning March 1, 2020.

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