Page 28 - Suncor AR English

FINANCIAL INFORMATION

Suncor’s consolidated operating earnings for 2013 were • Financing expense and other income increased primarily

$4.700 billion, compared to $4.847 billion in 2012. Factors due to higher interest expense associated with
that positively impacted operating earnings in 2013, additional capital leases and lower capitalized interest.

compared to 2012, included:
Cash Flow from Operations
• Average price realizations for production from Oil Sands
Operations were higher in 2013 due primarily to Consolidated cash flow from operations for 2013 was
$9.412 billion, compared to $9.733 billion in 2012. Cash
strength in WTI and the impact of the weaker
Canadian dollar, which more than offset wider flow from operations decreased due primarily to
incremental current income tax expense related to the
light/heavy differentials, that placed downward pressure
on prices for sour SCO and bitumen. Exploration and company’s Canadian operations recorded in 2013 and
higher operating expenses, partially offset by higher
Production price realizations were positively impacted in
2013 by higher natural gas prices and the weaker production volumes and higher price realizations.

Canadian dollar. Refining margins were slightly lower in
2013 due to narrower crude differentials and lower Results for 2012 compared with 2011
Net earnings for 2012 were $2.740 billion, compared to
crack spreads compared to 2012.
$4.304 billion in 2011. The decrease in net earnings was
• Total upstream production volumes rose to an average due mainly to the same factors impacting operating
of 562,400 boe/d in 2013, compared to 549,100 boe/d
in 2012, reflecting record production in Oil Sands, earnings and by the operating earnings adjustments
described above.
which more than offset the reduced production from
the sale of the company’s conventional natural gas Operating earnings for 2012 were $4.847 billion compared

business and the shut-in of production in Libya. In to $5.674 billion in 2011. The decrease in operating
Refining and Marketing, strong utilization rates and earnings was due mainly to higher DD&A and exploration

more favourable feedstock mix and product yield had a expenses, higher operating expenses driven by a larger
positive impact on operating earnings in 2013 share-based compensation charge, increased royalty

compared to 2012.
expense due to higher production from Libya, and lower
price realizations for upstream production that were largely
• Royalties were lower in 2013 compared with 2012, due offset by strong refining margins. Lower production in the
primarily to the impact of lower production from Libya,
Exploration and Production segment was offset by the
partially offset by higher production at Oil Sands.
increase in production from the Oil Sands segment.

The following factors had a negative impact on operating Consolidated cash flow from operations for 2012 was
earnings in 2013 compared to 2012:
$9.733 billion, compared to $9.746 billion in 2011. Cash
• Operating expenses increased in 2013 primarily due to flow from operations was impacted by lower price

increased operating costs in Oil Sands, largely realizations in the Oil Sands segment, partially offset by
associated with increased production, additional mine strong refining margins.

maintenance, and higher natural gas costs and
consumption, as well as increased transportation

expense in Oil Sands and Refining and Marketing.

• DD&A and exploration expenses were higher in 2013,
due mainly to a larger asset base, partially offset by

lower production in Exploration and Production.

24 SUNCOR ENERGY INC. ANNUAL REPORT 2013