Page 30 - Suncor AR English
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FINANCIAL INFORMATION
where a delay exists between the time that feedstock is Economic Sensitivities(1)(2)
purchased and when it is processed and sold to a third The following table illustrates the estimated effects that
party. Specific refinery margins are further impacted by changes in certain factors would have had on 2013 net
actual crude purchase costs, refinery configuration and earnings and cash flow from operations if the listed
refined products sales markets unique to that refinery. In changes had occurred.
2013, crack spreads declined significantly, which had an
adverse impact on refining margins compared to the Cash Flow
Net From
prior year.
(Estimated change, in $ millions)
Earnings Operations
The majority of Suncor’s revenues from the sale of oil and Crude oil +US$1.00/bbl
98 98
natural gas commodities are based on prices that are ........................................................................................................................
Natural gas +Cdn$0.10/mcf (8) (8)
determined by, or referenced to, U.S. dollar benchmark ........................................................................................................................
prices. The majority of Suncor’s expenditures are realized in Light/heavy differential
+US$1.00/bbl 4 4
Canadian dollars. An increase in the value of the Canadian ........................................................................................................................
dollar relative to the U.S. dollar will decrease revenue 3-2-1 crack spreads +US$1.00/bbl 113 113
........................................................................................................................
received from the sale of commodities. A decrease in the Foreign exchange
value of the Canadian dollar relative to the U.S. dollar will
increase the revenues received from the sale
+$0.01 US$/Cdn$(3) (52) (131)
........................................................................................................................
of commodities.
Foreign exchange on
U.S. denominated debt
In 2013, the Canadian dollar weakened in relation to the (3)
U.S. dollar as the average exchange rate decreased to +$0.01 US$/Cdn$79 —
0.97 from 1.00, which had a positive impact on price (1) Each line item in this table shows the effects of a change in that
realizations for the company in 2013.
variable only, with other variables being held consistent.
(2) Changes for a variable imply that all such similar variables are
Conversely, many of Suncor’s assets and liabilities, notably
impacted, such that Suncor’s average price realizations increase
most of the company’s debt, are denominated in
uniformly. For instance, ‘‘Crude oil +US$1.00/bbl’’ implies that price
U.S. dollars and translated to Suncor’s reporting currency realizations influenced by WTI, Brent, SCO, WCS, par crude at
Edmonton and condensate all increase by US$1.00/bbl.
(Canadian dollars) at each balance sheet date. A decrease
in the value of the Canadian dollar relative to the
(3) The difference between estimates for net earnings and cash flow from
operations are due primarily to the revaluation of U.S. dollar
U.S. dollar from the previous balance sheet date increases denominated debt that is included within net earnings but not within
the amount of Canadian dollars required to settle
cash flow from operations.
U.S. dollar denominated obligations.
26 SUNCOR ENERGY INC. ANNUAL REPORT 2013
