Page 44 - Suncor AR English

SEGMENT RESULTS AND ANALYSIS

REFINING AND MARKETING
inland crude sources, compared to higher cost

coastal crudes.

• The company completed a rail offloading facility
located adjacent to the Montreal refinery and entered

into firm commitments for rail cars and terminalling
services to increase inland crude supply to the Montreal

refinery.

Strategy and Investment Update
Suncor continues to invest in profitable growth and

optimize overall integration, including market access
initiatives to supply the Montreal refinery with discounted

North American crudes. Rail transportation to Quebec
commenced in the fourth quarter of 2013 and is expected

to increase to approximately 35,000 bbls/d of inland crude 2013 Highlights
by the first quarter of 2014. Suncor has also started a
• The refining and marketing segment continued to
project to modify the hydrocracking unit at the Montreal deliver value by generating more than $2 billion in
refinery, which is expected to improve energy efficiency
operating earnings for the second consecutive year,
and product yield, by 2015, and contribute to the through integration and strong reliability in 2013.
company’s integration strategies. Suncor continues to
evaluate further investment opportunities to increase the • With 460,000 bbls/d of crude processing capacity in

heavy crude processing capability at the Montreal refinery, 2013, the refining operations sheltered the company
in addition to actively monitoring the regulatory process for from the volatility in crude differentials by optimizing

future pipeline access.
the profit realized on the majority of Suncor’s upstream
production.
Suncor’s Petro-Canada branded outlets continue to be a
leading retailer by market share in major urban areas of • Building on the nameplate capacity increases at the

Canada. Increased competition and softening demand in Edmonton, Sarnia and Commerce City refineries in
key retail markets are expected to be offset by growth in 2012 and 2013, the company again increased the

wholesale channels. Refining and Marketing will continue nameplate capacity of the Edmonton refinery as a
to leverage the strong brand to increase non-petroleum result of continuous reliability improvements to

revenues through the company’s network of convenience 142,000 bbls/d as at January 1, 2014.
stores and car washes, and expand the lubricants product
• Overall refinery utilization reached 94%, while planned
offering, including global expansion in the U.S., Europe maintenance activities were completed at each refinery
and China.
in 2013.

• Suncor continued to maximize value by sourcing
approximately 70% of its refining feedstock from

Financial Highlights

Year ended December 31 ($ millions)
2013
2012
2011

Operating revenues
26 658 26 220 25 713

Net earnings
2 022
2 137
1 726

Operating earnings(1)
.......................................................................................................................................................................................................................................................
Refining and Product Supply 1 758 1 877 1 413
.......................................................................................................................................................................................................................................................
Marketing 264 275 313

2 022 2 152 1 726

Cash flow from operations(1) 2 618
3 138
2 574

(1) Non-GAAP financial measures. Operating earnings are reconciled to net earnings below. See the Advisories – Non-GAAP Financial Measures section of
this MD&A.

40 SUNCOR ENERGY INC. ANNUAL REPORT 2013