Page 51 - Suncor AR English

after-tax impairment charges of $563 million against assets Refining and Marketing cash flow from operations was

in Syria, Libya and North America Onshore, partially offset $534 million in the fourth quarter of 2013, compared to
by the recognition of after-tax risk mitigation proceeds of $634 million in the fourth quarter of 2012, and decreased

$223 million related to the company’s assets in Syria. Net primarily due to incremental current income tax expense
earnings for the fourth quarter of 2012 included a net related to the company’s Canadian operations recorded in

after-tax recovery of $177 million related to an impairment the quarter.
reversal for assets in Syria, which was almost fully offset by
Overall refinery utilization decreased to 91% in the fourth
after-tax charges of $172 million including impairments quarter of 2013, compared to 96% in the fourth quarter
against assets in North America Onshore and East Coast
of 2012, due to planned maintenance at both the Sarnia
Canada, and a provision in North America Onshore for and Montreal refineries and unplanned maintenance at the
estimated future commitments relating to unutilized
Edmonton refinery in the fourth quarter of 2013. However,
pipeline capacity.
the impact of lower throughput was partially offset by

Exploration and Production operating earnings were
more favourable product mix, as mix in the prior year
$239 million in the fourth quarter of 2013, compared to quarter was adversely impacted by unplanned maintenance

$143 million in the fourth quarter of 2012. Operating at the Sarnia refinery.
earnings increased primarily due to higher price realizations
and lower royalty expenses, partially offset by lower
Corporate, Energy Trading and Eliminations
production volumes due to the sale of the conventional The net loss for Corporate, Energy Trading and Eliminations
natural gas business and the shut-in of Libya production.
in the fourth quarter of 2013 was $383 million, compared
Cash flow from operations was $552 million for the fourth to a net loss of $135 million in the fourth quarter of 2012.
In the fourth quarter of 2013, the Canadian dollar
quarter of 2013, compared to $529 million for the fourth
quarter of 2012, and increased due to the same factors weakened in relation to the U.S. dollar, resulting in an
after-tax unrealized foreign exchange loss on U.S. dollar
that impacted operating earnings, partially offset by
incremental current income tax expense relating to the denominated debt of $259 million, compared to
$80 million in the prior year quarter.
company’s Canadian operations recorded in the fourth
quarter of 2013.
Operating loss for Corporate, Energy Trading and

Production volumes were 111.6 mboe/d in the fourth Eliminations in the fourth quarter of 2013 was
$124 million, compared to a $55 million loss in the fourth
quarter of 2013, compared to 177.8 mboe/d in the fourth
quarter of 2012. The decrease in production volumes was quarter of 2012. The increase in operating loss was due
primarily to losses on the company’s crude trading
due mainly to the sale of the conventional natural gas
business, the shut-in of production in Libya and planned strategies in the fourth quarter of 2013, compared to gains
in the prior year quarter, higher share-based compensation
maintenance programs, partially offset by increased
production at Buzzard due to strong reliability and reservoir expense in the quarter, higher financing expense associated
with additional capital leases and lower capitalized interest,
performance in the fourth quarter of 2013 and more
planned maintenance activity in the prior year quarter.
and incremental expenditures relating to a company-wide
process improvement initiative.

Refining and Marketing
Corporate, Energy Trading and Eliminations cash flow from

For the fourth quarter of 2013, Refining and Marketing net operations increased to $154 million in the fourth quarter
and operating earnings were $458 million, compared to of 2013, compared to cash flow used in operations of

net and operating earnings of $450 million for the fourth $25 million in the fourth quarter of 2012, due primarily to
quarter of 2012. The increase was due to significantly realized gains on trading strategies in Energy Trading and

wider inland crude differentials that were partially offset by incremental current income tax recoveries related to the
lower benchmark crack spreads resulting from the company’s Canadian operations recorded in the quarter.

narrowing of the WTI to Brent differential and lower
throughput volumes.

SUNCOR ENERGY INC. ANNUAL REPORT 2013 47