Page 55 - Suncor AR English

Significant or Unusual Items Impacting Net Earnings
restoration of the Voyageur site and contract

Trends in Suncor’s quarterly earnings and cash flow from cancellations.
operations are driven primarily by production volumes,
•
The third quarter of 2013 included an after-tax gain of
which can be significantly impacted by major maintenance $130 million relating to the sale of the company’s
events – such as the maintenance that occurred at
conventional natural gas business.
Upgrader 1 in Oil Sands in the second quarter of 2013 and
the maintenance that occurred at Terra Nova in the fourth •
The fourth quarter of 2012 included an after-tax
impairment charge of $1.487 billion relating to the
quarter of 2013 and at many Exploration and Production
assets in the third and fourth quarters of 2012, as well as Voyageur upgrader project. Given Suncor’s view of the
challenging economic environment, the company
third-party outages that impacted Oil Sands in the second,
third and fourth quarters of 2013.
performed an impairment test based on an assessment
of expected future net cash flows.
Trends in Suncor’s quarterly earnings and cash flow from
•
The fourth quarter of 2012 included an after-tax
operations are also affected by changes in commodity
prices, refining crack spreads and foreign exchange rates, impairment reversal of $177 million of the impairment
charges recorded against the company’s assets in Syria
as described in the Financial Information – Business
Environment – Economic Sensitivities section of this MD&A.
in the second quarter of 2012, due to a revised
assessment of the net recoverable value of the
In addition to the impacts of changes in production
volumes and business environment, net earnings over the underlying assets following the receipt of risk
mitigation proceeds.
last eight quarters were affected by the following events or
significant one-time adjustments:
•
The fourth quarter of 2012 included total after-tax
impairment charges of $172 million for certain
• The fourth quarter of 2013 included after-tax
exploration, development and production assets in the
impairment charges of $563 million in the Exploration Exploration and Production segment, and a provision in
and Production segment against its assets in Syria,
North America Onshore for estimated future
Libya and North America Onshore. Concurrent with the commitments relating to unutilized pipeline capacity.
impairment of its Syrian assets, the company
•
The second quarter of 2012 included after-tax
recognized after-tax risk mitigation proceeds of
$223 million, previously recorded as a long-term impairment charges and write-offs of $694 million
against assets in Syria, which reflected the shut-in of
provision.
production due to political unrest and international
• The first and fourth quarters of 2013 included a net sanctions. The company ceased recording all production
after-tax charge of $58 million as a result of not
and revenue from its Syrian assets in the fourth quarter
proceeding with the Voyageur upgrader project, which of 2011.
included costs related to decommissioning and

SUNCOR ENERGY INC. ANNUAL REPORT 2013 51