Suncor Energy Inc. (NYSE: SU) shares have advanced more than 25% since the beginning of October 2021, and the current price stands at $26.6.
Suncor doubled its dividend
Suncor Energy primarily focuses on developing petroleum resource basins in Canada’s Athabasca oil sands, but the company also trades in crude oil, natural gas, byproducts, refined products, and power.
Suncor Energy shares are advancing last several weeks; the company reported strong third-quarter results in October, and the board of directors declared a C$0.42/quarterly share dividend which represents a 100% increase from the prior dividend of C$0.21.
For the third quarter, Suncor Energy has returned more than C$1 billion to shareholders in the form of C$310 million in dividends and C$700 million in share repurchases.
It is also important to mention that the board of directors announced the decision to boost the share repurchase program to approximately 7% of Suncor’s public float.
Total revenue has increased by 58% Y/Y to C$10.21 billion in the third quarter, slightly below expectations, while the GAAP earnings per share were C$0.59. Mark Little, CEO of Suncor Energy, added:
This performance marked the third-best set of Q3 results for the downstream and its history. Year-to-date, we have reduced the company’s net debt balance by more than C$3 billion and returned over C$2.6 billion to shareholders in the forms of dividends and buybacks by allocating over 70% of our funds from operations, including the tax refund received earlier this quarter.
Suncor Energy continues to invest in projects to drive increased cash flow, but surging COVID-19 cases could hit demand for crude oil again.
Austria imposed a nationwide lockdown from this Monday, and according to Germany’s Health Minister Jens Spahn,