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Suncor pledge to refocus on oil production further proves need for emissions cap: Guilbeault – Financial Post

Published

1 year ago

August 30, 2023

Harry Miller

Environment minister reacts to comments made by Rich Kruger

The Canadian Press

Mia Rabson

Published Aug 29, 2023 • Last updated 11 hours ago • 3 minute read

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Environment Minister Steven Guilbeault says he is more convinced than ever of the need to regulate emissions in the oil and gas industry. Guilbeault is shown during an interview at the Liberal Cabinet retreat in Charlottetown, Tuesday, Aug. 22, 2023. Photo by Darren Calabrese/The Canadian Press

OTTAWA — Recent statements by the chief executive officer of a major oilsands company further the case for federal regulations to cap greenhouse-gas emissions in the oil and gas sector, Environment Minister Steven Guilbeault said.

In an interview with The Canadian Press, Guilbeault called the Aug. 15 comments by Suncor Energy Inc. chief executive Rich Kruger “disappointing,” particularly in the middle of a summer when “tens of thousands of Canadians” were forced to flee wildfires and global temperatures hit record highs in July.

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“To see the leader of a great Canadian company say that he is basically disengaging from climate change and sustainability, that he’s going to focus on short-term profit, it’s all the wrong answers,” Guilbeault said.

“If I was convinced before that we needed to do regulation, I am even more convinced now.”

This fall, Guilbeault intends to publish draft regulations to cap emissions from oil and gas production and then force them downward over time. Oil and gas contributed 28 per cent of Canada’s total emissions in 2021, and the oilsands alone account for 13 per cent.

Guilbeault hasn’t yet said exactly what the first cap will be, but the Emissions Reduction Plan published in 2022 included a cut of more than 40 per cent to oil and gas emissions by 2030.

Kruger, who only took over as Suncor chief executive in April, told investors during Suncor’s second-quarter results conference call that the company had a “disproportionate” focus on the longer-term energy transition to low-emitting and renewable fuels.

“Where we stand is we judge that our current strategic framework … is insufficient in terms of what it takes to win,” he said, according to a transcript of the call posted on the company’s website.

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That included, he said, a “lack of emphasis on today’s business drivers.”

“Today, we win by creating value through our large integrated asset base underpinned by oilsands,” he said.

He promised a “revised direction and tone” focused more on the immediate financial opportunities in the oilsands.

In that same call, Suncor reported second-quarter earnings of $1.9 billion, down from $4 billion in the second quarter of 2022, when oil prices soared following Russia’s invasion in Ukraine.

Kruger said the company remained committed to the Pathways Alliance, a consortium of six oilsands companies working together to install carbon-capture technology and reach net-zero emissions by 2050.

Net-zero is the term used to describe a situation where any remaining greenhouse-gas emissions produced are captured by technology or nature. Carbon capture is an emerging technology that traps emissions and funnels them back underground.

Pathways executives have long said that they want to contribute to Canada’s climate targets, but that the federal timeline for cutting their emissions was unrealistic.

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Both Suncor and Pathways have been approached for comment for this story.

Kruger’s comments come almost a year after his company announced it would sell off its wind and solar power assets, ending its two-decade long foray into the renewable energy business. Earlier this year, Suncor expanded its oilsands operations when it bought the Fort Hills oilsands mine from Teck Resources Ltd. and TotalEnergies SA.

Guilbeault said the federal government isn’t asking the oil and gas sector to do more than its fair share, and is not singling it out. He noted zero-emission vehicle regulations being finalized now require one in five new vehicles sold to be electric by 2026, and bar the sale of new combustion engine cars and trucks in 2035.

Draft regulations to eliminate emissions from Canada’s electricity sector were published earlier in August and are still in the comment period.

The oil and gas cap regulations were expected already, but Guilbeault acknowledged they have been delayed.

“It is a complex piece of regulation,” he said.

But the minister said they are coming, and industry has to do its part.

“I don’t think in 2023 you can be a good corporate citizen and not play your role,” he said.

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Business

TC Energy cuts cost estimate for Southeast Gateway pipeline project in Mexico

Published

1 day ago

November 7, 2024

Anne Joseph

CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.

It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.

The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.

Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.

TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.

The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:TRP)

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BCE reports Q3 loss on asset impairment charge, cuts revenue guidance

Published

1 day ago

November 7, 2024

Anne Joseph

BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.

The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.

On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.

“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”

Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.

BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.

The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.

BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.

It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.

The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”

Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:BCE)

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Canada Goose reports Q2 revenue down from year ago, trims full-year guidance

Published

1 day ago

November 7, 2024

Anne Joseph

TORONTO – Canada Goose Holdings Inc. trimmed its financial guidance as it reported its second-quarter revenue fell compared with a year ago.

The luxury clothing company says revenue for the quarter ended Sept. 29 totalled $267.8 million, down from $281.1 million in the same quarter last year.

Net income attributable to shareholders amounted to $5.4 million or six cents per diluted share, up from $3.9 million or four cents per diluted share a year earlier.

On an adjusted basis, Canada Goose says it earned five cents per diluted share in its latest quarter compared with an adjusted profit of 16 cents per diluted share a year earlier.

In its outlook, Canada Goose says it now expects total revenue for its full financial year to show a low-single-digit percentage decrease to low-single-digit percentage increase compared with earlier guidance for a low-single-digit increase.

It also says it now expects its adjusted net income per diluted share to show a mid-single-digit percentage increase compared with earlier guidance for a percentage increase in the mid-teens.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:GOOS)

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