FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the month of: January 2002 Commission File Number: 1-12384
SUNCOR ENERGY INC.
(Name of registrant)
112 FOURTH AVENUE S.W.
P.O. BOX 38
CALGARY, ALBERTA
CANADA, T2P 2V5
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
Form 20-F Form 40-F X
--------- ---------
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the SEC
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes No X
--------- ---------
If "Yes" is marked, indicate the number assigned to the registrant in connection
with Rule 12g3-2(b):
N/A
EXHIBIT INDEX
EXHIBIT DESCRIPTION OF EXHIBIT
--------------------------------------------------------------------------------
EXHIBIT 1 EARNINGS RELEASE DATED JANUARY 17, 2002
RE: 2001 FOURTH QUARTER RESULTS
EXHIBIT 1
FOR IMMEDIATE RELEASE
JANUARY 17, 2002
SUNCOR ENERGY ENDS 2001 WITH PROJECT MILLENNIUM COMPLETE, INCREASED PRODUCTION
AND EARNINGS
(All financial figures are in Canadian dollars unless noted otherwise. Natural
gas converts to oil at a 6:1 ratio. Financial figures for the year ended
December 31, 2001 and quarterly figures are unaudited.)
CALGARY, ALBERTA -- Suncor Energy Inc. today announced it set a new company
record for oil production and recorded unaudited consolidated earnings for 2001
of $388 million ($1.63 per common share), up from $377 million in 2000 ($1.58
per common share). Cash flow from operations for 2001 was $831 million ($3.52
per common share), compared with $958 million ($4.11 per common share) in 2000.
Suncor's daily average production rate was 156,600 barrels of oil equivalent
(BOE), compared with 154,400 BOE per day the year before.
"The year 2001 was a landmark year for Suncor in that we completed Millennium, a
project that is delivering increased production for Suncor and serves as a
foundation for our long-term growth strategy," said Rick George, president and
chief executive officer. "We delivered on our objective of doubling production
capacity to 225,000 barrels per day by year end."
Suncor expects production at the oil sands plant to average about 210,000
barrels per day in 2002 as the new Millennium facilities are fully integrated
with base operations. Project Millennium was a four-year expansion of Suncor's
oil sands operation with a $3.4 billion capital cost.
The increase in production, combined with higher natural gas commodity prices
and retail margins earlier in the year, contributed to the year-over-year
increase in earnings. Suncor's cash flow declined from 2000 primarily as a
result of the cost of Project Millennium start-up.
"With Project Millennium behind us, Suncor can focus on getting back to basics
in 2002," said George. "We'll focus our efforts on strengthening our business by
delivering steady, reliable production and reducing operating costs. And we'll
also seek opportunities to debottleneck our oil sands operation and add
additional oil production. The company's growth plans will also stay high on our
agenda."
George said Suncor will continue construction of its Firebag In-Situ Oil Sands
Project and further plans to expand its oil sands business up to 550,000 barrels
per day over the next decade.
Another key priority for Suncor is to reduce its $3.1 billion debt. As part of
that effort, Suncor has hedged 40 per cent of its 2002 production to mitigate
the impact of an uncertain crude oil market on the company's ability to reduce
debt.
-------------------------------------------------------------------------------------------------------------------
EARNINGS COMPONENTS Year ended December 31
($ millions after income taxes) 2001 2000*
-------------------------------------------------------------------------------------------------------------------
OPERATIONAL EARNINGS 433 414
-------------------------------------------------------------------------------------------------------------------
NATURAL GAS
Asset divestments 4 69
Restructuring 1 (30)
-------------------------------------------------------------------------------------------------------------------
STUART OIL SHALE PROJECT
Partial asset write-down (3) (80)
-------------------------------------------------------------------------------------------------------------------
OIL SANDS
Start-up expenses - Project Millennium (90) (9)
-------------------------------------------------------------------------------------------------------------------
ADJUSTMENT RELATED TO REVALUATION OF FUTURE INCOME TAX BALANCES 43 13
-------------------------------------------------------------------------------------------------------------------
NET EARNINGS 388 377
* The determination of operational earnings for 2000 has been
restated to be consistent with the treatment and presentation in
2001 of the "adjustment related to revaluation of future income tax
balances" noted above.
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
CASH FLOW COMPONENTS Year ended December 31
($ millions) 2001 2000
-------------------------------------------------------------------------------------------------------------------
OPERATIONAL CASH FLOW 1,061 1,009
-------------------------------------------------------------------------------------------------------------------
NATURAL GAS
Restructuring costs (1) (9)
-------------------------------------------------------------------------------------------------------------------
OIL SANDS
Start-up expenses - Project Millennium (141) (15)
Overburden removal - Project Millennium (88) (27)
-------------------------------------------------------------------------------------------------------------------
CASH FLOW FROM OPERATIONS 831 958
-------------------------------------------------------------------------------------------------------------------
OPERATING HIGHLIGHTS DURING 2001
OIL SANDS
Oil Sands production hit a new record in 2001, averaging 123,200 barrels per
day, up approximately eight per cent from 2000. Cash operating costs at Oil
Sands increased during the year to $17.00 per barrel, including Project
Millennium start-up costs.
-------------------------------------------------------------------------------------------------------------------
OIL SANDS CASH OPERATING COSTS Year ended December 31
(dollars per barrel) 2001 2000
-------------------------------------------------------------------------------------------------------------------
Base plant 11.90 12.55
-------------------------------------------------------------------------------------------------------------------
Start-up expenses - Project Millennium 5.10 1.00
-------------------------------------------------------------------------------------------------------------------
TOTAL CASH OPERATING COSTS 17.00 13.55
-------------------------------------------------------------------------------------------------------------------
NATURAL GAS
Suncor's Natural Gas business production averaged 33,400 BOE per day, down from
40,500 BOE per day in 2000. Although production decreased, a reflection of asset
divestments in 2000, the business benefited from increased commodity prices that
contributed to improved operational earnings.
SUNOCO
Sunoco, Suncor's refining and marketing arm, recorded higher operational
earnings in 2001 that reflected the higher margins from industrial/commercial
sales channels, stronger retail natural gas margins, and continued growth in
sales volume. Refining margins were lower compared to last year.
FOURTH QUARTER RESULTS
Suncor's earnings for the fourth quarter 2001 were $26 million ($0.09 per common
share), compared to $111 million ($0.47 per common share) in the fourth quarter
of 2000.
Operational earnings in the fourth quarter were $71 million, compared to $108
million in the fourth quarter of 2000. This $37 million decrease in operational
earnings reflects lower crude oil and natural gas prices, lower refining margins
and a higher anticipated proportion of lower value (sour crude oil) production
associated with the start-up of Project Millennium. Prices and margins remained
volatile in light of weakening demand coinciding with the global economic
slowdown, events of September 11 and warmer weather. Partially offsetting these
factors were lower crude oil hedging losses and higher oil production.
Operational cash flow was $242 million, compared with $236 million last year.
Revenues in the fourth quarter of 2001 were $883 million, compared to $927
million in the fourth quarter of 2000.
-----------------------------------------------------------------------------------------------------------------
EARNINGS COMPONENTS Fourth Quarter
($ millions after income taxes) 2001 2000*
-----------------------------------------------------------------------------------------------------------------
OPERATIONAL EARNINGS 71 108
-----------------------------------------------------------------------------------------------------------------
NATURAL GAS
Asset divestments 4 --
-----------------------------------------------------------------------------------------------------------------
OIL SANDS
Start-up expenses - Project Millennium (49) (3)
-----------------------------------------------------------------------------------------------------------------
ADJUSTMENT RELATED TO REVALUATION OF FUTURE INCOME TAX BALANCES - 6
-----------------------------------------------------------------------------------------------------------------
NET EARNINGS 26 111
* The determination of operational earnings for 2000 has been
restated to be consistent with the treatment and presentation
in 2001 of the "adjustment related to revaluation of future income
tax balances" in 2001 noted above.
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
CASH FLOW COMPONENTS Fourth Quarter
($ millions) 2001 2000
-----------------------------------------------------------------------------------------------------------------
OPERATIONAL CASH FLOW 242 236
-----------------------------------------------------------------------------------------------------------------
OIL SANDS
Start-up expenses - Project Millennium (76) (5)
Overburden removal - Project Millennium (33) (15)
-----------------------------------------------------------------------------------------------------------------
CASH FLOW FROM OPERATIONS 133 216
-----------------------------------------------------------------------------------------------------------------
OIL SANDS
For the fourth quarter of 2001, Oil Sands recorded earnings of $37 million, down
from fourth quarter 2000 earnings of $68 million. Operational earnings were $86
million, before the impact of start-up expenses associated with Project
Millennium, compared to operational earnings of $71 million in the same period
in 2000. The $15 million increase in operational earnings primarily reflects
higher sales volumes from the Project Millennium facilities and lower hedging
losses. The expenses associated with the start-up of Project Millennium have
been excluded from operational earnings. If the incremental start-up volumes had
been excluded from the determination of operational earnings, it is estimated
that operational earnings would have been lower compared to the fourth quarter
of 2000. Partially offsetting the above favourable factors were lower commodity
prices and the sale of proportionately more lower-value sour oil products.
Oil Sands production during the fourth quarter averaged 153,000 barrels of oil
per day, compared to 110,000 barrels per day during the same period in 2000. The
production increase was the result of Project Millennium start-up volumes,
offset by production losses in October that occurred as a result of an
unscheduled seven-day maintenance shutdown.
Base plant cash operating costs for the fourth quarter were $9.35 per barrel,
before start-up expenses associated with Project Millennium. Not all of the
expenses associated with the additional volumes from Millennium are included in
the $9.35 per barrel cash cost. As a result, the $9.35 per barrel cash cost is
not indicative of cash costs in the future.
-------------------------------------------------------------------------------------------------------------
OIL SANDS CASH OPERATING COSTS Fourth Quarter
(dollars per barrel) 2001 2000
-------------------------------------------------------------------------------------------------------------
Base plant 9.35 14.50
-------------------------------------------------------------------------------------------------------------
Start-up expenses - Project Millennium 8.10 1.90
-------------------------------------------------------------------------------------------------------------
TOTAL CASH OPERATING COSTS 17.45 16.40
-------------------------------------------------------------------------------------------------------------
NATURAL GAS
Natural Gas reported $12 million in earnings for the fourth quarter of 2001,
compared with $31 million in the same period in 2000. Operational earnings in
the fourth quarter of 2001 declined to $8 million, compared to $31 million for
the fourth quarter of 2000. Gas prices in the fourth quarter averaged $3.10 per
thousand cubic feet, 61 per cent lower than in the fourth quarter of 2000.
Although production was three per cent lower in the fourth quarter of 2001,
compared to the fourth quarter of 2000, Natural Gas exited December with a
production rate that was slightly higher than the previous year.
Finding and development costs (excluding acquisitions) for the five-year period
ended 2001 were $11.30 per BOE, compared to $7.70 per BOE for the five-year
period ending 2000. Natural Gas activities over the last two years have been
directed towards bringing non-producing reserves to the producing stage in
support of the business's 2002 production goal of an average of 180 to 190 mmcf
per day.
SUNOCO
Sunoco had breakeven earnings in the fourth quarter of 2001, compared to
earnings of $23 million in the fourth quarter of 2000. Operational earnings were
breakeven for the fourth quarter of 2001, compared to operational earnings of
$17 million in the fourth quarter 2000. The Rack-Back business had an
operational loss of $8 million in the quarter, compared to operational earnings
of $16 million in the fourth quarter of 2000, reflecting a 36 per cent decline
in refining margins. The quarter was also impacted by a two-week extension of a
planned turnaround at the Sarnia Refinery. Sunoco's Rack-Forward business had
operational earnings of $8 million in the fourth quarter 2001, up from $1
million in the same period last year.
CORPORATE
The corporate centre had costs of $23 million in the fourth quarter of 2001,
compared to $11 million in the fourth quarter of 2000. This increase reflects
higher interest costs, an increase in funding to the Suncor Energy Foundation
and higher compensation costs including the effect associated with a higher
share price that increased incentive plan costs.
On January 10, 2002, Suncor filed a US$1 billion unallocated base shelf
prospectus with securities regulators in Canada and the United States for the
issuance of securities. Suncor will monitor the debt capital markets for
opportunities to refinance bank debt with longer-term debt.
Suncor Energy is an integrated Canadian energy company. Suncor's Oil Sands
business, located near Fort McMurray, AB, mines and upgrades oil sand into
custom-blended refinery feedstock and premium transportation fuels. Suncor is
also a conventional natural gas producer in western Canada and operates a
refining and marketing business in Ontario under the Sunoco brand. At the same
time as Suncor meets today's energy needs, the company invests in alternative
and renewable energy for the future. Suncor's common shares and preferred
securities are listed for trading on the Toronto and New York stock exchanges.
CERTAIN STATEMENTS IN THIS NEWS RELEASE ARE FORWARD-LOOKING, INCLUDING
STATEMENTS ABOUT SUNCOR'S STRATEGY FOR GROWTH, EXPECTED EXPENDITURES, COMMODITY
PRICES, COSTS, SCHEDULES AND OPERATING OR FINANCIAL RESULTS. THESE STATEMENTS
MAY BE IDENTIFIED BY WORDS LIKE "EXPECTS," "PLANS," AND SIMILAR EXPRESSIONS.
THESE STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AS THEY ARE BASED ON A
CURRENT FACTS AND ASSUMPTIONS AND INVOLVE RISKS AND UNCERTAINTIES. SUNCOR'S
ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY ITS
FORWARD LOOKING STATEMENTS AS A RESULT OF KNOWN AND UNKNOWN RISKS, UNCERTAINTIES
AND OTHER FACTORS. THESE INCLUDE: CHANGES IN THE GENERAL ECONOMIC, MARKET AND
BUSINESS CONDITIONS; FLUCTUATIONS IN SUPPLY AND DEMAND FOR SUNCOR'S PRODUCTS;
FLUCTUATIONS IN COMMODITY PRICES;
FLUCTUATIONS IN CURRENCY EXCHANGE RATES; SUNCOR'S ABILITY TO RESPOND TO CHANGING
MARKETS AND ACCESS THE CAPITAL MARKETS; THE ABILITY OF SUNCOR TO RECEIVE TIMELY
REGULATORY APPROVALS; THE INTEGRITY AND RELIABILITY OF SUNCOR'S CAPITAL ASSETS;
THE CUMULATIVE IMPACT OF OTHER RESOURCE DEVELOPMENT PROJECTS; SUNCOR'S ABILITY
TO COMPLY WITH CURRENT AND FUTURE ENVIRONMENTAL LAWS; THE ACCURACY OF SUNCOR'S
PRODUCTION ESTIMATES AND PRODUCTION LEVELS AND ITS SUCCESS AT EXPLORATION AND
DEVELOPMENT DRILLING AND RELATED ACTIVITIES; THE MAINTENANCE OF SATISFACTORY
RELATIONSHIPS WITH UNIONS, EMPLOYEE ASSOCIATIONS, JOINT VENTURES, SUPPLIERS AND
CUSTOMERS; COMPETITIVE ACTIONS OF OTHER COMPANIES, INCLUDING INCREASED
COMPETITION FROM OTHER OIL AND GAS COMPANIES OR FROM COMPANIES WHICH PROVIDE
ALTERNATIVE SOURCES OF ENERGY; THE UNCERTAINTIES RESULTING FROM POTENTIAL DELAYS
OR CHANGES IN PLANS WITH RESPECT TO EXPLORATION OR DEVELOPMENT PROJECTS OR
CAPITAL EXPENDITURES; ACTIONS BY GOVERNMENTAL AUTHORITIES INCLUDING INCREASING
TAXES, CHANGES IN ENVIRONMENTAL AND OTHER REGULATIONS; THE ABILITY AND
WILLINGNESS OF PARTIES WITH WHOM SUNCOR HAS MATERIAL RELATIONSHIPS TO PERFORM
THEIR OBLIGATIONS TO SUNCOR; THE OCCURRENCE OF UNEXPECTED EVENTS SUCH AS FIRES,
BLOWOUTS, FREEZE-UPS, EQUIPMENT FAILURES AND OTHER SIMILAR EVENTS AFFECTING
SUNCOR OR OTHER PARTIES WHOSE OPERATIONS OR ASSETS DIRECTLY OR INDIRECTLY AFFECT
SUNCOR; AND THE SUCCESSFUL AND TIMELY IMPLEMENTATION OF ITS GROWTH PROJECTS
INCLUDING THE FIREBAG IN-SITU OIL SANDS PROJECT AND PROJECT VOYAGEUR. IN
ADDITION, PROJECT VOYAGEUR WILL REQUIRE REGULATORY APPROVAL TO INCREASE
UPGRADING CAPACITY, ACCELERATE OIL SANDS MINING AND EXPAND IN-SITU DEVELOPMENT,
AS WELL AS FAVOURABLE FISCAL AND MARKET CONDITIONS AND THE APPROVAL OF SUNCOR'S
BOARD OF DIRECTORS. SEE SUNCOR'S CURRENT ANNUAL INFORMATION FORM, ANNUAL REPORT
AND INTERIM REPORTS AND OTHER DOCUMENTS SUNCOR FILES WITH SECURITIES REGULATORY
AUTHORITIES, FOR FURTHER DETAILS.
-30-
For more information about Suncor, visit our website at www.suncor.com or
contact: John Rogers (403) 269-8670.
SUNCOR ENERGY INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
For the years
Fourth quarter ended December 31
($ millions) 2001 2000 2001 2000
------------- -------------- ------------ -------------
REVENUES (note 2) 883 927 3,995 3,388
------------- -------------- ------------ -------------
EXPENSES
Purchases of crude oil and products (note 2) 291 232 1,391 807
Operating, selling and general 273 271 1,010 918
Exploration 15 12 22 53
Royalties 15 65 134 199
Taxes other than income taxes 93 92 367 361
Depreciation, depletion and amortization 101 94 360 365
(Gain) loss on disposal of assets (9) 1 (7) (148)
Start-up expenses - Project Millennium (note 3) 76 5 141 15
Write off of oil shale assets (note 5) - - 48 125
Restructuring - - (2) 65
Interest 3 2 18 8
------------- -------------- ------------ -------------
858 774 3,482 2768
------------- -------------- ------------ -------------
EARNINGS BEFORE INCOME TAXES 25 153 513 620
------------- -------------- ------------ -------------
PROVISION FOR INCOME TAXES
Current (12) 7 4 45
Future (note 6) 11 35 121 198
------------- -------------- ------------ -------------
(1) 42 125 243
------------- -------------- ------------ -------------
NET EARNINGS 26 111 388 377
Dividends on preferred securities (5) (7) (26) (26)
------------- -------------- ------------ -------------
Net earnings attributable to
common shareholders 21 104 362 351
------------- -------------- ------------ -------------
PER COMMON SHARE (dollars)
Net earnings attributable to
common shareholders (Note 7)
- basic 0.09 0.47 1.63 1.58
------------- -------------- ------------ -------------
- diluted 0.09 0.46 1.61 1.57
------------- -------------- ------------ -------------
Cash dividends 0.085 0.085 0.34 0.34
------------- -------------- ------------ -------------
(See accompanying notes)
SUNCOR ENERGY INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
DECEMBER 31 December 31
($ millions) 2001 2000
-------------- -------------
ASSETS
Current assets
Cash and cash equivalents 1 21
Accounts receivable 306 407
Income taxes recoverable 28 -
Future income taxes 29 45
Inventories 258 192
-------------- -------------
Total current assets 622 665
-------------- -------------
Property, plant and equipment, net 7,141 5,883
Deferred charges and other 199 166
Future income taxes 132 119
-------------- -------------
Total assets 8,094 6,833
============== =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings 31 64
Accounts payable 351 424
Accrued liabilities 321 285
Income taxes payable - 15
Future income taxes 28 9
Taxes other than income taxes 42 39
Current portion of long-term borrowings - 1
-------------- -------------
Total current liabilities 773 837
-------------- -------------
Long-term borrowings 3,113 2,192
Accrued liabilities and other 251 252
Future income taxes 1,180 1,080
Shareholders' equity (see below) 2,777 2,472
-------------- -------------
Total liabilities and shareholders' equity 8,094 6,833
============== =============
Shareholders' equity: Number Number
-------------- ------------
Preferred securities 17,540,000 514 17,540,000 514
Share capital 222,978,245 555 221,900,579 537
Retained earnings 1,708 1,421
-------------- -------------
2,777 2,472
============== =============
(See accompanying notes)
SUNCOR ENERGY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
For the years
Fourth quarter ended December 31
($ millions) 2001 2000 2001 2000
------------- ------------ ----------- -----------
OPERATING ACTIVITIES
Cash flow provided from operations (1), (2) 133 216 831 958
Decrease (increase) in operating working capital
Accounts receivable 42 (18) 101 (130)
Inventories (19) (31) (66) (31)
Accounts payable and accrued liabilities 33 76 (37) 93
Taxes payable (1) 7 (17) 18
------------- ------------ ----------- -----------
CASH PROVIDED FROM OPERATING ACTIVITIES 188 250 812 908
------------- ------------ ----------- -----------
CASH USED IN INVESTING ACTIVITIES (2) (400) (541) (1,680) (1,607)
------------- ------------ ----------- -----------
NET CASH DEFICIENCY BEFORE
FINANCING ACTIVITIES (212) (291) (868) (699)
------------- ------------ ----------- -----------
FINANCING ACTIVITIES
Increase (decrease) in short-term borrowings 9 39 (33) 32
Proceeds from issuance of long-term borrowings (Note 8) - - 500 -
Net increase (decrease) in other long-term borrowings 232 175 487 792
Issuance of common shares under stock option plan 1 1 15 9
Dividends paid on preferred securities (3) (12) (12) (48) (47)
Dividends paid on common shares (18) (17) (73) (71)
------------- ------------ ----------- -----------
CASH PROVIDED FROM FINANCING ACTIVITIES 212 186 848 715
------------- ------------ ----------- -----------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS - (105) (20) 16
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1 126 21 5
------------- ------------ ----------- -----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD 1 21 1 21
============= ============ =========== ===========
PER COMMON SHARE (dollars)
(1) Cash flow provided from operations 0.59 0.97 3.73 4.32
(3) Dividends paid on preferred securities (pre-tax) 0.05 0.05 0.21 0.21
------------- ------------ ----------- -----------
Cash flow provided from operations after deducting
dividends paid on preferred securities 0.54 0.92 3.52 4.11
--------------------------------------------------------------------------------------------------------------------------
(2) See Schedules of Segmented Data
(See accompanying notes)
SUNCOR ENERGY INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(unaudited)
Preferred Share Retained
($ millions) Securities Capital Earnings
---------------- -------------- ---------------
AT DECEMBER 31, 1999 514 524 1,070
Net earnings - - 377
Dividends paid on preferred securities - - (26)
Dividends paid on common shares - - (71)
Issued for cash under stock option plan - 9 -
Issued under dividend reinvestment plan - 4 (4)
Income taxes - impact of new standard - - 75
---------------- -------------- ---------------
AT DECEMBER 31, 2000 514 537 1,421
Net earnings - - 388
Dividends paid on preferred securities - - (26)
Dividends paid on common shares - - (72)
Issued for cash under stock option plan - 15 -
Issued under dividend reinvestment plan - 3 (3)
---------------- -------------- ---------------
AT DECEMBER 31, 2001 514 555 1,708
---------------- -------------- ---------------
(See accompanying notes)
COMMON SHARE INFORMATION
for the years ended December 31
2001 2000
--------------- ------------
Average number outstanding, weighted
monthly (thousands) 222,515 221,415
=============== ============
as at December 31
Share price at end of trading
Toronto Stock Exchange - $Canadian 52.40 38.30
=============== ============
New York Stock Exchange - $U.S. 32.90 25.70
=============== ============
Book value per common share - $Canadian 10.15 8.83
=============== ============
- $U.S. 6.37 5.89
=============== ============
Common share options outstanding 5,884,035 5,860,875
=============== ============
RATIOS
(unaudited)
as at December 31
Debt to debt plus shareholders' equity (%) 53.1 47.7
=============== ============
Net tangible asset coverage on long-term debt (times)
Before deduction of future income taxes 2.2 2.5
=============== ============
After deduction of future income taxes 1.9 2.1
=============== ============
for the years ended December 31
Debt to cash flow provided from operations (times) 3.8 2.3
=============== ============
Interest coverage on long-term debt (times)
Net earnings 3.7 5.6
=============== ============
Cash flow from operations 5.9 8.6
=============== ============
SUNCOR ENERGY INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
1. ACCOUNTING POLICIES
These financial statements follow the same accounting policies and methods
of computation as, and should be read in conjunction with, the most recent
annual financial statements, with the exception to the elimination of
intercompany sales as discussed in note 2.
2. ELIMINATION OF INTERCOMPANY SALES
During the first quarter of 2001, the company changed the methodology of
accounting for sales from its upstream operations (Oil Sands and Natural
Gas) to its downstream operations (Sunoco) from a deeming concept to the
actual tracking of product shipped. This change was made to better reflect
the current operational activities within the company. This prospective
change increased sales and other operating revenues and purchases of crude
oil by $128 million for the quarter and $473 million year to date and has
no impact on consolidated and segmented net earnings in the accompanying
financial statements.
3. START-UP EXPENSES
Start-up expenses represent pre-operating costs incurred in the
commissioning of the company's Oil Sands Project Millenium.
4. SUPPLEMENTAL INFORMATION
------------------------------------------------------------------------------------------------
For the years ended December 31
($ millions) 2001 2000
------------------------------------------------------------------------------------------------
Interest paid 129 104
------------------------------------------------------------------------------------------------
Income taxes paid 23 20
------------------------------------------------------------------------------------------------
Interest expense
------------------------------------------------------------------------------------------------
Long term interest cost 143 112
------------------------------------------------------------------------------------------------
Capitalized interest (125) (104)
------------------------------------------------------------------------------------------------
18 8
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Fourth quarter
------------------------------------------------------------------------------------------------
($ millions) 2001 2000
------------------------------------------------------------------------------------------------
Interest paid 18 23
------------------------------------------------------------------------------------------------
Income taxes paid - 5
------------------------------------------------------------------------------------------------
Interest expense
------------------------------------------------------------------------------------------------
Long term interest cost 36 34
------------------------------------------------------------------------------------------------
Capitalized interest (33) (32)
------------------------------------------------------------------------------------------------
3 2
------------------------------------------------------------------------------------------------
HEDGE POSITION UPDATE AS AT DECEMBER 31
-----------------------------------------------------------------------------------
QUANTITY $US (WTI) $CDN
-----------------------------------------------------------------------------------
2001
-----------------------------------------------------------------------------------
Crude Oil 47,500 bbl/day @ $18.75 $29.86*
-----------------------------------------------------------------------------------
$26.00 - $31.88 $41.41 - $50.77 *
10,000 bbl/day @ (costless collar) (costless collar)
-----------------------------------------------------------------------------------
2002
-----------------------------------------------------------------------------------
Crude Oil 41,000 bbl/day @ $20.06 $31.95 *
-----------------------------------------------------------------------------------
$21.00 - $26.19 $33.44 - $41.71 *
10,000 bbl/day @ (costless collar) (costless collar)
-----------------------------------------------------------------------------------
$22.00 - $26.28 $35.04 - $41.85*
12,000 bbl/day @ (costless collar) (costless collar)
-----------------------------------------------------------------------------------
$23.00 - $27.59 $36.63 - $43.94 *
18,000 bbl/day @ (costless collar) (costless collar)
-----------------------------------------------------------------------------------
$23.50 - $28.15 $37.43 - $44.83 *
3,000 bbl/day @ (costless collar) (costless collar)
-----------------------------------------------------------------------------------
2003
-----------------------------------------------------------------------------------
Crude Oil $21.00 - $25.74 $33.44 - $40.99 *
44,000 bbl/day @ (costless collar) (costless collar)
-----------------------------------------------------------------------------------
2004
-----------------------------------------------------------------------------------
Crude Oil 11,000 bbl/day @ $21.00 - $23.65 $33.44 - $37.66 *
(costless collar) (costless collar)
-----------------------------------------------------------------------------------
2005
-----------------------------------------------------------------------------------
Crude Oil 15,000 bbl/day @ $21.58 $34.37 *
-----------------------------------------------------------------------------------
* For presentation purposes, these $US hedges have been converted to a $CDN
equivalent based on the month end $US/$CDN exchange rate of 1.5926.
-----------------------------------------------------------------------------------
For 2001 and 2002, Suncor has in place U.S. dollar swaps in the amounts of
U.S. $312 million and $314 million respectively, at an exchange rate of
Canadian$ to U.S.$ of $0.71.
5. OIL SHALE PROJECT
Effective April 5, 2001, the company sold its interest in the Stuart Oil
Shale Project to joint venture co-owners Southern Pacific Petroleum NL and
Central Pacific Minerals NL(SPP/CPM). Under the terms of the purchase, the
company retains a 5% royalty interest in Stage 1 of the project and SPP/CPM
and Suncor retain world wide rights to the ATP technology. The company made
total payments as part of the transaction in the amount of $5 million
(AUD$7 million), which SPP/CPM will use to fund Stage 1 operating, capital
and transition costs. The company received 2.5 million SPP shares and
0.926 million CPM shares in consideration. SPP/CPM issued the company
12.5 million SPP share options and 4.6 million CPM share options,
exercisable over five years at a strike price of AUD$1.25 per SPP share
and AUD$3.38 per CPM share. Suncor has agreed to surrender its partly
paid Restricted Class shares (SPP 57 million and CPM 18.85 million) which
were acquired in 1997.
During the second quarter of 2001, the company wrote off the carrying value
of the capital assets and extinguished the long-term borrowings and accrued
interest. The earnings impact of the sale of our remaining interest in the
project was $48 million pre-tax, $3 million after-tax.
6. INCOME TAX RATE REDUCTION
Effective April 1, 2001, the Alberta and Ontario governments passed
legislation that reduced the provincial income tax rates. The future tax
balances for the company have been revalued at the new rates resulting in a
cumulative future tax recovery of $43 million. The new rates are reflected
in the tax provisions for the current period. The income tax rate reduction
does not affect the company's cash flow or liquidity.
7. EARNINGS PER COMMON SHARE
The following table provides a reconciliation between basic and diluted
earnings per common share:
---------------------------------------------------------------------------------------------------
Fourth quarter Years ended December 31
---------------------------------------------------------------------------------------------------
($ MILLIONS) 2001 2000 2001 2000
---------------------------------------------------------------------------------------------------
Net earnings attributable to common
shareholders 21 104 362 351
---------------------------------------------------------------------------------------------------
Dividends on preferred securities -** 6 -** 26***
---------------------------------------------------------------------------------------------------
Net earnings before deducting dividends on
preferred securities 21** 110*** 362** 377***
---------------------------------------------------------------------------------------------------
(MILLIONS OF COMMON SHARES )
---------------------------------------------------------------------------------------------------
Weighted-average number of common shares 223 222 222 221
---------------------------------------------------------------------------------------------------
Dilutive securities:
---------------------------------------------------------------------------------------------------
Options/shares issued under long term
incentive plan 3 2 3 2
---------------------------------------------------------------------------------------------------
Preferred securities converted -** 15*** -** 17***
---------------------------------------------------------------------------------------------------
Weighted-average number of diluted common
shares 226 239 225 240
---------------------------------------------------------------------------------------------------
(DOLLARS PER COMMON SHARE)
---------------------------------------------------------------------------------------------------
Basic earnings per share 0.09* 0.47* 1.63* 1.58*
---------------------------------------------------------------------------------------------------
Diluted earnings per share 0.09** 0.46*** 1.61** 1.57***
---------------------------------------------------------------------------------------------------
* Basic earnings per share is the net earnings attributable to common
shareholders divided by the weighted-average number of common shares.
** For the quarter and year ended December 31, 2001, diluted earnings per
share is the net earnings attributable to common shareholders divided
by the weighted-average number of diluted common shares. Dividends on
preferred securities of $5 million and $26 million respectively, and
preferred securities converted of 12 million shares and 13 million
shares respectively, have an anti-dilutive impact, therefore they are
not included in the calculation of diluted earnings per share.
*** For the quarter and year ended December 31, 2000, diluted earnings per
share is the net earnings before deducting dividends on preferred
securities divided by the weighted-average number of diluted common
shares.
8. ISSUANCE OF MEDIUM TERM NOTES
On August 21, 2001, the company issued $500 million of Series 2 Medium Term
Notes at an interest rate of 6.7%, which is payable semi-annually. The net
proceeds received were used to repay commercial paper and bank borrowings.
These notes will mature August 22, 2011.
9. RESTRUCTURING
In 2000, the carrying value of certain assets of the company's Natural Gas
business were written down to their net estimated recoverable amount and a
provision for estimated restructuring costs was recorded.
In the third quarter of 2001, some of these properties that were previously
written down were sold, realizing a gain before tax of $3 million.
Provisions for estimated restructuring costs were also increased by
$1 million before tax to reflect increased employee termination.
SUNCOR ENERGY INC.
SCHEDULES OF SEGMENTED DATA
(unaudited)
Corporate
Oil Sands Natural Gas Sunoco and eliminations Total
--------------- ------------ ------------- ---------------- ---------------
($ millions) 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000
--------------- ------------ ------------- ------------ ---------------
EARNINGS
For the years ended December 31
REVENUES
Sales and other operating revenues 1,227 544 178 237 2,585 2,604 - - 3,990 3,385
Intersegment revenues 158 792 271 191 3 - (432) (983) - -
Interest - - - - - - 5 3 5 3
------ ------ ---- ---- ----- ----- ---- ---- ------ ------
1,385 1,336 449 428 2,588 2,604 (427) (980) 3,995 3,388
EXPENSES
Purchases of crude oil and products 99 3 - - 1,721 1,783 (429) (979) 1,391 807
Operating, selling and general 481 467 64 74 350 310 115 67 1,010 918
Exploration - - 22 53 - - - - 22 53
Royalties 30 98 104 101 - - - - 134 199
Taxes other than income taxes 12 12 3 3 351 345 1 1 367 361
Depreciation, depletion and amortization 233 232 70 78 56 54 1 1 360 365
(Gain) loss on disposal of assets 1 - (8) (147) - (1) - - (7) (148)
Start-up expenses - Project Millennium 141 15 - - - - - - 141 15
Write off of oil shale assets - - - - - - 48 125 48 125
Restructuring - - (2) 65 - - - - (2) (243)
Interest - - - - - - 18 8 18 8
------ ------ ---- ---- ----- ----- ---- ---- ------ ------
997 827 253 227 2,478 2,491 (246) (777) 3,482 2,768
------ ------ ---- ---- ----- ----- ---- ---- ------ ------
EARNINGS (LOSS) BEFORE INCOME TAXES 388 509 196 201 110 113 (181) (203) 513 620
Provision for income taxes (105) (194) (79) (103) (30) (32) 89 86 (125) (243)
------ ------ ---- ---- ----- ----- ---- ---- ------ ------
NET EARNINGS (LOSS) 283 315 117 98 80 81 (92) (117) 388 377
====== ====== ==== ==== ===== ===== ==== ==== ====== ======
CAPITAL EMPLOYED
As at December 31 1,398 1,412 317 412 483 386 32 22 2,230 2,232
====== ====== ==== ==== ===== ===== ==== ==== ====== ======
Twelve months ended December 31
RETURN ON AVERAGE
CAPITAL EMPLOYED (%) 20.1 22.8 32.1 17.2 18.4 20.5 - - 17.9 16.6
====== ====== ==== ==== ===== ===== ==== ==== ====== ======
RETURN ON AVERAGE
CAPITAL EMPLOYED (%) * 6.4 10.6 32.1 17.2 18.4 20.5 - - 7.5 9.3
====== ====== ==== ==== ===== ===== ==== ==== ====== ======
* The company's definition of capital employed excludes capitalized costs
related to major projects in progress. If capital employed were to include
these capitalized costs, the return on average capital employed would be as
stated on this line.
SUNCOR ENERGY INC.
SCHEDULES OF SEGMENTED DATA (cont'd)
(unaudited)
Corporate
Oil Sands Natural Gas Sunoco and eliminations Total
--------------- ------------ ------------- ---------------- ---------------
($ millions) 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000
--------------- ------------ ------------- ------------ ---------------
CASH FLOW BEFORE
FINANCING ACTIVITIES
For the years ended December 31
CASH PROVIDED FROM (USED IN)
OPERATING ACTIVITIES:
Cash flow provided from
(used in) operations
Net earnings (loss) 283 315 117 98 80 81 (92) (117) 388 377
Exploration expenses
Cash - - 12 12 - - - - 12 12
Dry hole costs - - 10 41 - - - - 10 41
Non-cash items included in earnings
Depreciation, depletion
and amortization 233 232 70 78 56 54 1 1 360 365
Future income taxes 89 189 76 101 18 (16) (62) (76) 121 198
Current income tax provision
allocated to Corporate 17 5 3 2 12 48 (32) (55) - -
(Gain) loss on disposal of assets 1 - (8) (147) - (1) - - (7) (148)
Write off of oil shale assets - - - - - - 48 125 48 125
Restructuring - - (3) 56 - - - - (3) 56
Other (5) (12) 3 (4) 2 6 8 (7) 8 (17)
Overburden removal outlays (31) (48) - - - - - - (31) (48)
Overburden removal outlays - Project
Millennium (88) (27) - - - - - - (88) (27)
Increase (decrease) in deferred
credits and other (13) 1 - 1 (3) 2 29 20 13 24
------ ------ ---- ---- ----- ----- ---- ---- ------ ------
Total cash flow provided from
(used in) operations 486 655 280 238 165 174 (100) (109) 831 958
Decrease (increase) in operating
working capital (35) (169) 44 27 17 40 (45) 52 (19) (50)
------ ------ ---- ---- ----- ----- ---- ---- ------ ------
Total cash provided from (used in)
operating activities 451 486 324 265 182 214 (145) (57) 812 908
------ ------ ---- ---- ----- ----- ---- ---- ------ ------
CASH PROVIDED FROM (USED IN)
INVESTING ACTIVITIES:
Capital and exploration expenditures (1,479) (1,808) (132) (127) (54) (45) (13) (18) (1,678) (1,998)
Deferred maintenance
shutdown expenditures (5) (3) (2) (1) (9) (9) - - (16) (13)
Deferred outlays and other investments (2) (5) (1) - (9) (7) (7) (1) (19) (13)
Proceeds from disposals 10 101 22 314 1 2 - - 33 417
------ ------ ---- ---- ----- ----- ---- ---- ------ ------
Total cash provided from (used in)
investing activities (1,476) (1,715) (113) 186 (71) (59) (20) (19) (1,680) (1,607)
------ ------ ---- ---- ----- ----- ---- ---- ------ ------
NET CASH SURPLUS (DEFICIENCY)
BEFORE FINANCING ACTIVITIES (1,025) (1,229) 211 451 111 155 (165) (76) (868) (699)
====== ====== ==== ==== ===== ===== ==== ==== ====== ======
SUNCOR ENERGY INC.
SCHEDULES OF SEGMENTED DATA
(unaudited)
Corporate
Oil Sands Natural Gas Sunoco and eliminations Total
------------- ------------- ------------- ---------------- -------------
($ millions) 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000
------------- ------------- ------------- ---------------- -------------
EARNINGS
Fourth quarter
REVENUES
Sales and other operating revenues 298 122 26 80 558 724 - - 882 926
Intersegment revenues 34 202 37 71 - - (71) (273) - -
Interest - - - - - - 1 1 1 1
--- --- -- --- --- --- --- ---- --- ---
332 324 63 151 558 724 (70) (272) 883 927
EXPENSES
Purchases of crude oil and products 9 1 - - 355 505 (73) (274) 291 232
Operating, selling and general 115 131 18 21 98 92 42 27 273 271
Exploration - - 15 12 - - - - 15 12
Royalties 5 25 10 40 - - - - 15 65
Taxes other than income taxes 3 3 1 - 89 88 - 1 93 92
Depreciation, depletion and
amortization 67 62 18 18 15 13 1 1 101 94
(Gain) loss on disposal of assets - - (9) 1 - - - - (9) 1
Start-up expenses - Project Millennium 76 5 - - - - - - 76 5
Interest - - - - - - 3 2 3 2
--- --- -- --- --- --- --- ---- --- ---
275 227 53 92 557 698 (27) (243) 858 774
--- --- -- --- --- --- --- ---- --- ---
EARNINGS (LOSS) BEFORE INCOME TAXES 57 97 10 59 1 26 (43) (29) 25 153
Provision for Income taxes (20) (29) 2 (28) (1) (3) 20 18 1 (42)
--- --- -- --- --- --- --- ---- --- ---
NET EARNINGS (LOSS) 37 68 12 31 - 23 (23) (11) 26 111
=== === == === === === === ==== === ===
SUNCOR ENERGY INC.
SCHEDULES OF SEGMENTED DATA (cont'd)
(unaudited)
Oil Sands Natural Gas Sunoco and eliminations Total
------------- ------------- ------------- ---------------- -------------
($ millions) 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000
------------- ------------- ------------- ---------------- -------------
CASH FLOW BEFORE
FINANCING ACTIVITIES
Fourth quarter
CASH PROVIDED FROM (USED IN)
OPERATING ACTIVITIES:
Cash flow provided from
(used in) operations
Net earnings (loss) 37 68 12 31 - 23 (23) (11) 26 111
Exploration expenses
Cash - - 8 2 - - - - 8 2
Dry hole costs - - 7 10 - - - - 7 10
Non-cash items included
in earnings
Depreciation, depletion
and amortization 67 62 18 18 15 13 1 1 101 94
Future income taxes 17 36 (3) 27 22 (20) (25) (8) 11 35
Current income tax provision
allocated to Corporate 4 (7) 1 1 (21) 23 16 (17) - -
(Gain) loss on disposal
of assets - - (9) 1 - - - - (9) 1
Restructuring - - - - - - - - - -
Other 4 (15) 1 (6) - - 3 1 8 (20)
Overburden removal outlays (8) (14) - - - - - - (8) (14)
Overburden removal
outlays - Project Millennium (33) (15) - - - - - - (33) (15)
Increase (decrease) in
deferred credits and other 2 4 - - 2 2 18 6 22 12
---- ---- ---- ---- ---- ---- ---- ---- ----- -----
Total cash flow provided from
(used in) operations 90 119 35 84 18 41 (10) (28) 133 216
Decrease (increase) in operating
working capital 19 (18) (8) (15) 49 57 (5) 10 55 34
---- ---- ---- ---- ---- ---- ---- ---- ----- -----
Total cash provided from (used in)
operating activities 109 101 27 69 67 98 (15) (18) 188 250
---- ---- ---- ---- ---- ---- ---- ---- ----- -----
CASH PROVIDED FROM (USED IN)
INVESTING ACTIVITIES:
Capital and exploration
expenditures (313) (480) (48) (32) (28) (15) (5) (8) (394) (535)
Deferred maintenance
shutdown expenditures (1) (2) - (1) (9) - - - (10) (3)
Deferred outlays and other
investments - - - - (9) (1) (1) (2) (10) (3)
Proceeds from disposals - - 13 - 1 - - - 14 -
---- ---- ---- ---- ---- ---- ---- ---- ----- -----
Total cash provided from
(used in) investing activities (314) (482) (35) (33) (45) (16) (6) (10) (400) (541)
---- ---- ---- ---- ---- ---- ---- ---- ----- -----
NET CASH SURPLUS (DEFICIENCY)
BEFORE FINANCING ACTIVITIES (205) (381) (8) 36 22 82 (21) (28) (212) (291)
==== ==== ==== ==== ==== ==== ==== ==== ===== =====
SUNCOR ENERGY INC.
QUARTERLY OPERATING SUMMARY
(unaudited)
For the quarter ended For the years ended
-------------------------------------------------------- --------------------
DEC 31 Sept 30 June 30 Mar 31 Dec 31 DEC 31 Dec 31
2001 2001 2001 2001 2000 2001 2000
-------- -------- -------- -------- -------- -------- --------
OIL SANDS
PRODUCTION (a) 153.0 116.5 109.7 113.4 110.0 123.2 113.9
SALES (a)
- light sweet crude oil 62.4 54.2 55.0 53.0 64.0 56.2 64.3
- diesel 15.3 15.0 15.2 13.5 11.0 14.8 9.3
- light sour crude oil 64.3 40.6 31.5 31.4 27.5 42.0 35.8
- bitumen 4.3 8.0 13.0 8.6 11.0 8.5 6.2
-------- -------- -------- -------- -------- -------- --------
146.3 117.8 114.7 106.5 113.5 121.5 115.6
-------- -------- -------- -------- -------- -------- --------
AVERAGE SALES PRICE (b)
- light sweet crude oil 30.22 35.20 36.05 36.09 37.22 34.17 35.31
- other (diesel, light sour
crude oil and bitumen) 20.12 28.21 27.12 25.66 23.71 24.86 27.09
- total 24.43 31.43 31.40 30.84 31.33 29.17 31.67
- total * 25.65 37.37 38.35 38.17 43.27 34.21 41.29
CASH OPERATING COSTS (1), (c) 17.45 18.25 17.00 15.40 16.40 17.00 13.55
TOTAL OPERATING COSTS (2), (c) 19.40 20.95 19.65 18.60 19.50 19.60 17.25
NATURAL GAS
GROSS PRODUCTION **
Conventional
- natural gas (d) 180 176 177 177 183 177 200
- natural gas liquids (a) 2.4 2.4 2.3 2.3 2.5 2.4 3.0
- crude oil (a) *** 1.3 1.5 1.5 1.7 1.6 1.5 4.2
- total (e) 33.7 33.2 33.3 33.5 34.6 33.4 40.5
AVERAGE SALES PRICE
- natural gas (f) 3.10 3.90 6.78 10.73 8.02 6.09 4.72
- natural gas (f) * 3.09 3.90 6.82 10.81 8.05 6.12 4.73
- natural gas liquids (b) 23.47 30.26 39.32 45.07 43.00 34.38 36.66
- crude oil - conventional(b) 27.17 33.17 36.75 37.35 36.01 33.92 29.50
- crude oil - conventional(b) * 28.60 37.86 42.30 42.12 44.35 38.14 39.80
NET WELLS DRILLED
Conventional - exploratory **** 14 1 3 2 4 20 16
- development 6 7 3 2 4 18 19
-------- -------- -------- -------- -------- -------- --------
20 8 6 4 8 38 35
-------- -------- -------- -------- -------- -------- --------
SUNCOR ENERGY INC.
QUARTERLY OPERATING SUMMARY
(unaudited)
For the quarter ended For the years ended
-------------------------------------------------------- --------------------
DEC 31 Sept 30 June 30 Mar 31 Dec 31 DEC 31 Dec 31
2001 2001 2001 2001 2000 2001 2000
-------- -------- -------- -------- -------- -------- --------
SUNOCO
REFINED PRODUCT SALES (g)
Transportation fuels
Gasoline - retail ***** 4.5 4.4 4.3 4.1 4.4 4.3 4.2
- other 4.3 4.6 4.5 4.0 4.1 4.4 4.0
Jet fuel 0.4 0.7 0.7 1.1 1.0 0.7 1.1
Diesel 2.9 3.0 3.5 3.1 3.3 3.1 3.1
-------- -------- -------- -------- -------- -------- --------
12.1 12.7 13.0 12.3 12.8 12.5 12.4
Petrochemicals 0.4 0.6 0.6 0.5 0.6 0.5 0.6
Heating oils 0.4 0.2 0.3 0.8 0.6 0.4 0.4
Heavy fuel oils 0.6 0.9 0.8 0.9 0.7 0.8 0.6
Other 0.5 0.7 0.6 0.4 0.5 0.6 0.6
-------- -------- -------- -------- -------- -------- --------
14.0 15.1 15.3 14.9 15.2 14.8 14.6
-------- -------- -------- -------- -------- -------- --------
NATURAL GAS SALES (d) 92 95 102 92 95 95 83
-------- -------- -------- -------- -------- -------- --------
MARGINS (h)
Refining (3) 3.7 4.3 8.1 6.2 5.8 5.7 5.9
Retail (4) 6.9 5.9 7.6 6.1 7.0 6.6 6.6
CRUDE OIL SUPPLY AND REFINING
Processed at Suncor refinery (g) 9.2 11.0 10.9 9.8 10.5 10.2 10.9
Utilization of refining capacity (%) 83 99 98 88 95 92 98
* Excludes the impact of hedging activities.
** Currently all Natural Gas production is located in the Western Canada
Sedimentary Basin.
*** Before deducting fourth quarter 2001 Alberta Crown royalty of 0.2 thousand
barrels per day (fourth quarter 2000 - 0.2 thousand barrels per day).
**** Excludes exploratory wells in progress.
*****Excludes sales through joint venture interests.
(a) thousands of barrels per day
(b) dollars per barrel
(c) dollars per barrel rounded to the nearest $0.05
(d) millions of cubic feet per day
(e) BOE (6:1 basis) per day
(f) dollars per thousand cubic feet
(g) thousands of cubic metres per day
(h) cents per litre
DEFINITIONS
(1) Cash operating costs - operating, selling and general expenses, taxes other
than income taxes and overburden cash expenditures for the period
(2) Total operating costs - cash and non-cash operating costs (total Oil Sands
expenses less purchases of crude oil and products and royalties in
Schedules of Segmented Data).
(3) Refining margin - average wholesale unit price from all products minus
average unit cost of crude oil.
(4) Retail margin - average street price of Sunoco branded retail gasoline
minus refining gasoline price.
METRIC CONVERSION
Crude oil, refined products, etc 1m3 (cubic metre) = approx. 6.29 barrels
Natural gas 1m3 (cubic metre) = approx. 35.49 cubic feet
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SUNCOR ENERGY INC.
Date: January 17, 2002 By: "JANICE B. ODEGAARD"
------------------------------------
JANICE B. ODEGAARD
Vice President, Associate General
Counsel and Corporate Secretary