Suncor's Job Cuts Might Not Have Been Enough

Suncor Energy Inc. has concluded its 1,500 job cuts—but it still may have to find more things to cut, chief executive Rich Kruger said on a Thursday earnings call. Absent from the call was the topic of climate change.

The job cuts that are now complete will save the company $450 million per year—a figure which is $50 million more than the company expected when it first announced the cuts, with extra gains coming from cuts in contingent workers and contractors and ultimately making the company more competitive.

Suncor said on the call that the job cuts works out to $1.20 per barrel.

Suncor hopes additional savings will come from its existing plan to purchase larger driverless-ready trucks that will replace many more smaller trucks. The savings here will be about $1 per barrel.

Peter Zebedee, executive vice-president of oilsands at Suncor, said that the company still has more cost savings to find, although each savings gets more difficult to find as waste dwindles.

Zebedee didn't say that more workers would find themselves on the chopping blocks.

"Now we're looking at more sophisticated examples of integrated planning and scheduling, and maintenance, scheduling activity to drive further efficiencies. So do I think there's more? Yes, absolutely. But this stuff is a bit more difficult to go after."

Suncor’s goal is to shave off $5 per barrel, and it plans on taking a look at the corporate side of things for additional savings as it continues to prioritize maximizing value for its shareholders.

Suncor reported adjusted earnings of $1.98 billion for Q3, or $1.52 per share, compared with $2.57 billion in the same quarter last year as crude prices fell from their 2022 peaks.

By Julianne Geiger for Oilprice.com