The oil major Shell also trimmed its dividends by 65% last month — its first in the last 75 years. Suncor Energy’s annualized dividend now comes around $0.84, implying a forward yield of 3.6%. Suncor Energy and crude oil in the post-COVID period, Live on Passive Income: 3 Top TSX Dividend Stocks to Buy in October 2020, Wherever the Market Goes, I’m Buying These Top TSX Stocks, Why Canopy Growth (TSX:WEED) Stock Fell Over 11% Last Month, Why Hexo (TSX:HEXO) Stock Fell 8.4% Last Month, 1 Safe High-Yield Dividend Stock to Buy for October, a lucrative opportunity for long term investors. But with Suncor having reduced its payout, investors are wagering whether Canadian Natural Resources Ltd. – another company with an unblemished record of dividend increases – will follow suit. Suncor said that as of March 31, it had $8.1 billion in liquidity. Non-subscribers can read and sort comments but will not be able to engage with them in any way. If you don't see it please check your junk folder. It’s also evaluating other options for its Terra Nova venture off Newfoundland and Labrador’s coast because the project’s production vessel can’t undergo planned work at a dry dock in Spain at the moment. The company’s share price fell 3.4 per cent to $22.50 on the Toronto Stock Exchange on Wednesday. Chris Cox, an analyst at Raymond James, pegged the chances of Canadian Natural doing so at 50-50, saying the company could wait to see how the next two months play out in energy markets. It has already lost around 45% so far this year. The worst of the plunge in petroleum demand and oil prices is expected this quarter. The company will save approximately $800 million given the dividend cut and reduced capex. Unauthorized distribution, transmission or republication strictly prohibited. That means: Comments that violate our community guidelines will be removed. Oil sand is brought to a crushing unit during a grand opening event for the Suncor Fort Hills oil-sands extraction site near Fort McKay, Alberta. Thank you for your patience. Find the latest dividend history for Suncor Energy Inc. Common Stock (SU) at We encountered an issue signing you up. I'm a print subscriber, link to my account, Avoid the use of toxic and offensive language. “It insulates their balance sheet so they are better positioned coming out of the downturn.”. “Given this incredible circumstance that’s having huge global implications, we view this as very important that we be pro-active. Please try again. Suncor is the first to cut among a trio of large, well-funded Canadian oil producers with records of steadily increasing dividends that had been seen as iron-clad. The Suncor Refinery in Edmonton is seen on April 29, 2014. Suncor also gave itself some breathing room by reducing its capital spending by another $400-million, bringing the total reduction from its initial budget for 2020 to $1.9-billion. Suncor’s net loss included $3.2-billion of non-cash asset impairment and foreign exchange charges. Full Disclaimer. The Canadian oil and gas giant Suncor Energy (TSX:SU)(NYSE:SU) was no exception and bore the brunt in the first quarter. But the toll on Suncor’s finances due to the COVID-19 pandemic and global oil price crash quickly made it a question of when to cut, not if. Suncor is the first to cut among a trio of large, well-funded Canadian oil producers with records of steadily increasing dividends that had been seen as iron-clad. The moves helped the company post a better-than-expected loss, excluding some items, of 20 cents a share. Canada’s largest oil sands producer reduced its quarterly dividend by 55 per cent, to 21 cents a share, as it reported a $3.5-billion net loss for the first quarter. Not to alarm you, but you’re about to miss an important event. Looking for the Next Potential Netflix? This is a space where subscribers can engage with each other and Globe staff. 351 King Street East, Suite 1600, Toronto, ON Canada, M5A 0N1, Just $1.99 per week for the first 24 weeks, var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(}function setPanelState(o){dom.root.classList[o?"add":"remove"](,dom.root.classList[o? The likelihood of a reduction later was deemed very high, given the market rout, so Suncor decided to make the cash available, he said. We hope to have this fixed soon. The company is fundamentally strong, and its balance sheet now looks even better positioned to survive the crisis. By continuing to use our site, you agree to our Terms of Service and Privacy Policy. Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Canadian Natural is scheduled to report its results on Thursday. However, it will make Suncor Energy better placed to weather the challenging times. The current levels of oil prices are hardly beneficial for anyone. This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. No oil producer has a breakeven level close to these levels. This translation has been automatically generated and has not been verified for accuracy. Analysts estimated a loss of 34 cents, on average. Welcome to The Globe and Mail’s comment community. It was a hard squeeze for energy companies recently amid the record-low oil prices. Suncor may have cut its dividend too soon: Money manager . Among global oil majors, Royal Dutch Shell PLC last week reduced its dividend for the first time since the Second World War, citing the drop in fuel consumption brought on by restrictions on movement to combat COVID-19. The second-quarter earnings are also expected to be unpleasant given the relative magnitude of the closures. This is a space where subscribers can engage with each other and Globe staff. So as we see improving market conditions and such, yes, that’s happening, but it’s from the low of the low,” Mr. Little said. Returns since inception, October 2013. There was an error, please provide a valid email address. Suncor Energy Inc. is going further into a defensive crouch, cutting its capital-spending plans for a second time and shrinking its dividend payout, as the COVID-19 pandemic hammers crude demand. As for the largest Canadian players, Imperial Oil Ltd. has left its dividend intact for now. However, the cut was expected and in line with the industry trends, hinting that the energy industry is in deep waters. Crescent Point reports $2.32-billion loss due to plunge in oil prices, Iraq struggling to implement OPEC’s record oil supply cut: sources, Oil dives more than five per cent, below $30 a barrel as glut grows. And this is very prudent in managing the financial strength of the company so that we can keep the company strong through this and not continue to take on debt,” Mr. Little told analysts in a conference call on Wednesday. “It’s prudent for Suncor because they would have been funding the dividend entirely from their balance sheet, and so we think it makes a lot more sense to not add debt in this current price environment,” Mr. Cox said. Its operating loss was $309-million, compared with an operating profit of $1.2-billion in the first quarter of 2019. “Ultimately, the dividend cut saves SU roughly C$1.5 billion per year, which is on top of a C$400 million cut in its capex.” Your time is valuable. It has already lost around 45% so far this year. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. © 2020 The Motley Fool Canada, ULC. Please read the Privacy Statement and Terms of Service for more information. Schlumberger, Suncor Energy and Halliburton Cut Dividend Shauvik Haldar | May 27, 2020 Check out the securities going ex-dividend this week with a decreased payout. A welcome email is on its way. Suncor Energy’s weak Q1 earnings and a dividend cut could push the stock further down. All rights reserved. Suncor’s dividend cut may be “priced into the stock” after Shell announced a similar action last week, with shares of Suncor lagging in a similar fashion. Also available in French and Mandarin. The virus is affecting Suncor’s maintenance work, too. Interestingly, crude oil prices have notably ticked higher this week. Current as of October 6, 2020. We apologize, but this video has failed to load. Suncor Energy deepens spending cuts, slashes quarterly dividend, Traders risk getting ahead of themselves with oil price gains, Marathon Petroleum runs plants at minimums but sees creep in gasoline demand, Unchecking box will stop auto data updates, Due to technical reasons, we have temporarily removed commenting from our articles. In the first quarter, Suncor was able to shift output to higher priced light crude and its refined-product mix to higher-value distillate. As oil prices plunged to record-low levels, the companies are instigating methods like dividend cuts and reduced capital spending to retain cash. Sign up today. West Texas Intermediate crude fell 2.3 per cent to US$23.99 a barrel on Wednesday, following five straight sessions of gains.