Suncor uninterested in selling Petro-Canada, CEO says despite shareholder pressure
CALGARY — Suncor Energy Inc. is not interested in selling off its Petro-Canada retail network, the oil giant’s chief executive said Tuesday, in spite of pressure from an aggressive activist investor.
Speaking publicly for the first time since U.S.-based Elliott Investment Management called for changes to Suncor’s board and a review of its executive leadership as well as the possible sale of Petro-Canada, company CEO Mark Little told analysts that the 1,800-location retail chain is a key element of Suncor’s business.
“It’s intertwined with our wholesale and industrial business as well,” Little said during a conference call to discuss the company’s first quarter financial results.
“(Petro-Canada) is a very strong performer and can go head-to-head with other retail businesses … We think we have the best downstream business in North America, and we think it’s important that it stays together.”
The recent proposal by Elliott — a well-known activist investor that holds a 3.4 per cent economic interest in Suncor and which has a track record of targeting large corporations it views as underperformers — had the Calgary-based oil producer on the defensive on Tuesday’s call.
Elliott has been critical of Suncor’s lagging share price as well as a recent spate of operational difficulties and workplace safety incidents, and analysts wanted to know how the company is responding to these concerns.
But Little pointed to Suncor’s first quarter profits of $2.95 billion in the first quarter — up from $821 million in the same period of 2021 — as well as the highest quarterly cash flow in the company’s history as proof that Suncor is on the right track.
“While we still have work to do, I’m pleased to report that we’re making progress and that all parts of Suncor are shifting into high gear,” Little said.
“Our board and management have great confidence in our plan and the progress we’re making.”
On Monday, Suncor declared a quarterly dividend of 47 cents per common share payable June 24 to shareholders of record as of June 3. The company says the dividend is the highest in the company’s history and 12 per cent higher than the previous quarter’s dividend.
The company’s net earnings amounted to $2.06 per common share, compared to 54 cents per common share in the first quarter of last year.
Revenues were $13.5 billion, up from $8.6 billion in the prior quarter.
Suncor reported total upstream production of 766,100 barrels of oil equivalent per day (boe/d) in the first quarter of 2022, compared to 785,900 boe/d in the prior year quarter.
Refinery crude throughput increased to 436,500 barrels per day and refinery utilization was 94 per cent in the first quarter of 2022, compared to 428,400 barrels per day and 92 per cent in the prior year quarter.
This report by The Canadian Press was first published May 10, 2022.
Companies in this story: (TSX:SU)
Amanda Stephenson, The Canadian Press
Alberta Sheriffs receiving additional officers and more powers with new funding
Mike Ellis shakes hands with Alberta Premier Danielle Smith after being sworn into cabinet as minister of public safety in Edmonton, Monday, Oct. 24, 2022. Alberta sheriffs will have expanded powers and play a bigger role in combating rural crime with new funding, the provincial government said Friday. THE CANADIAN PRESS/Jason Franson
St. Paul, Alberta
The Alberta Sheriffs Branch will have expanded powers and play a bigger role in combating rural crime with new funding, the provincial government said Friday.
Public Safety Minister Mike Ellis said $27.3 million will go to new positions and for rural crime initiatives, including two plain clothes teams that will help RCMP with criminal surveillance.
The announcement comes as Alberta continues to mull over whether to create a provincial police service to replace the RCMP.
“There has been some misleading commentary about this investment in the Alberta sheriffs, namely that it’s the way of laying the groundwork for establishing a provincial police service by some other means,” Ellis said Friday in St. Paul, Alta., 200 kilometres northeast of Edmonton.
“I’d like to remind people that the provincial government hasn’t made any decision about an Alberta police service.”
Ellis said although the RCMP has its own surveillance teams, most of the efforts are focused on major investigations. He said the new sheriff teams will fill a gap by helping the RCMP detachments with local investigations.
“I’ve heard countless stories about home invasions being committed by prolific offenders or thefts from farms. Every property owner has the right to feel safe in their home and the right not to wake up and find their equipment gone or fuel siphoned from vehicles,” he said.
“These really are the type of cases that keep Albertans up at night.”
The sheriffs will also get funding to add 20 investigators to the Safer Communities and Neighbourhood unit, which uses civil enforcement to target problem properties where illegal activities take place.
There is also money for the Sheriff Highway Patrol to train and equip its members to help RCMP with emergencies and high-priority calls.
“We will provide all members of the Alberta sheriffs with full powers to arrest under the Criminal Code,” Ellis said.
“Some members of the sheriffs already have Criminal Code authorities, but we believe the public will be better served with consistency throughout this province.”
The head of the Alberta RCMP said he welcomes the additional help from the sheriffs.
“These additional resources for the Alberta Sheriffs will improve our combined ability to suppress criminal activity in rural Alberta,” said Deputy Commissioner Curtis Zablocki in a statement.
Farooq Sheikh, the chief of Alberta Sheriffs, called it a proud day.
“While our members have a visible presence in many functions they perform such as highway patrol, fish and wildlife enforcement, security in our provincial courts … the sheriffs perform a lot of important work to keep communities safe that’s outside of the public eye.”
This report by The Canadian Press was first published March 24, 2023.
Finance Minister Travis Toews, Environment Minister Sonya Savage say won’t run again
Alberta Finance Minister Travis Toews delivers the budget, in Edmonton, Tuesday, Feb. 28, 2023. Toews says he will not run in the upcoming provincial election. THE CANADIAN PRESS/Jason Franson
By Dean Bennett in Edmonton
Two Alberta government cabinet ministers announced Friday that they will not be seeking re-election.
Travis Toews, the province’s finance minister and the runner-up to Premier Danielle Smith in last fall’s United Conservative Party leadership race, is exiting politics. Environment Minister Sonya Savage also said she will not run in the expected May 29 provincial vote.
Toews, the legislature member for Grande Prairie-Wapiti in northwestern Alberta, ended months of speculation with his announcement. He said it was a recent decision and a difficult one for him and his wife, Kim.
“(There were) personal considerations, certainly family considerations and some business considerations,” Toews said in an interview. “When we added all of them up this seemed like the right decision for us. That was the impetus for it.”
He dismissed suggestions the decision was tied to his loss to Smith or to the party’s further shift to the right under her leadership.
“We have a big tent party. This United Conservative Party has a lot of diversity. All groups are very important,” he said.
“I’m fully committed to the party, to the movement, committed to the premier and committed to an election win this May.”
Toews was elected in 2019 for the UCP and was finance minister for all but a few months when he ran to replace former premier Jason Kenney as party leader, coming in second to Smith.
Savage, the member for Calgary North-West, announced her decision to quit provincial politics with a statement on Twitter, saying she wants to spend more time with her family. She said she looks forward to remaining a party member and wished the premier and her UCP colleagues success in the upcoming election.
In a statement, Smith said Toews has been “one of the strongest finance ministers in Alberta’s history and leaves a legacy of strong fiscal management that I will continue to uphold as premier.”
“I greatly respect his decision to spend more time on the ranch and with his family,” Smith said. “There will be big boots to fill in Grande Prairie-Wapiti, and I wish him, Kim and the family nothing but the very best.”
Smith said Savage will be greatly missed.
“Minister Sonya Savage’s dedication and commitment to furthering Alberta’s energy interests and developing a Made-in-Alberta approach to responsible environmental stewardship of our natural resources will benefit Albertans for decades,” she said in a statement.
Toews had refused to discuss his future in recent weeks, saying he was focused on passing the budget, which featured a projected $2.4-billion surplus along with increased spending across the board.
The decision comes a little over a month from when the writ is expected to drop.
Smith said that given the short window, she will work with the party and the local constituency association to appoint a candidate “so that the new candidate can hit the ground running and ensure a UCP victory in this constituency.”
Toews was the early favourite to replace Kenney as leader last year – with half of the caucus members supporting him — but fell short in the end as Smith galvanized party anger with the federal government and COVID-19 health restrictions.
He locked horns with Smith during the campaign. He criticized her for past advocacy of a provincial sales tax and said her proposed — and since passed — sovereignty act would scare off investment with its promise to ignore federal laws in areas of perceived provincial jurisdiction.
As finance minister, the rancher and accountant oversaw the best and worst of Alberta’s turbulent oil-and-gas-powered economy, with massive deficits, negative oil prices and eye-popping surpluses.
He looked born to the parts of outdoorsman and number cruncher: close-cropped hair, eyeglasses and well-worn cowboy boots with a trademark monotone speaking style occasionally punctuated by high-decibel, finger-pointing attacks on the NDP Opposition during question period.
He stickhandled many controversial files, including de-indexing personal income tax, arguing for wage cuts to nurses during the COVID-19 pandemic and lifting the rate cap on auto insurance.
He was also the point person on long-running deliberations to pull Alberta out of the Canada Pension Plan in favour of a provincial one. The government has yet to release research on the merits and drawbacks of such a plan, despite promising two years ago that the release of a report was imminent.
Toews was also among those who were surreptitiously photographed in 2021 at a drinks-and-dinner get-together with Kenney on a rooftop patio on the legislature grounds in contravention of COVID-19 gathering rules.
In a statement, Opposition NDP finance critic Shannon Phillips said she admires Toew’s record.
“He conducts himself with decency and is mostly grounded in reality, unlike the new crop of Smith candidates.”
Toews said his proudest achievement is leaving the province in a better place financially than when he found it, noting the new budget also includes commitments to keeping spending under control while repaying debt and investing in long-term savings.
“We’re leading the nation in job creation,” Toews said.
“All of that tied together certainly brings some satisfaction to these last four years, which have certainly been a bit of a roller-coaster.”
He said the difficult part was long nights of no-win decisions during the COVID-19 crisis, balancing public health with personal freedoms with no clear cut black-and-white answers.
“Those were some of the hardest hours of my life serving on that COVID cabinet committee,” he said.
“(They were) impossible decisions, and knowing those decisions were going to impact Albertans directly. We certainly didn’t get it all right.”
This report by The Canadian Press was first published March 24, 2023.
Chief Clarence Louie and author Matt Tenney featured at Workforce Strategies Summit March 30 in Red Deer
Red Deer family rocked by cancer diagnosis seeks support from the community
NHL: Everyone Wears The Ribbon Part Deux
Eye Protection Wasn’t Misdirection
Food and Dining1 day ago
“Cook With Meg” creating community through online courses and camps for 3 years now
Alberta2 days ago
$3.6 million in meth seized by Border Enforcement Team at Courts crossing
Bruce Dowbiggin2 days ago
Pop Quiz: You Know You’re A Woke Punchline When…
armed conflict2 days ago
A look at the uranium-based ammo the UK will send to Ukraine
Alberta2 days ago
Firm handshakes, hard lines: Trudeau, Biden to talk protectionism, Haiti, migration
Alberta2 days ago
Premier Smith urges PM Trudeau to talk Ethical Energy Security in meeting with US President Biden
City of Red Deer1 day ago
City of Red Deer puts out call to private owners interested in selling or leasing property for integrated homeless shelter
Business2 days ago
Why TikTok’s security risks keep raising fears