Oil sands giant Suncor repays US $1.25 billion bond early, buys back $2 billion of shares

Suncor oilsands

Suncor announced plans to repurchase up $2 billion of the company’s shares over next twelve months, together with an early repayment of a $1.25USD billion bond, according to a press release.

“Our business continues to deliver strong cash flow even at current commodity prices,” said Steve Williams, Suncor president and CEO.

“We have made commitments to increase returns to shareholders and strengthen the balance sheet over time.”

In Feb. 2017, Suncor reported record production and a fourth-quarter operating profit of C$636 million ($.38CDN/share) versus a loss of C$26 million ($.02CDN/share) in the year-ago period.

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“Today’s actions, in conjunction with the 10% dividend increase announced in Feb. 2017, deliver on both of these objectives and demonstrate our strong confidence in the cash generation capability of Suncor’s integrated business at current oil prices,” said Williams.

Suncor’s management intends to execute the repurchase with “capital discipline, by ensuring the level of spending is in line with prevailing commodity price environment and cash flows.”

The actual number of common shares that may be purchased under the repurchase and the timing of any such purchases will be determined by Suncor.

Management  believes that depending on trading price of its common shares and other relevant factors, purchasing its own shares “represents an attractive investment opportunity and are in the best interests of the company and its shareholders.”