Canadian oil stock Suncor Energy (TSE:SU) rolled out its earnings results for the fourth quarter of 2024 earlier today, and the numbers came out a little disappointing in many areas. But despite the disappointment, investors were reasonably pleased, and shares of Suncor ticked up fractionally in Thursday morning’s trading.
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Suncor posted earnings per share of C$0.65 per share. That is hardly bad news, until you consider what it looked like in 2023’s fourth quarter. That C$0.65 pales against the C$2.18 per share it posted this time last year. Revenue was also eviscerated, down from C$2.82 billion this time last year to just C$818 million. Despite this, adjusted operating earnings for the quarter decreased only slightly, dropping from C$1.64 billion to C$1.57 billion.
What made the news even harder to swallow was that Suncor actually managed to produce more in this time frame. Suncor saw its average barrels of oil equivalent per day figure going from 808,100 barrels in 2023’s fourth quarter to around 875,000 barrels in the fourth quarter of 2024.
Dividends Up
In what should have at least proved happy news to investors, Suncor still managed to authorize a dividend payment. Suncor is now offering up a dividend of $0.57 per share, which will be paid on March 25,2025 to anyone who held shares as of March 4,2025.
One thing that may have impacted Suncor’s operations overall, though, was a move toward “sustainability,” which saw Suncor work to decrease its carbon emissions. It has worked on several projects in that vein that were only tangentially related to pumping crude oil out of the ground, including the development of fuels from renewable feedstock, as well as “energy trading activities.”
Is Suncor a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:SU stock based on 10 Buys and five Holds assigned in the past three months, as indicated by the graphic below. After an 34.28% rally in its share price over the past year, the average TSE:SU price target of C$63.78 per share implies 14.48% upside potential.
