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Suncor to shun major new projects amid Canada's 'difficult' regulatory environment




CALGARY – The top executive at Canada’s largest integrated oil company stated it would not embark on major new projects in the united kingdom because of burdensome regulations and uncompetitive tax rates.

Suncor Energy Inc. president and CEO Steve Williams said in an earnings call Thursday that his company would pare back spending from now on years partly because Canada because competitive as other countries.

“We’re requiring you to consider Canada quite hard. The cumulative impact of regulation and greater taxation than other jurisdictions is making Canada an even more difficult jurisdiction to allocate capital in,” Williams said.

He made content Thursday, right before the federal government Liberal government announced a regulatory overhaul for energy projects, allowing the Impact Assessment Agency of Canada and rebranding the National Energy Board because the Canadian Energy Regulator.

Natural Resources Minister Jim Carr said in the release modifications would create a surrounding where “investors, companies and all sorts of Canadians could have confidence that great projects will likely be approved in regular basis and held to your highest standard.”

Suncor spokesperson Sneh Seetal said within an email the firm would “require a chance to study the regulatory changes in to better grasp the impact.”

Williams told financial analysts Thursday that Suncor is actively discussing Canada’s deficiency of competitiveness with many amounts of government here because “other jurisdictions are performing additional to draw business, so Canada should do extra to up its game.”

“Absent some changes and several improvement competing, you’re gonna see us not exercising the very big capital projects that we’ve just finished,” Williams said.

Last month, Suncor roared to life its $17-billion Fort Hills oilsands project north of Fort McMurray featuring its joint-venture partners Paris-based Total SA and Vancouver-based Teck Resources Ltd. The mine happens to be ramping up production and it’s likely reach 90 percent of the company’s designed 194,000-bpd capacity by the end of the season.

In the 4th quarter, the business also produced its first barrel of oil from Hebron, an assignment offshore Newfoundland which it provides a stake in alongside Exxon Mobil Canada, Chevron Canada, Statoil SA and Nalcor Energy.

In the long term, Suncor plans to spend roughly $5.5 billion each year growing its production in smaller projects, including debottlenecking efforts and repeatable projects – such as the steam-based Meadow Creek East and West oilsands plants – to develop its production.

But don’t expect to see new mega-projects like Fort Hills announced without regulatory and fiscal changes, Williams said.

He said that when the discount Canadian heavy oil producers must accept for barrels relative to free airline Texas Intermediate benchmark oil price persists long-term or worsens, the firm might think about adding equipment to the refinery in Montreal to process more heavy oil and further reduce its contact with the differential.

About 20 per cent from the company’s production is subject to the discount between Western Canadian Select and West Texas Intermediate, which had been $36.12 per barrel at close on Wednesday.

National Bank Financial analyst Travis Wood highlighted Suncor’s “limited WCS exposure” is among the most reasons this company remains his top stock pick. Some other reasons include Suncor’s announcement on the roughly 12 per-cent dividend increase Thursday and that it would buy back $2 billion in a unique shares.

Suncor enjoyed higher oil prices far better utilization at its refineries and, consequently, increased its gross revenues 23 % to $4.1 billion inside the fourth quarter, from $3.3 billion in the same period 2009.

The oilsands producer also boosted its net earnings 143 % to $670 million inside the quarter, up from $276 million by the end of 2019.

Suncor also announced it had sold off its northeastern British Columbia lands within the Montney gas main formation to privately-held Canbriam Energy in substitution for $52 million along with a 37 per cent stake as company.


The company considered a universal economy bellwether just had its biggest profit miss in a very decade





Caterpillar Inc. had the largest quarterly profit miss from a decade as the China slowdown hit interest in its signature yellow construction and mining equipment.

The Deerfield, Illinois-based company also issued a 2019 profit forecast range which, for the cheap, was within the average of analysts’ expectations, exacerbating worries over mounting trade tensions that pummelled the heavy-equipment maker’s shares in 2009.

Caterpillar, financial bellwether, increases gloom on growth after corporate executives joined the International Monetary Fund a while back in warning the global economy is slowing faster than expected. Caterpillar shares fell greater than 5 per-cent in pre-market trading, that would really do the biggest decline at the moment.

The shares plunged from the fourth quarter amid concern that weaker commodity prices, signs of slowing in China and risks on the European economy posed a threat to demand.

“The retail sales for Asia-Pacific did show a decline in December, however is to the back of two strong years,” chief financial officer Andrew Bonfield said by phone. “However, when you watch out into our guidance for 2019 we expect total excavator sales to remain about flat year-on-year” in China.

“China represents between 5 per cent and 10 per cent of our own total revenue, so it’s relatively small. America is probably the serious market.”

The company said it expects 2019 profit from a range of US$11.75 to US$12.75 per share. The common estimate among 28 analysts was for adjusted profit of US$12.72 a share, according to data authored by Bloomberg. Its fourth-quarter profit result was US$2.55 per share, about 15 percent below estimates, the greatest miss considering that the fourth quarter of 2008.

“Our outlook assumes a modest sales increase in line with the fundamentals in our diverse end markets in addition to the macroeconomic and geopolitical environment,” leader Jim Umpleby said in a very statement Monday.

Shares tumbled 5.8 per cent to US$128.90 at 8:37 a.m. in New York.

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Wish to know how risky your portfolio is? What performed in 2018 gives you advisable





Your year-end investment statement will likely be hitting the mailbox any time now. You’ll additionally be receiving important supplementary information. The Canadian Securities Administrators (CSA) require that investment dealers and counsellors show clients their portfolio returns and costs paid within the annual report (which might come separately).?

This is the foremost time you’ll have all year to assess how you’re doing and whether your provider is delivering the items.

I should explain that Canadian investment firms aren’t recognized for their transparency that serves to have to do some digging. If you’re acquiring the smallest amount, then you need to provide your advisor or client service representative a nudge. They are in the position to provide much more information about fees, returns and asset mix.

When you will find the year-end reports in mind, particular to think about.


When you are considering costs, the high quality and usefulness within the numbers varies between firms. While in the annual report, dealers are required to show the administration charges, advice fees and purchasers commissions you paid. They don’t, however, ought to include management fees and expenses relevant to any ETFs, mutual funds and structured products you own. If you’re unsure what’s included, ask whether you’re seeing the total cost.

And if the enquiry is met with hesitation, obfuscation, or you’re told fees aren’t important, ask more questions. You’re almost certainly paying far too much.

Investment returns

Returns for 2018 will be throughout the map. An enormous many investors will be down with the year and possibly the declines might be severe (if he or she were for the wrong side of your pot stocks, had far too much energy and/or insufficient foreign exposure). A lucky few have been around in positive territory.

Keep in mind, individual years are certainly not attractive assessing how you’re doing (quite short; too random), although in 2009 was more useful than some. While using the increased volatility, 2018 would have been a good indicator of methods much risk you could have with your portfolio.

Ideally, you need to examine returns more than a full cycle, consisting of bull and bear market periods. Normally indicate, the annual report has become a little more useful each and every year. That’s since the CSA started the clock on Jan. 1, 2019, which implies you’ll see a minimum of three-year returns on this occasion.

Three years is from the full cycle, but it’s a lot better than only one. A well-balanced portfolio (Fifty to seventy per-cent stocks) must have achieved money within the number of less than six per cent per annum of course costs (which compatible a cumulative return of nine to 16 percent). I’m basing this about how the fixed income and equity indexes did over that time.

If you’ve been with the firm for a long time, obtain numbers here we are at whenever you started. Ten-year returns to December represent a whole market cycle and match up well in your long-term investing goals. Over the last decade, balanced portfolio returns should be inside choice of 4 to 6 per-cent per annum (80 to 120 % cumulative). For portfolios that happen to be predominantly purchased stocks, a good range is eight to 10 per cent. Should you be meaningfully below these levels, consider creating a change.

Asset mix

The biggest lever you\’ve got for adjusting your level of risk could be the kind of assets you keep. Particularly, the share of your portfolio that’s invested in stocks, and the higher bonds and real estate investment as compared to more stable fixed income vehicles like GIC’s and government bonds.

Asset mix can be another area that you ought to ask for better information. Most of the statements I see digest accounts into cash, bonds, stocks and mutual funds. Funds, however, are convenient vehicles for owning cash, bonds and stocks, they are not a good thing class. In case you have a large amount within your portfolio in mutual funds, this breakdown is of no use. Again, ask your advisor to set any accounts together (RRSPs; TFSAs; and other accounts) and calculate a resource mix using the funds you possess.

This year you most likely are hesitant to open your statements given how badly 2018 finished, but I encourage someone to not less than evaluate the annual report and make certain you understand it. You can’t assess how you’re doing unless you do.

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Canadian stocks post their best learn to the year since 1980





The last time Canadian stocks started the entire year basic a dramatic gain, Michael Jackson’s Rock On you was no. 1 song, the Rubik’s Cube had just hit store shelves and Bank of Canada’s key lending rate was almost 13 percent.

The S&P/TSX Composite Index has gained about seven % for the reason that close of trading on Dec. 31, the main increase over the first 18 times the age since 1980, as soon as the benchmark was up 8.5 per-cent, data published by Bloomberg show. The index has risen 11 straight days.

Behind this year’s rally could be the varieties of firms that were unimaginable in 1980, when Cheech and Chong’s second film had just hit theatres: pot producers. Three in the top four gainers year-to-date are Canopy Growth Corp., up 58 per-cent, Cronos Group Inc., up 38 per-cent and Aurora Cannabis Inc., up 26 per cent.

The gain puts Canadian stocks in eighth place among developed-world markets, providing some respite to investors who lost almost 12 per cent in 2009. Austria is leading having an 8.8 percent gain even though the S&P 500 has advanced by 6.3 percent.

The next-strongest will the year was in 1987 if the Canada’s key equity gauge gained 6.7 percent, just nine months before Black Monday sent markets tumbling.

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