Calgary energy companies back in the black after second quarter boom IG News

IG news Update,

Many Calgary-based energy companies are reporting earnings growth for the second quarter of 2022, yet analysts don’t expect the energy boom to translate into an immediate rush of sector jobs as companies recover from the financial toll taken by the pandemic. Recovers.

Suncor reported record-breaking earnings of $3.99 billion in the second quarter, more than quadruple the $868 million earned in the same period of 2021.

“In the second quarter of 2022, Suncor reported the highest quarterly adjusted funds from operations in its history,” Chris Smith, Suncor Group’s interim president and CEO, said during a conference call with investors on Friday.

Cenovus reported earnings of $2.4 billion in the second quarter, compared to $224 million a year earlier.

Canadian Natural said it earned $3.5 billion, up from $1.6 billion in the same quarter last year.

And MEG Energy also recently reported quarterly earnings of $225 million, up from $68 million from 12 months ago.

“In the second quarter, MEG began its share buyback program and continues to make significant progress on debt reduction,” said Derek Evans, president and CEO of MEG Energy, during a call with investors on July 29.

Other companies reporting higher quarterly profits include Pembina, Imperial Oil, Enbridge, TC Energy, Precision Drilling and Crescent Point.

Some energy analysts say they expect energy companies to use the extra money to find balance, by first focusing on debt repayments and increasing shareholder profits.

“I think what most companies are going to do is pay off some debt, increase the dividend,” said Bob Schulz, a professor in the Hasken School of Business at the University of Calgary.

Schultz also expects to see modest job growth in the sector, but also an expansion of new jobs, including data analytics to reduce emissions, technological state-of-the-art and automation.

Another analyst says this boom will be different, and doesn’t expect companies to hastily reinvest in upstream drilling projects that will bring many jobs back to the oil sector.

“They all took a huge beating during that period (during the COVID-19 pandemic),” said Kevin Byrne, chief Canadian oil analyst at S&P Global Insights.

“They will strengthen that balance sheet over the long term, as it was a long period of low prices that preceded COVID-19,” he said.

Canadian Association of Petroleum Producers

However, according to the Canadian Association of Petroleum Producers (CAPP), production has not slowed down due to high demand for oil and natural gas.

In a statement to CTV News, CAPP President and CEO Lisa Batten says: “After nearly a decade of plunging commodity prices, producers in Canada have begun to increase their investments, which will be at least this year. As a result, we are reaching record high oil production as well as record high exports in Canada, thanks to increased transportation capacity from the completion of Line 3 expansion at the end of 2021.”

Batten also said that the industry will benefit from the completion of the Transmountain (TMX) expansion pipeline that will flow in 2023.

The statement continued, “Producers seek to maintain cost discipline and match increased production with transportation efficiencies. The world will continue to need responsibly produced oil and natural gas for years to come. And we believe that supply is Canada should come from

Alberta’s overall economy is also growing moderately, with the July unemployment rate at 4.8 percent according to Statistics Canada.

Calgary added 12,000 jobs last month.

“I am confident that our work to diversify and strengthen our economy will continue to provide more opportunities for more Albertans in the months ahead,” said Doug, Minister of Jobs, Economy and Innovation, in a news release sent out Friday. Schweitzer said.

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