Calgary - In the first quarter of 2022, Suncor (TSX: SU) (NYSE: SU) generated the highest quarterly adjusted funds from operations in the company's history of $4.1 billion, or $2.86 per share, including record adjusted funds from operations from our Oil Sands assets, as commodity prices increased,' said Mark Little, president and chief executive officer.
Our increased cash flows enabled us to reduce net debt by $728 million and return over $1.4 billion of value to shareholders through $827 million in share repurchases and payment of $601 million in dividends.'
Adjusted funds from operations increased to $4.094 billion ($2.86 per common share) in the first quarter of 2022, compared to $2.110 billion ($1.39 per common share) in the prior year quarter, with adjusted funds from operations in the first quarter of 2022 more than doubling the prior year quarter on a per share basis. Cash flow provided by operating activities, which includes changes in non-cash working capital, was $3.072 billion ($2.14 per common share) in the first quarter of 2022, compared to $2.345 billion ($1.54 per common share) in the prior year quarter.
Adjusted operating earnings increased to $2.755 billion ($1.92 per common share) in the first quarter of 2022, compared to $746 million ($0.49 per common share) in the prior year quarter. The company had net earnings of $2.949 billion ($2.06 per common share) in the first quarter of 2022, compared to $821 million ($0.54 per common share) in the prior year quarter.
In the first quarter of 2022, Oil Sands delivered its highest quarterly adjusted funds from operations(1) on record of $3.414 billion, compared to $1.527 billion in the prior year quarter, supported by strong production from the company's In Situ assets, including Firebag, which produced its 750 millionth barrel of oil during the quarter, and the ramp-up of production at Fort Hills, allowing the company to capture strong upstream pricing. Combined Oil Sands upgrader utilization was 96% compared to 97% in the prior year quarter.
Refining and Marketing (R&M) generated $1.597 billion in adjusted funds from operations(1) in the first quarter of 2022, compared to $1.172 billion in the prior year quarter. The first quarter of 2022 included a first-in, first-out (FIFO) inventory valuation gain, including the impact of commodity risk management activities, of $729 million before-tax, compared to $432 million before-tax in the prior year quarter. On a LIFO basis Suncor's refining and marketing gross margin improved nearly 20% compared to the prior year quarter. Refinery utilization in the first quarter of 2022 was 94%, compared to refinery utilization of 92% in the prior year quarter, as the company's Canadian refineries continued to outperform the national refining industry average.(2)
In the first quarter of 2022, the company returned over $1.4 billion of value to its shareholders through $827 million in share repurchases and payment of $601 million of dividends. As at May 6, 2022, since the start of the year, the company has repurchased $1.3 billion of Suncor's common shares, representing approximately 33 million common shares at an average share price of $39.70 per share, or the equivalent of 2.3% of its common shares as at December 31, 2021.
In the first quarter of 2022, the company reduced net debt by $728 million, primarily due to an early redemption of its outstanding US$182 million 4.50% notes and increased cash and cash equivalents, after making a significant income tax payment of approximately $1.0 billion during the quarter related to the company's 2021 income tax expense.
During the first quarter of 2022, in alignment with Suncor's strategy to maximize value through its core business, the company announced that it is taking steps to optimize its asset portfolio through the planned divestment of its Exploration & Production (E&P) assets in Norway. Subsequent to the quarter, based on interest received in the company's E&P assets in the U.K., the company is exploring the sale of its entire U.K. portfolio, and has also announced plans to divest its wind and solar assets to focus on areas of energy expansion that are more complementary to its base business, with an emphasis on hydrogen and renewable fuels.
Subsequent to the quarter, Suncor's Board of Directors (the Board) approved a quarterly dividend of $0.47 per share, which represents an increase of 12% over the prior quarter dividend and the highest quarterly dividend per share in the company's history. Also, the Board and the Toronto Stock Exchange (TSX) approved an increase to the company's normal course issuer bid program (NCIB), to increase the maximum number of common shares the company may repurchase to up to approximately 10% of Suncor's public float as at January 31, 2022.
Contact:
Tel: 833-296-4570
Email: media@suncor.com
SUNCOR ENERGY INC. 
