The company profits for Suncor Energy are down by about 80% in the fourth quarter, largely due to falling oil prices but also as a result of poor performance in the oilsands as well. Suncor Energy is the largest energy business in Canada, and according to a recent conference call the net income of the company in the last 3 months of 2014 was just $84 million, and that is far less than the $973 in net income for the last quarter of 2013. The operating earnings dropped around 60% for the same quarter a year earlier, going from $973 million to only $286 million. According to Steve Williams, the CEO and President of Suncor Energy, “Today’s lower oil prices should not come as a surprise. It was the relatively stable prices of the last few years that were an anomaly.”
The lower company profits for Suncor Energy is not an isolated issue, other energy companies may follow suit. At the beginning of 2015 Suncor announced that they would engage in layoffs and budget cuts across their entire base of operations. $1 billion was dropped from 2015 capital spending programs budgets, and 1,000 job cuts were also announced. This move has made the company rely more on Fort MacMurray, with less reliance placed on temporary workers. Williams continued by saying “Our commitment to capital discipline has put us in a better position to weather the price downturn. These efforts will also allow us to continue to advance long-life growth projects such as Fort Hills and Hebron.”