High oil prices propel profits for Canadian oil companies

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High oil prices propel Canadian oil company profits

Canadian Natural defends its dividend hike by pointing out its contribution to government revenue.

Even though the price of oil has fluctuated since its peak in June, it remains high enough to pay big dividends for Canadian oil companies.

Like Imperial Oil and Cenovus, Suncor and Canadian Natural Resources companies posted higher profits in the third quarter of the year.

Canadian Natural Resources said $2.8 billion in net profit, up $600 million from the same period in 2021.

Even if the price of oil has not returned to the peaks of June, the price per barrel on the North American market, the West Texas Intermediate (WTI), has remained above the 80 mark. US dollars because of the war in Ukraine, sanctions against Russia and production cuts by member countries of the Organization of the Petroleum Exporting Countries (OPEC).

The company increased its dividend by 13% and reported returning nearly $10 billion to shareholders year-to-date through dividend increases and share buyback programs.

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Like his counterpart at Cenovus, Canadian Natural President Tim McKay, however, emphasized his company's contribution to Canadian governments. Payments to governments were significant in 2022. Income tax, property tax and royalties brought in about $11 billion this year, up $6 billion, he pointed out.

Tim McKay has also expressed confidence that work on the carbon capture and storage project in which his company is involved can begin next year.

< p class="e-p">Several groups and politicians are calling on oil companies to invest more of their profits in job creation and the reduction of greenhouse gas emissions.

For its part, the Suncor reported a loss of $609 million in the third quarter, attributed to its takeover of Teck Resources' shares in the Fort Hills oil sands project. His adjusted profit, however, came in at $2.6 billion, double the same period last year.

Unlike his counterparts, the president by interim Kris Smith has stayed away from debates about oil company profits. He says he is focusing his efforts on improving the company's safety record, which had led to a depreciation in the value of the company.

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