Suncor Energy Inc. has decided to keep its Petro-Canada retail business, the company announced Tuesday, after a comprehensive review that included what it would mean to sell the operations.
The company said it would instead improve its retail operations, including expanding strategic partnerships in non-fuel-related businesses such as quick service restaurants, convenience stores, loyalty partnerships and energy transition offers.
Suncor undertook a review of Petro-Canada after reaching a deal earlier this year with activist investor Elliott Investment Management LP, which expressed frustration with the company’s performance.
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Mike Wilson, chairman of Suncor, says the company’s board has concluded that retaining and optimizing the retail business will generate the highest long-term value for shareholders.
“Petro-Canada is a unique, differentiated and strategic asset because of its strong national network and best-in-market consumer brand and loyalty program,” Wilson said in a statement.
The review included an analysis of the business, including an assessment of the value of Suncor’s integrated model, studies on the future of retail in Canada and Petro-Canada’s growth plans.
Suncor said the board also reviewed preliminary indications of interest in the retail business.
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The decision to retain the retail business came as Suncor announced its 2023 production outlook and capital program.
Capital spending in 2023 is expected to be between $5.4 billion and $5.8 billion.
The company says it expects total production next year to be between 740,000 and 770,000 barrels of oil equivalent per day.
Refinery throughput for 2023 is expected to be 430,000 to 445,000 barrels per day with refinery utilization between 92 and 96 percent.
Refined product sales are expected to be between 550,000 and 580,000 barrels per day.
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