Suncor’s Stock Performance: Trading below 200-Day Moving Average
Must-Read Company Overview of Suncor Energy: An Oil Sand Play
Stock performance of integrated energy companies
In 2015, falling oil prices have impacted the earnings of the integrated energy companies. This reflects on the stock performance of these companies. In the trailing 12 months to February 26, 2016, Suncor Energy (SU) saw its stock plunge by 20%.
Suncor’s peers Chevron (CVX) and Royal Dutch Shell (RDS.A) fell by 21% and 30%, respectively, during the same period. Similarly, BP Plc. (BP) declined by 30%. This has also impacted the Vanguard Energy ETF (VDE), which has 42% exposure to integrated oil and gas companies.
Suncor’s stock performance
Suncor Energy’s downward spiral started in mid-2014 when oil prices started declining. Amid this volatility, the trend continued due to falling oil prices. However, in October 2015, the stock crossed over its 50-day moving average. SU stayed above the moving average for a brief period, during which the company announced its third quarter results. SU bought an additional interest in the Fort Hills oil sands project from Total E&P Canada, a subsidiary of Total SA (TOT).
Suncor Energy’s stock resumed its downfall in December 2015 and broke below its 50-day moving average. Recently, Suncor posted its 4Q15 earnings, which were lower than Wall Street analysts’ estimates and which led to downward pressure on the stock price. Currently, Suncor is in the process of acquiring Canadian Oil Sands Ltd. SU currently trades just above its 50-day moving average, but the stock continues to trade below its 200-day moving average.
Lower oil prices affected SU’s 4Q15 earnings
Suncor Energy (SU) saw its net earnings slump from $84 million Canadian in 4Q14 to -$2,007 million Canadian in 4Q15 due to losses in oil sands and E&P (exploration and production) segments.
On the other hand, SU’s refining segment’s net earnings rose from $173 million Canadian in 4Q14 to $498 million Canadian in 4Q15 due to better refining margins. Suncor (SU) reported EPS (earnings per share) of -$1.40 Canadian in 4Q15.
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