MIRA INFORM REPORT

 

 

Report Date :

22.09.2012

 

 

IDENTIFICATION DETAILS

 

Name :

SUNCOR ENERGY INC (PETRO CANADA)

 

Registered Office :

 

150-6 Avenue SouthWest, Calgary, AB T2P 3E3

 

 

Country :

Canada

 

 

Financials (as on) :

31.12.2011

 

 

Year of Establishment :

1919

 

 

Legal Form :

Corporation for Profit

 

 

Line of Business :

Integrated global energy company

 

 

No. of Employees :

13,026

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

Regular

Litigation :

Exists

 

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

CANADA - ECONOMIC OVERVIEW

 

As an affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economiccrisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada''s major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector''s tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010 and 2011 and plans to balance the budget by 2015. In addition, the country''s petroleum sector is rapidly becoming an even larger economic driver with Alberta''s oil sands significantly boosting Canada''s proven oil reserves, ranking the country third in the world behind Saudi Arabia and Venezuela.

Source : CIA


 

GEOPOLITICS – CANADA

 

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal


Economic Risk: Nil

Currency: 1.00 CAD = 1.02654 USD

Branch Situation: Stable

 

 

IDENTIFICATION

 

Comments on data supplied:

Please take note the name provided in the order is that of an old legal name. Its actual legal name is listed below. Also, the address provided is a branch location.

Legal Name:

SUNCOR ENERGY INC (PETRO CANADA)

Trade Name:

PETRO CANADA

Legal Address

150-6 Avenue SouthWest, Calgary, AB T2P 3E3, Canada

Operative Address

150-6 Avenue SouthWest, Calgary, AB T2P 3E3, Canada

Telephone:

+1 403-296-8000

ID :

NA

Fax:

+1 403-296-3030

Legal Form:

Corporation for Profit

Email:

invest@suncor.com

Registered in:

Canada

Website:

http://www.suncor.com/ // http://www.petro-canada.com/

Date Created:

1919

Manager:

Steven W. Williams, CEO

Date Incorporated:

NA

Staff:

13,026

Stock:

Common shares outstanding 1,561,658,318 as at February 17, 2012

 

 

Value:

NA

Activity:

Integrated global energy company.

 

 

BANKS

 

Name of the Bank

CITIBANK


 

BUSINESS

 

HISTORY

 

1917 - Sun Company Inc. opens in Canada supplying lubricating oils, kerosene and spirits to war plants in the Montreal area.

1919 - The first Canadian office opens in Montreal as Sun Company of Canada, it was a subsidiary of Sun Oil (now Sunoco).

In 1979, Sun formed Suncor by merging its Canadian refining and retailing interests; Great Canadian Oil Sands (a majority-owned subsidiary, which constructed and operated the first commercial plant to develop Canada's Athabasca oil sands and went on production in 1967); and its conventional oil and gas interests.

In 1981, the Government of Ontario purchased a 25% stake in the company; it divested in 1993.

In 1993 Sun Oil also divested its interest in the company, although Suncor maintained the Sunoco retail brand in Canada. Suncor took advantage of these two divestitures to become an independent, widely-held public company.

 

The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997.

 

Petro-Canada is a retail and wholesale marketing brand of Suncor Energy. Until 2009, it was a crown corporation of Canada, headquartered at the Petro-Canada Centre in Calgary, Alberta. In August 2009, Petro-Canada merged with Suncor Energy, with Suncor shareholders receiving approximately 60 percent ownership of the combined company and Petro-Canada shareholders receiving approximately 40 percent. The company retained the Suncor Energy name for the merged corporation and its upstream operations. It continues to use the Petro-Canada brand nationwide for downstream retail operations.

 

PRINCIPAL ACTIVITY

 

Suncor Energy Inc., together with its subsidiaries, operates as an integrated energy company. It specializes in production of synthetic crude from oil sands.

Products/Services description:

 

The company involves in the development of petroleum resource basins in Canada's Athabasca oil sands; acquisition, exploration, development, production, and marketing of crude oil and natural gas in Canada and internationally; transportation and refining of crude oil; and marketing of petroleum and petrochemical products primarily in Canada.

Its Oil Sands segment produces bitumen recovered from oil sands through mining and in-situ technology, and upgrades it into refinery feedstock, diesel fuel, and by-products. This segment’s products include gasoline and distillates.

The company’s Natural Gas segment acquires, explores, develops, and produces natural gas, natural gas liquids, oil, and by-products from reserves located primarily in western Canada, the Northwest Territories, Alaska, and the Arctic Islands.

Its International and Offshore segment engages in the exploration and production of oil and gas in offshore Newfoundland and Labrador, in the North Sea, and in Libya and Syria.

The company’s Refining and Marketing segment refines crude oil at Suncor's refineries in Edmonton, Alberta; Montreal, Quebec; and Sarnia, Ontario in Canada, as well as in Commerce City, Colorado into a range of petroleum and petrochemical products for sale to retail, commercial, and industrial customers.

It also transports crude oil through pipelines in eastern and western Canada, as well as through wholly-owned pipelines in Wyoming and Colorado; and produces specialty lubricants and waxes.

In addition, this segment operates retail sites in Canada under the Petro-Canada brand; and in Colorado under Phillips 66 and Shell brands.

Suncor Energy Inc. also engages in third-party energy trading activities.

Sales are:

 

Wholesale

Brands:

 

Petro-Canada

Clients:

 

The company serves the following industries:

Adhesives

Agriculture

Automotive

Construction

Drilling / Oil Field

Fleet

Food & Beverage

Forestry

Gas Plants / Pipelines

General Manufacturing

Health and Beauty Aids (HABA)

Mining

Pharmaceutical

Plastics Processors

Power Generation

Operations area:

 

National, International

The company imports from Worldwide, depending on demand

The company exports to Worlwide

Trade References:

 

The person contacted refused to provide the names of their suppliers for us to check the trade references.

Competitors:

 

Anadarko Petroleum Corporation - The Woodlands, TX

BP NGL - Houston, TX

Canadian Natural Resources Limited - Calgary, AB

The subject employs 13,026 employee(s)

Comments on staff:

 

Last Reported Date: 03/1/12

PAYMENTS

 

regular

LOCATION

Headquarters

 

The company is headquartered at 150-6 Avenue SouthWest, Calgary, AB T2P 3E3, Canada.

Branches:

 

The company has several locations within Canada.

 

 

Shareholders - Manager - Related Companies

 

Listed at the stock exchange:

 

YES

Capital:

 

As at February 17, 2012, the total number of common shares outstanding was 1,561,658,318 and the total number of exercisable and non-exercisable common share options outstanding was 60,712,741. Once exercisable, each outstanding common share option is convertible into one common share.

Shareholders Parent Company(ies):

 

NA

Management:

 

Executives:

Steve Williams, president and chief executive officer (CEO)

Eric Axford, executive vice-president, Business Services

Bart Demosky, chief financial officer

Paul Gardner, senior vice-president, Human Resources,

Boris Jackman, executive vice-president, Refining and Marketing

François Langlois, senior vice-president, Exploration and Production

Mark Little, executive vice-president, Oil Sands and In Situ

Mike MacSween, executive vice-president, Major Projects

Janice Odegaard, general counsel and senior vice-president, Legal

Steve Reynish, executive vice-president, Oil Sands Ventures

Kris Smith, senior vice-president, Supply, Trading and Corporate Development

 

Board of Directors:

 

John Ferguson

Director since 1995

Chairman of the Board

 

Steve Williams

Director since 2011

President and chief executive officer (CEO)

Suncor Energy Inc.

 

Mel Benson

Director since 2000

Member, Environment, Health, Safety and Sustainable Development Committee

Member, Human Resources and Compensation Committee

 

Dominic D'Alessandro

Director since 2009

Chair, Governance Committee

Member, Audit Committee

 

Doug Ford

Director since 2004

Member, Human Resources and Compensation Committee

Member, Governance Committee

 

Paul Haseldonckx

Director since 2009

Chair, Environment, Health, Safety and Sustainable Development Committee

Member, Audit Committee

 

John Huff

Director since 1998

Member, Human Resources and Compensation Committee

Member, Environment, Health, Safety and Sustainable Development Committee

 

Jacques Lamarre

Director since 2009

Member, Audit Committee

Member, Environment, Health, Safety and Sustainable Development Committee

 

Maureen McCaw

Director since 2009

Member, Human Resources and Compensation Committee

Member, Environment, Health, Safety and Sustainable Development Committee

 

Mike O'Brien

Director since 2002

Chair, Audit Committee

Member, Governance Committee

 

James Simpson

Director since 2009

Chair, Human Resources and Compensation Committee

Member, Governance Committee

 

Eira Thomas

Director since 2006

Member, Audit Committee

Member, Governance Committee

Related Companies:

 

The company has several subsidiaries and affiliated companies.

 

Financials - COMMERCIAL TRENDS AND FORECAST

 

 

The subject is a public company. Suncor’s common shares (symbol: SU) are listed on the TSX and NYSE. Please find enclosed the financial statements.

 

 

 

Legal Filings

 

 There are various claims, lawsuits, and pending actions against the Company and its subsidiaries incident to the operations of its business. It is the opinion of management, after consultation with counsel, that the ultimate resolution of such claims, lawsuits and pending actions will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity.

 

 

 

Rating

 

Local credit bureau gave a Good credit rate.

 

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

 

 

 Final Opinion

 

The subject is a big size company.

 

It started its operations in 1917. Therefore, it has an excellent experience in its field.

 

SUNCOR ENERGY INC is an integrated energy company strategically focused on developing Canada's Athabasca oil sands.

 

It is a public company.

 

On March 23, 2009, Suncor announced the acquisition of Petro-Canada. The merger with Canada's 11th largest company was completed on August 1, 2009 in a $21 billion deal to form the second-largest company in Canada.

 

The company has a good business structure, with several affiliated companies, subsidiaries and a large workforce.

 

The business has won several awards, and has an excellent reputation in the market.

 

 

SUMMARY

 


FINANCIAL SUMMARY


DEBT COLLECTIONS AND PAYMENTS

 

Profitability

GOOD

Public

YES

 

Indebtedness

CONTROLLED

Payments

REGULAR

 

Cash

NORMAL

 

 

 

 

 

APPENDIX

 

Comments

 

We have contacted a female representative from the Human Resources Department who kindly informed us that Petro Canada Lubricants Inc (Petro-Canada) is currently operating as a non-incorporated Division of SUNCOR ENERGY INC.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.90

UK Pound

1

Rs.87.60

Euro

1

Rs.70.01

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.