By Judy McKinnon Suncor Energy Inc. SU -3.01% posted slightly stronger second-quarter earnings, helped by higher crude oil prices and strong refining margins, offset partly by lower upstream production volumes. Calgary-based Suncor, Canada's largest energy company by market capitalization and one of its largest oil-sands producers, saw production levels fall for the quarter, due to the sale of non-core assets and planned maintenance. "With major maintenance at our oil-sands operations successfully behind us, we're looking toward a strong second half to the year and steady production through 2012," Rick George, president and chief executive, said in a statement. Suncor's second-quarter earnings rose to C$562 million or 36 Canadian cents a share from C$540 million or 35 Canadian cents a year earlier. Operating earnings, which exclude items, rose 17% to C$980 million or 62 Canadian cents a share, but missed the Thomson First Call mean estimate of 68 Canadian cents a share. Cash flow of C$1.98 billion or C$1.26 a share was up from C$1.77 billion or C$1.13 a year earlier. Suncor said its upstream production averaged 460,000 barrels of oil equivalent a day, down from 633,900 barrels a day a year earlier, but in line with management expectations. It said its production view for the year remains unchanged at 520,000-570,000 barrels of oil equivalent a day. Oil-sands production, excluding the company's share from the Syncrude joint venture, fell in the latest quarter to an average of 243,400 barrels a day from 295,500 a year earlier, mainly due to planned maintenance.

Source