Rich Kruger says he would consider selling the company’s Petro-Canada retail business.
The Calgary-based oil and gas giant opted to keep its network of more than 1,500 Canadian retail gas station stations in 2022. The decision followed pressure to sell from New York-based activist investor Elliott Investment Management.
At the time, a comprehensive review by Suncor found the company was unlikely to fetch the price it wanted. Suncor estimated Petro-Canada’s net value at between $3.8 billion and $5.7 billion.
Kruger took over as Suncor’s permanent CEO last April Speaking on Tuesday at the 2024 BMO & Canadian Association of Petroleum Producers (CAPP) Energy Symposium in Toronto, he said he would consider selling Suncor’s retail arm in the future. However, he noted a sale is not on his top 10 list of priorities now.
“I think it's a decision we could revisit," Kruger said. “If and when we revisit, and make a different decision, I would hope the market would value it accordingly.”
Kruger, a veteran industry executive who previously led Imperial oil ,has overseen a company-wide efficiency push that’s eliminated thousands of jobs at Suncor. His plan to “eliminate work” has also involved rolling out automated technologies at the company’s mine sites.
During his tenure at Imperial, Kruger oversaw the sale of the company’s Esso retail stations to buyers including Alimentation couche-tard
“In a prior life, I had a similar situation, and made a different decision,” he said. “It's just like anything, it's kind of time and circumstances.”
Kruger touted Suncor’s recent partnership with retailer Canadian Tire as adding value to the gas station chain.
“The decision that was made before I arrived to retain the retail, I don’t take any particular issue with that,” he said. “But that doesn’t mean that’s the decision forever.”