RE:Managment Needs to Explan This SCO PricingLet’s compare Apples with Apples.
Shown below is how Suncor has reported prices for their products. Note that Suncor does not report pure SCO pricing. Intriguing? It is a mix of sweet SCO and diesel and also sour SCO and bitumen. The average price for diesel in Q1-14 was 126.42/bbl. If they are selling a mix of sweet SCO and diesel, you should expect a higher price.
---------------------------------------------------------
($/bbl) 2014
Oil Sands operations
Sweet SCO and diesel 115.11
Sour SCO and bitumen 79.62
Oil Sands Ventures
Syncrude – Sweet SCO 105.93
---------------------------------------------------------
COS 105.73
Below the first set of numbers, they show, Oil Sands Ventures, and then Syncrude sweet SCO @ $105.93/bbl, which is 20¢ more than what COS reports. Also appreciate that it is not clear what the $105.93 refers to. It could be just an average SCO price they are reporting obtained from First Energy or Bloomberg. I think it is just an average industry price since they did not report a pure sweet SCO in their report. It looks like they are also trying to partially hide their sweet SCO price.
Recall that Suncor is a refiner so it has the ability to upgrade their bitumen to SCO and then give it an additional upgrade to diesel.
Time to slow down on the witch hunt.
Namsoc