RE:Suncor Updated Financial Projections: Better than BeforeThanx Migraine
Stunning reduction in net debt from $13.1 billion at the end of 2021 to $4.5 billion at the end of 2022 and less than zero debt (more cash than debt) by the end of 2023. I assume the actual will be much higher as the company is reallocating a chunk of the windfall on its NCIB. Unless SU decides to expand its CAPEX, the company is going to have to increase its dividend as the debt disappears.
2022 income is projected to be up by 167% YoY in 2022 and then declining by 13% in 2023.
I assume the analyst is expecting oil prices to come off a bit in 2023 as opposed to planed shutdowns (I don't have access to any of the notes or assumptions).
The share price is still playing catch up. As long as SU keeps its nose clean, I assume that at some point in time the market will hopefully stop penalizing SU for the past. My expectation is that another year of "meet or beat" numbers will do the trick.
In the meantime, the forward multiples are ridiculously low which offers a realistic expectation of multiple expansion.