The Daily Chase: Markets take breather after rout; Suncor hikes dividend

There’s relief this morning from the rout in global stock markets.

SUNCOR ATTEMPTS TO COUNTER ACTIVIST

With activist investor Elliott Management breathing down its neck, Suncor is sharing more of its wealth with investors after raking in a record haul from its oil sands operations. The Canadian energy giant’s board raised the quarterly dividend to a record of $0.47 per share, representing a 12 per cent increase from the previous level. It’s symptomatic of how dramatically the industry’s fortunes have turned after Suncor took a hatchet to its dividend two years ago. Additionally, Suncor’s board is expanding its share repurchase program to as much as 10 per cent of the float. Suncor has the wherewithal for those moves after its adjusted funds from operations nearly doubled in the first quarter to $4.09 billion, including a record $3.41 billion from the oil sands. There was also a nugget of strategic news in the earnings release, as Suncor said it’s now considering selling all of its assets in the United Kingdom. No word though on its network of gas stations that Elliott wants to see divested.

HIGH-STAKES DECISION FOR ENERGY SECTOR