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CALGARY, Alberta -- In its second quarter earnings statement, Canadian oil firm Suncor Energy Inc. noted progress being made on its merger with Petro-Canada.
Since the merger was announced by the companies March 23, 2009, Suncor and Petro-Canada received shareholder, court and Competition Bureau approval. All the conditions necessary to complete the transaction are satisfied, and Suncor and Petro-Canada plan to make the merger effective Aug. 1, 2009.
As previously reported by CSNews Online, the combined entity will operate and trade under the Suncor name, while the Petro-Canada name will remain on its refined products.
At the time of the merger completion, all capital projects from both predecessor companies will be reviewed, and investment will be made in those projects with the strongest near-term cash flow potential, highest anticipated return on capital and lowest risk, the company stated. Suncor operates a refining and marketing business, which includes refining, retail, pipeline and distribution operations in Ontario, Canada, and Colorado and Wyoming.
During the second quarter 2009, Suncor saw a net loss of CDN $51 million, compared to net earnings of CDN $829 million in the comparable quarter. A decrease in earnings and cash flow was attributed to lower price realizations, as crude oil prices were "significantly weaker" in the second quarter 2009 over the same period in 2008, the company stated.
"During the second quarter, we saw the fruits of last year's labor," Rick George, president and chief executive officer of Suncor, said in a statement. "As we look to the second half of the year, we are confident we are well-positioned to take advantage of any improvement in commodity prices with more reliable operations."
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