Exhibit 99.1

​

​

Suncor Energy reports second quarter 2025 results

Unless otherwise noted, all financial figures are unaudited, presented in Canadian dollars (Cdn$), and derived from the company’s condensed consolidated financial statements which are based on Canadian generally accepted accounting principles (GAAP), specifically International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), and are prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. Production volumes are presented on a working-interest basis, before royalties, except for production values from the company's Libya operations, which are presented on an economic basis. Certain financial measures referred to in this news release (adjusted funds from operations, adjusted operating earnings, free funds flow and net debt) are not prescribed by Canadian generally accepted accounting principles (GAAP). See the Non-GAAP Financial Measures section of this news release. References to Oil Sands operations exclude Suncor Energy Inc.’s ownership of Fort Hills and interest in Syncrude.

Calgary, Alberta (August 5, 2025)

Second Quarter Highlights

“What stands out the most about our strong second quarter is the outstanding execution of major upstream and downstream turnaround activities, completed safely and ahead of schedule,” said Rich Kruger, President and Chief Executive Officer. “This performance was a key driver behind Suncor’s record-setting second quarter and first half volumes results and positions us extremely well for a strong second half of the year. The quarter once again demonstrates our unwavering commitment and focus on delivering superior results for our shareholders.”

​

​

​

​

​

Second Quarter Results

​

​

​

​

Financial Results

Adjusted Operating Earnings Reconciliation(1)

​

​

​

​

​

Operating Results

​

Corporate and Strategy Updates

Corporate Guidance Updates

Suncor has updated its 2025 corporate guidance ranges, previously issued on December 12, 2024, by reducing 2025 full-year estimated capital spend from $6.1-$6.3 billion down to $5.7-$5.9 billion. Estimated ranges for current income taxes, royalties and business environment have also been adjusted to reflect the current business environment as at August 5.

​

​

For further details and advisories regarding Suncor’s 2025 corporate guidance, see www.suncor.com/guidance.

Non-GAAP Financial Measures

Certain financial measures in this news release – namely adjusted funds from operations, adjusted operating earnings, free funds flow and net debt, and related per share or per barrel amounts – are not prescribed by GAAP. These non-GAAP financial measures are included because management uses the information to analyze business performance, leverage and liquidity, as applicable, and it may be useful to investors on the same basis. These non-GAAP financial measures do not have any standardized meaning and, therefore, are unlikely to be comparable to similar measures presented by other companies. Therefore, these non-GAAP financial measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Except as otherwise indicated, these non-GAAP financial measures are calculated and disclosed on a consistent basis from period to period. Specific adjusting items may only be relevant in certain periods.

Adjusted Operating Earnings

Adjusted operating earnings is a non-GAAP financial measure that adjusts net earnings for significant items that are not indicative of operating performance. Management uses adjusted operating earnings to evaluate operating performance because management believes it provides better comparability between periods. Adjusted operating earnings are reconciled to net earnings in the news release above.

Adjusted Funds From (Used In) Operations

Adjusted funds from (used in) operations is a non-GAAP financial measure that adjusts a GAAP measure – cash flow provided by operating activities – for changes in non-cash working capital, which management uses to analyze operating performance and liquidity. Changes to non-cash working capital can be impacted by, among other factors, commodity price volatility, the timing of offshore feedstock purchases and payments for commodity and income taxes, the timing of cash flows related to accounts receivable and accounts payable, and changes in inventory, which management believe reduces comparability between periods.

​

​

​

​

Free Funds Flow

Free funds flow is a non-GAAP financial measure that is calculated by taking adjusted funds from operations and subtracting capital expenditures, including capitalized interest. Free funds flow reflects cash available for increasing distributions to shareholders and reducing debt. Management uses free funds flow to measure the capacity of the company to increase returns to shareholders and to grow Suncor’s business.

​

​

​

​

Net Debt and Total Debt

Net debt and total debt are non-GAAP financial measures that management uses to analyze the financial condition of the company. Total debt includes short-term debt, current portion of long-term debt and long-term debt (all of which are GAAP measures). Net debt is equal to total debt less cash and cash equivalents (a GAAP measure).

​

​

Legal Advisory – Forward-Looking Information

This news release contains certain forward-looking information and forward-looking statements (collectively referred to herein as “forward-looking statements”) and other information based on Suncor’s current expectations, estimates, projections and assumptions that were made by the company in light of information available at the time the statement was made and consider Suncor’s experience and its perception of historical trends, including expectations and assumptions concerning: the accuracy of reserves estimates; commodity prices and interest and foreign exchange rates; the performance of assets and equipment; uncertainty related to geopolitical conflict; capital efficiencies and cost savings; applicable laws and government policies; future production rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour, services and infrastructure; the satisfaction by third parties of their obligations to Suncor; the development and execution of projects; and the receipt, in a timely manner, of regulatory and third-party approvals. All statements and information that address expectations or projections about the future, and other statements and information about Suncor’s strategy for growth, expected and future expenditures or investment decisions, commodity prices, costs, schedules, production volumes, operating and financial results, future financing and capital activities, and the expected impact of future commitments are forward-looking statements. Some of the forward-looking statements may be identified by words like “expects”, “anticipates”, “will”, “estimates”, “plans”, “scheduled”, “intends”, “believes”, “projects”, “indicates”, “could”, “focus”, “vision”, “goal”, “outlook”, “proposed”, “target”, “objective”, “continue”, “should”, “may”, “future”, “potential”, “opportunity”, “would”, “priority”, “strategy” and similar expressions. Forward-looking statements in this news release include references to: Suncor's strategy, focus, goals and priorities and the expected benefits therefrom, and the anticipated return to normal production at White Rose in in the second quarter. In addition, all other statements and information about Suncor’s strategy for growth, expected and future expenditures or investment decisions, commodity prices, costs, schedules, production volumes, operating and financial results and the expected impact of future commitments are forward-looking statements. Some of the forward-looking statements and information may be identified by words like “expects”, “anticipates”, “will”, “estimates”, “plans”, “scheduled”, “intends”, “believes”, “projects”, “indicates”, “could”, “focus”, “vision”, “goal”, “outlook”, “proposed”, “target”, “objective”, “continue”, “should”, “may” and similar expressions.

Forward-looking statements are based on Suncor’s current expectations, estimates, projections and assumptions that were made by the company in light of its information available at the time the statement was made and consider Suncor’s experience and its perception of historical trends, including expectations and assumptions concerning: the accuracy of reserves estimates; commodity prices and interest and foreign exchange rates; the performance of assets and equipment; capital efficiencies and cost savings; applicable laws and government policies; future production rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour, services and infrastructure; the satisfaction by third parties of their obligations to Suncor; the development and execution of projects; and the receipt, in a timely manner, of regulatory and third-party approvals.

Forward-looking statements and information are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Suncor. Suncor’s actual

​

​

results may differ materially from those expressed or implied by its forward-looking statements, so readers are cautioned not to place undue reliance on them.

Suncor’s Annual Information Form, Annual Report to Shareholders and Form 40-F, each dated February 26, 2025, Suncor’s Report to Shareholders for the Second Quarter of 2025 dated August 5, 2025, and other documents it files from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results and such factors are incorporated herein by reference. Copies of these documents are available by referring to suncor.com/FinancialReports or on SEDAR+ at sedarplus.ca or EDGAR at sec.gov. Except as required by applicable securities laws, Suncor disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

To view a full copy of Suncor’s second quarter 2025 Report to Shareholders and the financial statements and notes (unaudited), visit Suncor's profile on sedarplus.ca or sec.gov or visit Suncor’s website at suncor.com/financialreports.

To listen to the conference call discussing Suncor's second quarter results, visit suncor.com/webcasts. The event will be archived for 90 days.

Suncor Energy is Canada's leading integrated energy company. Suncor's operations include oil sands development, production and upgrading; offshore oil production; petroleum refining in Canada and the U.S.; and the company’s Petro-CanadaTM retail and wholesale distribution networks (including Canada’s Electric HighwayTM, a coast-to-coast network of fast-charging EV stations). Suncor is developing petroleum resources while advancing the transition to a lower-emissions future through investments in lower emissions intensity power, renewable feedstock fuels and projects targeting emissions intensity. Suncor also conducts energy trading activities focused primarily on the marketing and trading of crude oil, natural gas, byproducts, refined products and power. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.

For more information about Suncor, visit our web site at suncor.com.

Media inquiries:

833-296-4570
media@suncor.com

​

Investor inquiries:

invest@suncor.com

​

​

​

​

​

​

​

​

​

​

​

All financial figures are unaudited and presented in Canadian dollars unless noted otherwise. Production volumes are presented on a working-interest basis, before royalties, except for production volumes from Suncor Energy Inc.’s (Suncor or the company) Libya operations, which are presented on an economic basis. Certain financial measures in this document are not prescribed by Canadian generally accepted accounting principles (GAAP). For a description of these non-GAAP financial measures, see the Non-GAAP and Other Financial Measures Advisory section of Suncor’s Management Discussion and Analysis (MD&A) dated August 5, 2025. See also the Advisories section of the MD&A. References to Oil Sands operations exclude Suncor’s ownership of Fort Hills and interest in Syncrude.

Second Quarter Highlights

"What stands out the most about our strong second quarter is the outstanding execution of major upstream and downstream turnaround activities, completed safely and ahead of schedule,” said Rich Kruger, President and Chief Executive Officer. “This performance was a key driver behind Suncor’s record-setting second quarter and first half volumes results and positions us extremely well for a strong second half of the year. The quarter once again demonstrates our unwavering commitment and focus on delivering superior results for our shareholders.”

Second Quarter Results

​

​

​

​

​

​

Financial Results

Adjusted Operating Earnings Reconciliation(1)

​

​

​

Operating Results

​

​

Corporate and Strategy Updates

Corporate Guidance Updates

Suncor has updated its 2025 corporate guidance ranges, previously issued on December 12, 2024, by reducing 2025 full-year estimated capital spend from $6.1-$6.3 billion down to $5.7-$5.9 billion. Estimated ranges for current income taxes, royalties and business environment have also been adjusted to reflect the current business environment as at August 5.

For further details and advisories regarding Suncor’s 2025 corporate guidance, see www.suncor.com/guidance.

​

Management’s Discussion and Analysis

August 5, 2025

Suncor Energy Inc. (Suncor or the company) is Canada’s leading integrated energy company. Suncor's operations include oil sands development, production and upgrading; offshore oil production; petroleum refining in Canada and the U.S.; and the company’s Petro-CanadaTM retail and wholesale distribution networks (including Canada’s Electric HighwayTM, a coast-to-coast network of fast-charging EV stations). Suncor is developing petroleum resources while advancing the transition to a lower-emissions future through investments in lower emissions intensity power, renewable feedstock fuels and projects targeting emissions intensity. Suncor also conducts energy trading activities focused primarily on the marketing and trading of crude oil, natural gas, byproducts, refined products and power. Suncor’s common shares (symbol: SU) are listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE).

For a description of Suncor’s segments, refer to Suncor’s Management’s Discussion and Analysis (MD&A) for the year ended December 31, 2024, dated February 26, 2025 (the 2024 annual MD&A).

This MD&A, for the three and six months ended June 30, 2025, should be read in conjunction with Suncor’s unaudited interim Consolidated Financial Statements for the three and six months ended June 30, 2025, Suncor’s audited Consolidated Financial Statements for the year ended December 31, 2024, and the 2024 annual MD&A.

Additional information about Suncor filed with Canadian securities regulatory authorities and the United States Securities and Exchange Commission (SEC), including quarterly and annual reports and Suncor’s Annual Information Form dated February 26, 2025 (the 2024 AIF), which is also filed with the SEC under cover of Form 40-F, is available online at www.sedarplus.ca, www.sec.gov and on our website at www.suncor.com. Information contained in or otherwise accessible through our website does not form part of this MD&A and is not incorporated into this MD&A by reference.

References to “we”, “our”, “Suncor”, “Suncor Energy” or “the company” means Suncor Energy Inc., its subsidiaries, partnerships and joint arrangements, unless otherwise specified or the context otherwise requires.

Basis of Presentation

Unless otherwise noted, all financial information is derived from the company’s condensed Consolidated Financial Statements, which are based on Canadian generally accepted accounting principles (GAAP), specifically International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board, and are prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting.

All financial information is reported in Canadian dollars, unless otherwise noted. Production volumes are presented on a working-interest basis, before royalties, except for production volumes from the company’s Libya operations, which are presented on an economic basis.

References to Oil Sands operations exclude Suncor’s ownership of Fort Hills and interest in Syncrude.

Common Abbreviations

For a list of the abbreviations that may be used in this MD&A, please refer to the Common Abbreviations section of this MD&A.

Table of Contents

​

​

​

1. Second Quarter Highlights

​

Management’s Discussion and Analysis

2. Consolidated Financial and Operating Information

Financial Highlights

​

​

​

​

Operating Highlights

​

​

Financial Results

Net Earnings and Adjusted Operating Earnings

Adjusted Operating Earnings Reconciliation(1)

​

​

Suncor’s consolidated net earnings for the second quarter of 2025 were $1.134 billion, compared to $1.568 billion in the prior year quarter. Net earnings were primarily influenced by the same factors that impacted adjusted operating earnings discussed below.

Other items affecting net earnings over these periods included:

Management’s Discussion and Analysis

Bridge Analysis of Adjusted Operating Earnings ($ millions)(1)

​

Suncor’s adjusted operating earnings were $873 million ($0.71 per common share) in the second quarter of 2025, compared to $1.626 billion ($1.27 per common share) in the prior year quarter, with the decrease primarily due to lower upstream price realizations, in line with lower benchmark pricing, partially offset by lower royalties and income taxes, and increased sales volumes in both the upstream and downstream.

Adjusted Funds from Operations and Cash Flow Provided by Operating Activities

Adjusted funds from operations were $2.689 billion ($2.20 per common share) in the second quarter of 2025, compared to $3.397 billion ($2.65 per common share) in the prior year quarter, and were primarily influenced by the same factors impacting adjusted operating earnings discussed above.

Cash flow provided by operating activities, which includes changes in non-cash working capital, was $2.919 billion ($2.38 per common share) in the second quarter of 2025, compared to $3.829 billion ($2.98 per common share) in the prior year quarter. In addition to the factors impacting adjusted funds from operations, cash flow provided by operating activities was impacted by a smaller source of cash associated with the company’s working capital balances in the second quarter of 2025 compared to the prior year quarter. Working capital is subject to fluctuations based on commodity prices, the timing of transactions and seasonal factors. The source of cash in the second quarter of 2025 was primarily due to a draw of inventory related to increased sales volumes, partially offset by a decrease in accounts payable and accrued liabilities.

Operating, Selling and General Expenses

​

OS&G expenses remained consistent in the second quarter of 2025, compared to the prior year quarter, as higher commodity input costs and increased mining costs were largely offset by decreased share-based compensation expense. The company’s exposure to commodity costs is partially mitigated by revenue from power sales that are recorded in operating revenues.

​

Business Environment

Commodity prices, refining crack spreads and foreign exchange rates are important factors that affect the results of Suncor’s operations. For additional details, see the Financial Information section of the 2024 annual MD&A.

​

​

​

Management’s Discussion and Analysis

3. Segment Results and Analysis

Oil Sands

Financial Highlights

​

​

Oil Sands segment adjusted operating earnings decreased to $926 million in the second quarter of 2025, compared to $1.745 billion in the prior year quarter, primarily due to lower crude oil price realizations as a result of lower benchmark pricing, partially offset by a corresponding decrease in royalties and increased sales volumes.

​

​

Production Volumes

​

​

Total Oil Sands bitumen production increased to a second quarter record of 860,800 bbls/d, compared to 834,400 bbls/d in the prior year quarter, primarily due to record second quarter production at Firebag and a lower overall maintenance impact in the current period.

The company’s net SCO production was 438,200 bbls/d in the second quarter of 2025, compared to 461,700 bbls/d in the prior year quarter, with upgrader utilization of 91% at Syncrude and 80% at Oil Sands Base, compared to 81% and 92%, respectively, in the prior year quarter. The decrease in SCO production was primarily due to increased upgrader-related maintenance activities in the current period, including the Upgrader 1 coke drum replacement project and turnaround.

Non-upgraded bitumen production increased to 310,200 bbls/d in the second quarter of 2025, compared to 254,300 bbls/d in the prior year quarter, primarily due to increased bitumen production and lower upgrader availability.

​

Management’s Discussion and Analysis

Sales Volumes

​

​

SCO and diesel sales volumes decreased to 440,200 bbls/d in the second quarter of 2025, compared to 453,800 bbls/d in the prior year quarter, primarily due to the decrease in SCO production volumes, partially offset by a draw of inventory in the second quarter of 2025 compared to a build of inventory in the prior year quarter.

Non-upgraded bitumen sales volumes increased to 307,600 bbls/d in the second quarter of 2025, compared to 272,600 bbls/d in the prior year quarter, primarily due to the increase in non-upgraded bitumen production volumes, partially offset by a build of inventory in the second quarter of 2025 compared to a draw of inventory in the prior year quarter.

Price Realizations(1)

​

​

Oil Sands price realizations decreased in the second quarter of 2025 compared to the prior year quarter, primarily due to weaker crude oil benchmark prices, partially offset by narrower heavy crude oil differentials.

Royalties

Royalties for the Oil Sands segment decreased in the second quarter of 2025 compared to the prior year quarter, primarily due to lower bitumen pricing.

Expenses and Other Factors

Total Oil Sands operating expenses increased in the second quarter of 2025 compared to the prior year quarter, primarily due to increased maintenance activities, higher commodity input costs and increased mining activity at Fort Hills, partially offset by decreased share-based compensation expense.

Depreciation, depletion and amortization (DD&A) expense increased in the second quarter of 2025, compared to the prior year quarter, primarily due to the commissioning of new assets and new leases entered into during the quarter, partially offset by decreased depreciation related to the company’s asset retirement obligation assets.

Transportation costs increased in the second quarter of 2025, compared to the prior year quarter, primarily due to increased sales volumes, which included increased exports to the U.S. Gulf Coast.

Financing expense and other, which includes other income, decreased slightly in the second quarter of 2025 compared to the prior year quarter, primarily due to decreased accretion expense related to asset retirement obligations, partially offset by increased interest related to leases.

​

Cash Operating Costs

​

Oil Sands operations cash operating costs per barrel(1) decreased to $27.95 in the second quarter of 2025, compared to $28.45 in the prior year quarter, primarily due to a lower proportion of Fort Hills bitumen being directed to upgrading at Oil Sands Base due to planned maintenance and increased power sales volumes, partially offset by higher natural gas volumes related to increased consumption at the new co-generation facility, higher natural gas prices and decreased production volumes.

Fort Hills cash operating costs per barrel(1) were $36.75 in the second quarter of 2025, compared to $30.60 in the prior year quarter, with the increase primarily due to increased mining activities, increased commodity costs and decreased production volumes due to a longer planned maintenance program in the current year. The production profile for the current year remains in line with the three year mine plan.

Syncrude cash operating costs per barrel(1) decreased to $36.50 in the second quarter of 2025, compared to $40.15 in the prior year quarter, primarily due to increased production volumes, partially offset by increased maintenance activities.

Management’s Discussion and Analysis

Results for the First Six Months of 2025

Oil Sands earnings before income taxes for the first six months of 2025 were $2.519 billion, compared to $3.163 billion in the prior year period. In addition to the factors impacting adjusted operating earnings, earnings before income taxes for the first six months of 2025 included a $27 million unrealized loss on risk management activities, compared to a $53 million unrealized gain in the prior year period.

Oil Sands adjusted operating earnings for the first six months of 2025 were $2.546 billion, compared to $3.110 billion in the prior year period, with the decrease primarily due to lower crude oil price realizations as a result of lower benchmark pricing, partially offset by lower royalties and increased sales volumes.

Oil Sands adjusted funds from operations for the first six months of 2025 were $5.209 billion, compared to $5.551 billion in the prior year period, with the decrease primarily due to the same factors that influenced adjusted operating earnings.

Oil Sands operations cash operating costs per barrel were $27.85 for the first six months of 2025, compared to an average of $27.65 for the first six months of 2024, with the increase primarily due to higher natural gas volumes related to increased consumption at the new co-generation facility and higher natural gas prices, partially offset by increased production volumes and increased power sales volumes.

Fort Hills cash operating costs per barrel were $35.25 for the first six months of 2025, compared to $31.75 in the first six months of 2024, with the increase primarily due to increased mining and maintenance activities, decreased production volumes and increased commodity costs.

Syncrude cash operating costs per barrel decreased to $36.30 for the first six months of 2025, compared to $37.75 in the first six months of 2024, primarily due to increased production volumes, partially offset by increased maintenance activities.

Planned Maintenance Update

The anticipated impact of these maintenance activities has been reflected in the company’s 2025 guidance.

​

​

Exploration and Production

Financial Highlights

​

Adjusted operating earnings for the E&P segment in the second quarter of 2025 were $165 million, compared to $196 million in the prior year quarter, with the decrease primarily due to lower price realizations and increased royalties, largely offset by increased sales volumes.

Volumes

​

E&P production increased to 59,700 bbls/d in the second quarter of 2025, compared to 54,600 bbls/d in the prior year quarter, primarily due to increased production at Hebron and the addition of production at White Rose, which restarted in the first quarter, partially offset by lower production at Terra Nova.

Total E&P sales volumes increased to 65,000 bbls/d in the second quarter of 2025, compared to 46,800 bbls/d in the prior year quarter, primarily due to the same factors that impacted production volumes, as well as the timing of cargo sales in E&P Canada.

Price Realizations(1)

​

​

E&P price realizations decreased in the second quarter of 2025 compared to the prior year quarter, in line with the decrease in benchmark prices for Brent crude.

Royalties

E&P royalties, excluding the impact of Libya, increased in the second quarter of 2025 compared to the prior year quarter, primarily due to higher royalty rates and increased sales volumes.

Expenses and Other Factors

Operating and transportation expenses increased in the second quarter of 2025 compared to the prior year quarter, primarily due to increased sales volumes.

Management’s Discussion and Analysis

Results for the First Six Months of 2025

Earnings before income taxes for E&P for the first six months of 2025 were $323 million, compared to $470 million in the prior year period.

Adjusted operating earnings for E&P for the first six months of 2025 were $323 million, compared to $470 million in the prior year period, with the decrease primarily due to lower realized crude prices and increased royalties, partially offset by increased sales volumes.

Adjusted funds from operations for the first six months of 2025 were $702 million, compared to $865 million in the prior year period, with the decrease primarily due to the same factors that influenced adjusted operating earnings.

Planned Maintenance Update for Operated Assets

There are no significant planned maintenance events for the E&P segment scheduled for the third quarter of 2025.

​

​

Refining and Marketing

Financial Highlights

​

R&M adjusted operating earnings in the second quarter of 2025 were $404 million, compared to $588 million in the prior year quarter. The decrease in adjusted operating earnings was primarily due to a first-in, first-out (FIFO) inventory valuation loss in the second quarter of 2025, compared to a gain in the prior year quarter and a one-time emissions compliance charge in the current quarter, partially offset by increased refinery production and sales volumes.

Volumes

​

Management’s Discussion and Analysis

Refinery throughput increased to a second quarter record of 442,300 bbls/d with utilization of 95%, compared to 430,500 bbls/d and 92%, respectively, in the prior year quarter. The increase was primarily due to strong operating performance and efficient execution of planned maintenance activities.

Refined product sales increased to a second quarter record of 600,500 bbls/d compared to 594,700 bbls/d in the prior year quarter, with the increase primarily due to higher refinery throughput and the execution of the previously announced retail growth plan.

Refining and Marketing Gross Margins(1)

Refining and marketing gross margins were influenced by the following:

Expenses and Other Factors

Operating expenses decreased in the second quarter of 2025 compared to the prior year quarter, primarily due to lower share-based compensation expense and maintenance costs, partially offset by higher commodity input costs. Transportation expenses were comparable to the prior year quarter.

Refining operating expense per barrel(1) decreased to $6.85 in the second quarter of 2025, compared to $6.95 in the prior year quarter, primarily due to lower maintenance costs and higher refinery production, partially offset by higher commodity input costs.

Results for the First Six Months of 2025

R&M’s earnings before income taxes were $1.049 billion for the first six months of 2025, compared to $1.707 billion in the prior year period. In addition to the factors impacting adjusted operating earnings, earnings before income taxes for the first six months of 2025 included a $19 million unrealized gain on risk management activities, compared to a $1 million unrealized gain in the prior year period and a $41 million write-down of an equity investment in the current period.

Adjusted operating earnings for R&M in the first six months of 2025 were $1.071 billion, compared to $1.706 billion in the first six months of 2024, with the decrease primarily due to lower benchmark crack spreads, narrower crude differentials and a FIFO inventory valuation loss in the current period, compared to a gain in the prior year period, partially offset by increased refinery production and sales volumes. In the first six months of 2025, the impact of the FIFO method of inventory valuation, relative to an estimated LIFO method, had a negative impact to adjusted operating earnings and adjusted funds from operations of $142 million, compared to a positive impact of $93 million in the first six months of 2024.

R&M’s adjusted funds from operations in the first six months of 2025 were $1.517 billion, compared to $2.199 billion in the prior year period, with the decrease primarily due to the same factors that influenced adjusted operating earnings.

Planned Maintenance

The anticipated impact of these maintenance activities has been reflected in the company’s 2025 guidance.

​

Corporate and Eliminations

Financial Highlights

​

Corporate incurred an adjusted operating loss of $345 million in the second quarter of 2025, compared to a loss of $206 million in the prior year quarter. The increased loss was primarily attributable to an operational foreign exchange loss in the second quarter of 2025 compared to a gain in the prior year quarter, partially offset by a decrease in share-based compensation expense in the second quarter of 2025 compared to the prior year quarter.

Eliminations reflect the deferral or realization of profit or loss on crude oil sales from Oil Sands to Suncor’s refineries. Consolidated profits and losses are only realized when the refined products from internal purchases have been sold to third parties. During the second quarter of 2025, the company realized $27 million of intersegment profit, compared to a deferral of $89 million in the prior year quarter. The realization of intersegment profit in the second quarter of 2025 was primarily driven by a decrease in intersegment inventory volumes.

Corporate and Eliminations adjusted funds used in operations were $285 million for the second quarter of 2025, compared to adjusted funds used in operations of $221 million in the prior year quarter, and were influenced by the same factors impacting adjusted operating loss, excluding the impact of share-based compensation expense.

Results for the First Six Months of 2025

Corporate and Eliminations loss before income taxes was $167 million for the first six months of 2025, compared to $937 million in the prior year period. In addition to the factors impacting adjusted operating loss, the loss before income taxes for the first six months of 2025 included a $475 million unrealized foreign exchange gain on the revaluation of U.S. dollar denominated debt, compared to a $323 million loss in the prior year period and a $95 million write-down of an equity investment in the current period.

​

The adjusted operating loss for Corporate and Eliminations for the first six months of 2025 was $547 million, compared to $614 million in the prior year period. The decreased loss was primarily attributed to a realization of intersegment profit in the first six months of 2025, compared to a deferral in the prior year period and decreased share-based compensation expense in the first six months of 2025 compared to the prior year period, partially offset by an operational foreign exchange loss in the current period, compared to a gain in the prior year period.

​

Corporate and Eliminations adjusted funds used in operations for the first six months of 2025 were $634 million, compared to $619 million in the prior year period, and were influenced by the same factors impacting adjusted operating loss, excluding the impact of share-based compensation expense.

​

​

​

Management’s Discussion and Analysis

4. Income Tax

​

The provision for income taxes in the second quarter of 2025 decreased to $300 million, compared to $615 million in the prior year quarter, primarily due to lower taxable earnings. In the second quarter of 2025, the company's effective tax rate on net earnings decreased compared to the prior year quarter, primarily due to the impact of non-taxable foreign exchange gains on the revaluation of U.S. dollar denominated debt, and other permanent items impacting total tax expense in the second quarter of 2025.

The provision for income taxes in the first six months of 2025 decreased to $901 million, compared to $1.225 billion in the prior year period, primarily due to lower taxable earnings. In the first six months of 2025, the company's effective tax rate on net earnings decreased compared to the prior year period, primarily due to the impact of non-taxable foreign exchange gains on the revaluation of U.S. dollar denominated debt, and other permanent items impacting total tax expense in the current year.

​

​

5. Capital Investment Update

Capital and Exploration Expenditures by Type, Excluding Capitalized Interest

​