Canada’s biggest integrated oil producer and refiner, Suncor Energy Inc. (SU) reported an oil spill at its Port of Montreal refinery. As per the current estimate, approximately 35 barrels of low-sulfur diesel seeped out into the St. Lawrence River .
The emergency response team of Suncor rushed to the accident site along with the Montreal fire department. The leakage has been brought under control and containment booms were installed into the river to pump out the fuel from the river water.
Suncor spokesperson commented that although there has been no visible blow to the underwater life, the incident will be thoroughly investigated. The company, with its full strength, is in the process of recovering at least 30 barrels of diesel as soon as possible.
This is the second catastrophe that Suncor faced, following the fire in one of the company’s two oil sands upgraders (U1), north of Fort McMurray, in February.
Alberta-based Suncor is involved in oil sands development and upgrading, conventional and offshore crude oil and gas production, petroleum refining and product marketing under the Petro-Canada brand.
With the combination of large oil sands and conventional production platform, substantial oil sands reserves and a notable downstream portfolio, Suncor is poised to drive healthy growth over the remainder of 2010.
We believe the company has a distinct competitive edge over its peers, thanks to the number of oil sands projects, operating efficiency and prudent cost saving initiatives.
However, we maintain a long-term Neutral rating on the shares, taking into consideration the company’s high debt level, exposure to volatile oil and gas prices along with operational hazards and exploration and development risks.
Suncor currently retains a Zacks #3 Rank (short-term Hold rating).
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