Canada’s biggest energy firm and the largest oil sands outfit, Suncor Energy Inc. (SU), reported lower-than-expected second-quarter 2014 results, owing to higher operating cost and lower product sales.

Citi's Report dated July 31, 2014

As we expected Suncor’s operations were impacted by unplanned and planned maintenance activities in both its upstream and downstream operations. This was partially offset by higher price realizations in the upstream segment. During the quarter SU spent ~$271mm to repurchase its shares and ~$655mm during 1H’14. This is slower than its planned repurchases of ~$300-$500mm per quarter. However, SU announced a 22% increase in the dividend signaling that management believes SU's business can support a more stable return of cash flow back to shareholders. SU currently has ~$1.1 Bn left in its share repurchase authorization. We have adjusted our estimates to reflect the new share count and company guidance