Suncor Energy reported a net loss was $3.525 billion ($2.31 per common share) in the first quarter of 2020 compared to net earnings of $1.470 billion ($0.93 per common share) in the prior year quarter.

Suncor said its first quarter 2020 operating loss was $309 million ($0.20 per common share), compared to operating earnings of $1.209 billion ($0.77 per common share) in the prior year quarter.

The company also said it will reduce the quarterly cash dividend by 55 per cent to $0.21 per common share from $0.465 per common share. This dividend will be payable on June 25 to shareholders of record at the close of business on June 4.

In the first quarter of 2020, crude oil and refined product realizations declined significantly due to the decline in global commodity benchmarks and demand as a result of the COVID‑19 pandemic and OPEC’s initial plan to increase production, it said.

“The COVID‑19 pandemic has led to an unprecedented decline in demand for transportation fuels and a significant oversupply of crude oil resulting in a substantial decline in crude oil prices,” said Mark Little, president and chief executive officer, in a news release. “Our integrated model and balance sheet strength are distinct advantages coming into this environment, however we have still needed to take significant action to keep the company strong. The focus of the company through this pandemic is to care for employees, contractors, customers and communities by keeping them safe and healthy, and protecting the financial health of the company while keeping an eye to our future. We are confident that with our unique business model, focused actions and dedicated team we will remain strong and continue to provide trusted energy for decades to come.

“With the current market conditions, including increasing global oil inventories, we are highly focused on leveraging our flexibility to maximize value from our existing assets. We have responded to this market disruption by revising the product mix we bring to market in both our upstream and downstream operations. From the reservoir to the gas station, we are optimizing margins through each link in the value chain. Through our ability to upgrade, refine, and sell products to customers through our retail and wholesale network, we will continue to focus on creating long‑term value while meeting our customer’s energy needs.”

Suncor said it has decided to further reduce the 2020 capital expenditure range to $3.6 billion to $4.0 billion, representing a further capital reduction of $400 million at mid‑point compared to the previous guidance. Combined with the March 23 guidance updates, capital guidance has been reduced by $1.9 billion or approximately 33 per cent compared to the original 2020 plan, and operating costs across the business by $1 billion or approximately 10 per cent compared to 2019 levels, it added.