Suncor Energy Announces Major Safety Improvements and New Strategic Direction
Suncor Energy Inc. chief executive Rich Kruger has revealed significant progress in workplace safety, announcing that worker injuries and incidents have decreased by 70 percent over the past three years. This announcement comes at a critical time for oil sands producers, as workplace safety faces renewed scrutiny following recent fatalities in the industry.
Record Safety Performance in 2025
During the company's fourth-quarter earnings call, Kruger declared that 2025 was the safest year in Suncor's corporate history. "Across the board: fewer incidents, lower severity, both personnel and process safety," Kruger stated. "Relative to 2022, injuries and incidents are down 70 percent in three years. This is a credit to our people, our priorities and our processes."
This safety improvement represents a dramatic turnaround for the energy giant. Prior to Kruger assuming leadership in April 2023, Suncor had faced substantial criticism for maintaining the worst safety record among its industry peers. Between 2014 and 2022, the company experienced the deaths of a dozen employees and contractors, contributing to operational challenges that ultimately led to the resignation of former CEO Mark Little.
Safety Under Renewed Scrutiny
The safety announcement arrives amidst heightened attention on workplace conditions in Alberta's oil sands region. Provincial occupational health and safety investigators continue to examine an incident last month at Suncor's Fort Hills mine north of Fort McMurray, where a worker died after equipment sank into muskeg. The company indicated that early evidence suggested this may have resulted from a medical event.
This January fatality marks the first under Kruger's leadership, which has otherwise overseen substantial safety improvements. The incident follows another recent tragedy in the industry, where a worker was killed and another seriously injured while unloading pipe at Cenovus Energy Inc.'s Christina Lake North project in northeastern Alberta.
New Strategic Plans Unveiled
Kruger announced that Suncor will introduce a new three-year improvement plan alongside a longer-term 15-year strategy focused on "bitumen supply and development options." These strategic initiatives will be presented at the company's investor day conference on March 31.
"We know it needs to be bold and ambitious, clear and compelling to keep your interest and support," Kruger emphasized regarding the upcoming plans.
The new strategy follows the successful completion of a previous three-year improvement plan launched in 2024, which the company finished ahead of schedule. Kruger, who previously led Imperial Oil Ltd., was appointed by Suncor's board to address both safety concerns and years of operational underperformance.
Financial Performance and Operational Results
In its fourth-quarter earnings report, Suncor disclosed several significant operational achievements:
- Record quarterly upstream production of 909,000 barrels per day
- Record quarterly refinery utilization of 108 percent
- Adjusted funds from operations of $3.2 billion, exceeding analyst expectations
Despite these operational successes, the company reported lower adjusted operating earnings of $1.33 billion for the fourth quarter of 2025, representing approximately a 15 percent decline from the previous year. This decrease reflects weaker refining margins alongside higher royalties and depreciation expenses.
Suncor returned $1.5 billion to shareholders during the quarter through $775 million in share buybacks and $719 million in dividends, demonstrating continued commitment to shareholder value despite earnings challenges.
The combination of improved safety metrics, strategic planning, and solid operational performance suggests Suncor is navigating a complex energy landscape while addressing longstanding concerns about workplace safety in Canada's oil sands industry.
