Oil sands takes heart with Warren Buffett Suncor investment
Warren Buffett’s Berkshire Hathaway Inc said it had taken a fresh stake in Suncor Energy Inc for the second time in about six years, sending the U.S.-listed shares of the energy major up four per cent in after-market trading.
Suncor, Canada’s biggest oil and gas company, is considered one of the safest Canadian energy companies to invest in, given its integrated structure and diversified business mix.
Berkshire’s investment puts the Buffett stamp on Suncor and could be seen as a positive for the Canadian energy sector, according to the Financial Post. The move comes at a time when global investors have been pulling away from Canada because of its carbon-intensive oil sands and struggle to approve pipelines.
Berkshire said in a filing with the U.S. Securities and Exchange Commission that it has a stake of 10.8 million shares in the company, representing about 0.7 per cent of Suncor’s total outstanding shares, according to Eikon data from Refinitiv.
Ahead of Thursday’s news, Suncor’s shares had shed 17.3 per cent in the last six months, due in part to Alberta’s decision to force mandatory production cuts last year.
(Financial Post/National Post)