Elliott said the company would also need to consider selling its network of retailers across Canada to unlock a higher share price. The Calgary-based company is the largest oil producer with the worst performance in Canada since early 2021. Analysts said the stock was plagued by a number of operational problems, including a fire that injured a refinery in March and fatal accidents over the past two years. Suncor also reduced its production guidance at the Fort Hills oil field in 2021 after finding that the slopes of the mine were not stable. Suncor rose 10 percent to $ 46.38 at 10:09 a.m. in Toronto. The company did not immediately respond to a request for comment. “Suncor is now plagued by recurring operational challenges and security issues,” wrote Elliott associate John Pike and Portfolio Manager Mike Tomkins in a letter to the company, which noted lost production targets and high costs. Elliott, founded by Paul Singer, has not nominated directors for this year ‘s annual general meeting scheduled for May 10. The company, which holds a 3.4 per cent financial stake in Suncor, could increase that stake or work with other shareholders. a special meeting if the company resists change, according to a person familiar with the matter. The “full uptrend” of a restructuring plan would put Suncor’s share price at $ 68, an increase of more than 50 percent from Wednesday’s close, the company said in a statement. “Our investment in Suncor is based on our belief that, with the right leadership, the company can restore its former success. “Suncor’s integrated sand and oil activities are a critical part of the global energy supply and we believe these assets are dramatically undervalued,” Pike and Tomkins wrote in the letter. While the stock has returned 107 percent since the beginning of last year, as of Wednesday, these gains have fallen by 172 percent of Canadian Natural Resources Ltd. the same period. Cenovus Energy Inc. has returned more than 200 percent and Imperial Oil Ltd. 168 percent. Items include dividends. “Given how long the security issues have been going on and the number of deaths they have had, I think it is a fair criticism to say that their gaze was not on the safety ball as it was,” Eric Nuttall, chief executive officer of Ninepoint Partners, told BNN Bloomberg Television. Nuttall called Elliott “the real deal” and said his appearance at Suncor could lead to more activists and value investors looking at Canadian energy stocks.
