Suncor Energy announced its long-awaited change in its upper ranks, appointing former Imperial Oil boss Rich Kruger as its new CEO..Kruger, an American transplant with almost 40 years experience at Exxon-Mobil, will assume his new duties on April 3, according to Tuesday announcement. Interim CEO Kris Smith will become chief financial officer. Alister Cowan, the current CFO, plans to retire, but has offered to remain with the company through the end of the year to support the transition and provide advisory services, the company said in a release..Kruger is no stranger to Canada or the oil sands. He previously served as Imperial Oil’s president and chief executive from 2013 before retiring in 2019. Under his tenure he successfully brought the $31.2-billion Kearl oil sands mine — the largest capital investment in the company’s history — on stream with a nameplate capacity of 345,000 barrels per day (bpd). He also oversaw the sale of the company’s Esso retail gas stations..“I am very excited and energized about the opportunity to lead Suncor into the next chapter,” said Kruger said in a statement..“Suncor has great people and assets. Combined with strong leadership and the right culture, we can leverage the company’s competitive advantages to excel.”.Kruger’s appointment is believed to have been forced by US-based activist investor Elliot Investment Management, which in 2022 pressed for an overhaul of Suncor’s board and management following concerns over the company’s financial performance and operational safety after more than a dozen employees were killed at Suncor sites since 2014..In July of last year Suncor and Elliot reached an agreement to provide it with three seats on Suncor’s board of directors and in January added a fourth in the event its share price lagged its peers — Canadian Natural Resources, Cenovus and Imperial itself — by more than 10% in 2022. By December 31 it lagged the group by 15%..“Rich is a highly capable and seasoned CEO with an impressive track record of leading a safety culture,” added Suncor chairman Mike Wilson..“Known as a strong and engaging leader, Rich is well regarded for his strategic and commercial aptitude, and for his experience in the Canadian oil sands.” .In addition to his oil sands experience, Kruger also oversaw Syncrude Canada which was operated by Imperial under a management contract until last year when it was taken over by Suncor..Markets reacted positively to the news. Suncor’s shares (SU:NYSE) were up about four bits in New York yesterday, to $33.58 US, or the equivalent of $45.44 on the TSX.
Suncor Energy announced its long-awaited change in its upper ranks, appointing former Imperial Oil boss Rich Kruger as its new CEO..Kruger, an American transplant with almost 40 years experience at Exxon-Mobil, will assume his new duties on April 3, according to Tuesday announcement. Interim CEO Kris Smith will become chief financial officer. Alister Cowan, the current CFO, plans to retire, but has offered to remain with the company through the end of the year to support the transition and provide advisory services, the company said in a release..Kruger is no stranger to Canada or the oil sands. He previously served as Imperial Oil’s president and chief executive from 2013 before retiring in 2019. Under his tenure he successfully brought the $31.2-billion Kearl oil sands mine — the largest capital investment in the company’s history — on stream with a nameplate capacity of 345,000 barrels per day (bpd). He also oversaw the sale of the company’s Esso retail gas stations..“I am very excited and energized about the opportunity to lead Suncor into the next chapter,” said Kruger said in a statement..“Suncor has great people and assets. Combined with strong leadership and the right culture, we can leverage the company’s competitive advantages to excel.”.Kruger’s appointment is believed to have been forced by US-based activist investor Elliot Investment Management, which in 2022 pressed for an overhaul of Suncor’s board and management following concerns over the company’s financial performance and operational safety after more than a dozen employees were killed at Suncor sites since 2014..In July of last year Suncor and Elliot reached an agreement to provide it with three seats on Suncor’s board of directors and in January added a fourth in the event its share price lagged its peers — Canadian Natural Resources, Cenovus and Imperial itself — by more than 10% in 2022. By December 31 it lagged the group by 15%..“Rich is a highly capable and seasoned CEO with an impressive track record of leading a safety culture,” added Suncor chairman Mike Wilson..“Known as a strong and engaging leader, Rich is well regarded for his strategic and commercial aptitude, and for his experience in the Canadian oil sands.” .In addition to his oil sands experience, Kruger also oversaw Syncrude Canada which was operated by Imperial under a management contract until last year when it was taken over by Suncor..Markets reacted positively to the news. Suncor’s shares (SU:NYSE) were up about four bits in New York yesterday, to $33.58 US, or the equivalent of $45.44 on the TSX.
