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Suncor Energy increasing quarterly dividend

Canada’s largest energy company, Suncor Energy Inc. (TSX:SU), announced Monday on the eve of its annual meeting and first-quarter earnings report a 10 per cent increase in its quarterly dividend to 11 cents per common share.

CALGARY — Canada’s largest energy company, Suncor Energy Inc. (TSX:SU), announced Monday on the eve of its annual meeting and first-quarter earnings report a 10 per cent increase in its quarterly dividend to 11 cents per common share.

The dividend will be payable June 24 to shareholders of record at the close of business on June 3.

Based on its closing share prices of $44.01 on Monday, that would make the annual yield on the stock about one per cent.

“This is an appropriate and balanced increase that provides immediate rewards to our shareholders while we pursue our next phase of growth and drive future rewards,” chief financial officer Bart Demosky said in a release announcing the increase.

Analysts polled by Thomson Reuters have been, on average, expecting Suncor to report earnings of 77 cents per share on revenues of $10.26 billion in the quarter.

Suncor became Canada’s largest energy company when it merged with Petro-Canada in 2009. Through the transaction, it inherited oil assets in Libya. As conflict broke out in Libya in February, Suncor pulled its employees out of the North African country.

Suncor is the largest operator in the oilsands, with huge mining operations north of Fort McMurray, a 12 per cent interest in the Syncrude Canada Ltd. mine, a 41 per cent stake in the yet-to-be-developed Fort Hills mine and steam-driven operations at Firebag and Mackay river.

In December, Suncor inked a $1.75-billion deal with the Canadian division of France’s Total SA to work together in the oilsands.

The ownership structure at Fort Hills mining project has been shuffled around, leaving Suncor with a 40.8 per cent stake, Total with 39.2 per cent and Teck Resources Ltd. (TSX:TCK.B) with the 20 per cent.

Previously, Suncor had a 60 per cent interest in Fort Hills. Total grabbed its initial 20 per cent stake when it acquired UTS Energy Corp. last year.

In exchange, Suncor has 36.7 per cent of Total’s interest in the undeveloped Joslyn mine. Total will remain operator, with a 38.25 per cent stake, while Occidental Petroleum and Inpex hold the rest.

Total has also snagged a 49 per cent interest in the Voyageur upgrader, which Suncor shelved when the recession hit in late 2008.