Operating cash flow set a new record of $2,897 million in 2004, up from $1,648 million in 2003, driven by higher crude oil prices and higher production, while total operating costs were essentially unchanged. Owners’ financing costs, income taxes and changes in non-cash working capital are not included.
Operating netbacks reached an all-time high of $33.23 per barrel in 2004, compared with $21.32 in 2003. Over the past four years Syncrude has on average generated higher operating netbacks than Canadian oil and gas producers. When sustaining capital or pro-forma depreciation, depletion and amortization (DD&A) is taken into account, Syncrude’s netbacks have consistently outperformed the Canadian oil and gas industry.