Financial Results
- 2006 Business Results
- Joint Venture Operating Costs
- Stage 3 Project Complete
- 2006 Operational Highlights
- Research and Development
- 2007 Outlook
About Our Financial Reporting
Letter from Syncrude’s Controller – Syncrude Canada Ltd. operates the Syncrude Project on behalf of the Syncrude Project Joint Venture participants. Syncrude’s business activities are restricted to the operation of the Syncrude Project and as such Syncrude does not own its production nor does it sell or receive revenue from its production. Syncrude does incur operating costs and capital expenditures associated with its operations, and each Joint Venture participant accounts for their proportionate share of Syncrude’s production and costs in accordance with their stated accounting policies. Accordingly, Syncrude is not able to provide conventional financial statements.
Certain additional costs and obligations are funded directly by each Joint Venture participant. These include reclamation and site restoration obligations, hedging of commodity prices and foreign exchange, owner marketing and administrative costs, and pension costs dependent on market performance and changes in discount rates.
Financial information presented here has been prepared by management in accordance with accounting principles generally accepted in Canada and includes certain amounts based on estimates and management’s best judgments. This information is presented in un-audited form.
Management maintains a system of internal controls that provides reasonable assurance that all transactions are recorded, that the information provided realistically portrays the operating and business results, and that the assets of the Syncrude Project are safeguarded. Syncrude’s internal auditors review and evaluate compliance with internal controls. The Board of Directors of Syncrude is responsible for ensuring that management meets the requirements for internal control and financial reporting. The Audit and Pension Committee of the Board of Directors discharges this responsibility and engages an external auditor to conduct an independent review of the financial reports and management’s assessment of the effectiveness of its system of internal control over financial reporting.
Syncrude’s policy and practice is to meet a high standard of ethical conduct in all of its activities, and to continuously improve its systems of internal business controls. Toward this end, the Syncrude organization upgraded its control systems and processes throughout 2005 and 2006 to ensure effective compliance with Bill C198 and related CSA regulation MI52-109.
DOUGLAS G. ALLEN
CONTROLLER