NEW YORK (TheStreet) -- Shares of Suncor Energy (SU) are down -2.33% to $40.90 as the company's reduced spending for its Joslyn oil-sands mining project led the oil producer to report a 69% profit slump, its lowest in six quarters, Bloomberg reports.
Net income fell to C$211 million ($194 million), or 14 cents pershare, in the second quarter from C$680 million, or 45 cents, a year ago, the company said.
Suncor booked an after-tax charge of C$718 million associated with the Joslyn project, a venture with France's Total (TOT), Bloomberg noted.
Suncor also cut its spending plan to C$6.8 billion from a previous target of C$7.8 billion this year in a bid to further reduce costs and invest in the most profitable projects, the company said.
TheStreet Ratings team rates SUNCOR ENERGY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUNCOR ENERGY INC (SU) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."