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Suncor CEO Rich Kruger open to selling Petro-Canada gas station chain

Jeff Lagerquist
·2 min read
Cars pull in and out of a Petro-Canada station in Vancouver Tuesday March 23, 2004. The federal government will sell its 19 per cent stake in Petro-Canada that could mean a windfall of $3 billion for the federal treasurey.(CP PHOTO/Chuck Stoody)
Suncor opted to keep its retail gas station in 2022, following pressure to sell from New York-based activist investor Elliott Investment Management. (CP PHOTO/Chuck Stoody) (The Canadian Press)

Suncor Energy (SU.TO)(SU) CEO Rich Kruger says he would consider selling the company’s Petro-Canada retail business.

The Calgary-based oil and gas giant opted to keep its network of more than 1,500 Canadian retail gas station stations in 2022. The decision followed pressure to sell from New York-based activist investor Elliott Investment Management.

At the time, a comprehensive review by Suncor found the company was unlikely to fetch the price it wanted. Suncor estimated Petro-Canada’s net value at between $3.8 billion and $5.7 billion.

Kruger took over as Suncor’s permanent CEO last April. Speaking on Tuesday at the 2024 BMO & Canadian Association of Petroleum Producers (CAPP) Energy Symposium in Toronto, he said he would consider selling Suncor’s retail arm in the future. However, he noted a sale is not on his top 10 list of priorities now.

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“I think it's a decision we could revisit," Kruger said. “If and when we revisit, and make a different decision, I would hope the market would value it accordingly.”

Kruger, a veteran industry executive who previously led Imperial Oil (IMO.TO)(IMO), has overseen a company-wide efficiency push that’s eliminated thousands of jobs at Suncor. His plan to “eliminate work” has also involved rolling out automated technologies at the company’s mine sites.

During his tenure at Imperial, Kruger oversaw the sale of the company’s Esso retail stations to buyers including Alimentation Couche-Tard (ATD.TO), 7-Eleven Canada, and Parkland (PKI.TO).

“In a prior life, I had a similar situation, and made a different decision,” he said. “It's just like anything, it's kind of time and circumstances.”

Kruger touted Suncor’s recent partnership with retailer Canadian Tire as adding value to the gas station chain.

“The decision that was made before I arrived to retain the retail, I don’t take any particular issue with that,” he said. “But that doesn’t mean that’s the decision forever.”

Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.

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