Rich Kruger, who led Imperial Oil Ltd. as president and CEO from 2013 until his retirement in 2019, has been named the new chief executive of Suncor Energy Inc. after a months-long search, said Reuters.
The Calgary-based oil producer and refiner made the announcement Tuesday, bringing an end to months of speculation and anticipation by analysts and investors. The 63-year-old Kruger, who will take the top job on April 3, will replace interim CEO Kris Smith, who stepped in to fill the role after Mark Little resigned in July 2022 amid investor pressure and in the wake of a spate of workplace deaths and safety incidents.
Suncor said Tuesday that following a transition period, Smith will assume the role of chief financial officer and executive vice-president of corporate development after Suncor's annual general meeting on May 9. Alister Cowan, the current CFO, is set to retire at the end of the year, the company said Tuesday.
The naming of Kruger as CEO should satisfy those who wished to see change at the top of Suncor, said Scotiabank analyst Jason Bouvier in a note Tuesday. "We view these changes as positive as it will provide those in the market that wanted a change in leadership with an actionable event," Bouvier said.
"Rich brings considerable oilsands experience and a strong history of operational safety to the role." Two of the board directors serving on the CEO search committee were named to Suncor's board in July, as part of a deal the company struck to appease U.S.-based activist investor Elliott Investment Management.
Elliott publicly expressed frustration last spring at what it called a recent decline in performance at the energy producer. The activist investor also criticized Suncor for its safety record. At least 12 workers have died at the company's oilsands operations in northern Alberta since 2014, and former CEO Little resigned just one day after the most recent fatality.
We remind, ExxonMobil awarded a front-end engineering and design (FEED) contract to Technip Energies for a blue hydrogen project at its complex in Baytown, Texas. ExxonMobil described the contract as the largest of its kind in the world. The company could make a final investment decision (FID) on the project in 2024. If ExxonMobil proceeds, it could start operations in 2027-2028. Financial details were not disclosed.
mrchub.com