Comparative Analysis: Suncor Energy vs. Enbridge Inc. Business Report

This report offers a comparative analysis of Suncor Energy and Enbridge Inc., two key players in the oil and gas industry. It begins with an introduction to both companies, detailing their primary activities and market positions. The core of the report involves a comparative analysis, evaluating their performance across several financial metrics, including liquidity, efficiency, profitability, and solvency. Suncor Energy's operational efficiency, solvency, and profitability are found to be better than Enbridge. The report references financial data and news articles to support its findings, ultimately concluding with a summary of the comparative advantages and disadvantages of each company. The student used financial data and news articles to support the findings. The report highlights the growth prospects and financial health of both companies within the context of the Canadian oil and gas market.

Running head: INTRODUCTION TO BUSINESS
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Table of Contents
Introduction................................................................................................................................2
Comparative analysis.................................................................................................................2
Conclusion..................................................................................................................................4
Reference....................................................................................................................................5

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Introduction
Suncor Energy is the sustainable and unique energy entity that is dedicated to the
vigorous growth in the worldwide market that is achieved through exceeding or meeting
changing expectations of existing as well as potential shareholders. The entity belongs to the
oil and gas industry and is involved in marketing, exploration and development of natural gas
and oil. Primary activity of it is to mining and crude oil extraction from the deposits of oil
sands (Suncor.com, 2019). It is the 1st company to produce the crude oil commercially from
the oil sand of Alberta and over the period of last 4 decades it has become the major marketer
and energy producer of North America. Being globally competitive, it has balanced portfolio
with strong balance sheet, high quality assets and prospects of significant growth
(Suncor.com, 2019).
On the other hand, Enbridge Inc. is the North American leader in with regard to
distribution, energy transportation and associated services. It operates the longest system of
liquid pipelines and crude oil in United States and Canada. Being the energy distributor, it
operates and owns the largest entity for gas distribution in Canada and plays vital role in
generation as well as distribution of electricity. It looks into the future with the motive of
moving to additional utilities of water and utilities (Enbridge.com, 2019).
Comparative analysis
Canada is the most proven natural gas and oil reserves country in the globe. Suncor
Energy is in midst of revamping various business operations for boosting efficiency and
productivity. Further, the entity announced that towards the end of previous year the
production had increased by 10%. Despite the headwinds from the Alberta government said
growth of Suncor is taking place owing to its new production facilities. On the other hand,

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Enbridge is not showing any sign that its growth will be slow down. It has various ongoing
projects including one multi-billion dollar project that is expected to be the largest one for the
entity till date and 3 replacement programs (Ca.finance.yahoo.com, 2019).
Looking into the financial performance of the entity it can be stated that in liquidity
context both the entities are not able to meet its shirt term obligation with the current assets as
their current ratio is less than 1 (Suncor.com, 2019). If the efficiency ratio is considered, it

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can be identified that Suncor Energy is better as compared to Enbridge as it takes 30.72 days
to collect its dues whereas Enbridge takes 77.34 days on an average to collect the dues
(Rivard et al., 2014) Profitability position of Suncor is better as against Enbridge as the return
on assets for Suncor is higher as compared to Enbridge. However, net profit margin for
Enbridge is better as it is able to generate profit of 10.41% whereas Suncor generated 8.54%
of profit only. Looking into the solvency position it is identified that debt equity ratio of
Enbridge is 1.27 whereas the same for Suncor is 1.04 (Enbridge.com, 2019). Hence, Suncor
is more solvent as compared to Enbridge.
Conclusion
It can be concluded from above discussion that though both the entities have good
growth prospect considering the financial performance in previous year it can be identified
that Suncor Energy is in better position as compared to Enbridge Inc as its liquidity position,
efficiency and solvency position is better.

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Reference
Ca.finance.yahoo.com (2019). Yahoo is now a part of Oath. Retrieved 25 June 2019, from
https://ca.finance.yahoo.com/news/tfsa-investors-buy-enbridge-tsx-171432280.html
Rivard, C., Lavoie, D., Lefebvre, R., Séjourné, S., Lamontagne, C., & Duchesne, M. (2014).
An overview of Canadian shale gas production and environmental
concerns. International Journal of Coal Geology, 126, 64-76.
Suncor.com (2019). Suncor. Retrieved 25 June 2019, from https://www.suncor.com/
Enbridge.com (2019). Home. Retrieved 25 June 2019, from https://www.enbridge.com/