(By Salman - iStockAnalyst Writer)Suncor Energy Inc.(NYSE: SU), Canada's largest oil company, is scheduled to report its third quarter earnings on Friday, November 6 at 12:30 a.m. MT / 2:30 a.m. ET. Analysts on average expect the company to earn 30 cents per share on revenue of $8.76 billion. In the year ago period, the company reported earnings of 87 cents per share.

Suncor Energy Inc., together with its subsidiaries, operates as an integrated energy company in Canada. It operates through four segments: Oil Sands, Natural Gas, Energy Marketing and Refining, and Refining and Marketing. Of Suncor's 2008 net earnings, 95% came from operation related to the production of oil from oil sands. According to the energy consultancy agency Cambridge Energy Research Associates (CERA), daily production from Canada's oil sands has the potential of reaching 6.3 million barrels of oil by 2035. Additionally, imports from Canadian oil sands have the potential of accounting for 37% of U.S. oil imports by 2035.

Rising crude oil prices, recovering global economy and improving demand outlook may work in favor of Suncor Energy. Oil sands require a larger investment and hence a higher price. Oil prices have climbed over 77 percent since the beginning of the year. Though performance of energy companies are expected to improve sequentially, a year-over year comparison would not be much meaningful as oil prices hit record highs in July of last year, peaking at $147.

The company announced the completion of its merger with oil and gas company Petro-Canada on August 1. The combined entity so formed is expected to contribute annual reductions of $1 billion in capital spending, in addition to expected annual savings of $300 million in operational expenditures. The company will operate corporately and trade under the Suncor Energy name and at the same time, will maintain the Petro-Canada brand for its refined products and national retail network, and as a partner of the 2010 Olympic and Paralympic Winter Games.

For the second quarter ended June 30, 2009, Suncor posted a net loss of C$51 million or C$0.06 per share, compared to net earnings of C$829 million or C$0.87 per share in the year-ago quarter. Excluding unrealized foreign exchange gain on Suncor's U.S. dollar denominated long-term debt, mark-to-market accounting losses on commodity derivatives, and costs related to start-up or deferral of growth projects, quarterly earnings amounted to C$185 million or C$0.20 per share, sharply below C$920 million or C$0.99 per share reported in the second quarter of 2008. Quarterly revenue plunged to C$5.06 billion from C$7.96 billion in the comparable quarter last year.

For the second quarter of 2009, cash flow used in operations totaled C$0.34 billion, way below the C$1.41 billion recorded in the prior-year period.

The Calgary, Alberta-based company noted that the decrease in earnings and cash flow was mainly due to lower price realizations, which it attributed to the considerably weaker benchmark commodity prices in the second quarter when compared to the same period in 2008 together with higher operating expenses at oil sands as a result of increased production and sales.

Suncor is targeting average oil sands production of 300,000 bpd (+5%/-10%) in 2009, with a growth range of +5% to -10%. Natural gas production is estimated to be 210 mmcf equivalents per day, with a range of +5% to -5%. Year-to-date oil sands production at the end of October averaged approximately 296,000 bpd. The company announced recently that oil sands production during October averaged about 307K barrels per day or bpd. Early in October, Suncor Energy Inc. reported that the company's oil sands production during September averaged about 302,000 bpd. Oil sands production during August averaged about 312,000 barrels per day or bpd.

The energy company in September said that about 1,000 employees would leave the company by mid- October through layoffs, retirements and discontinuation of contract positions following its merger with Petro-Canada.

Suncor declared a quarterly dividend of $0.10 per common share during the the third quarter.

In terms of stock performance, Suncor shares have gained 10% since the beginning of the year. Shares of the company rose 30 cents or 0.91% to $33.26 in midday trade on Thursday.

Disclosure: Author doesn't own any of the stocks mentioned here.