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On September 20, EU Economics Commissioner Valdis Dombrovskis stated at an informal meeting of EU finance ministers in Denmark that the European Commission hopes to finance Ukraine in 2026 through a so-called "compensatory loan" using Russian assets. Dombrovskis said during a press conference: "Thats right. I outlined the concept of such a compensatory loan at the meeting. I want to say that there is a willingness to work constructively together. Indeed, member states consider this a viable approach. Now, we will obviously continue to work hard under all conditions. Because we need to complete all these preparatory work relatively quickly. Ukraine will need this funding starting in 2026."On September 20th, Optus Communications, Australias second-largest telecommunications operator, experienced a 13-hour network outage, disrupting emergency call services and resulting in four deaths. Australian Communications Minister Anika Wells stated on the 20th, "It is unacceptable that Optus failed Australians at their most critical moment." She emphasized that telecommunications companies are legally required to ensure unimpeded emergency call service. The communications regulator has launched an investigation.On September 20th, ECB board member Stournaras said the bank may have completed its current cycle of rate cuts, and any further easing would require a material change in the outlook for inflation and economic growth. He noted that while inflation is expected to remain slightly below 2% over the next few years and risks are tilted to the downside, this alone does not justify further rate cuts. "Overall, in an environment of uncertainty, we are in a good equilibrium—not a perfect equilibrium, but a good one," said Stournaras, considered a dovish policymaker. "There is no reason to adjust interest rates at this point." "We are data-dependent—if we see a change in the situation at our monetary policy meetings, we will adjust accordingly," Stournaras said. "But it would require a material change in the outlook for us to do so." These comments echo recent hawkish stances from some officials. Estonian Central Bank Governor Müller said on Friday that ECB policy was already somewhat accommodative and there was no reason to cut rates further.On September 20th, at NIO Day, NIO Chairman William Li Bin stated that the company is currently working hard to increase production capacity for the all-new ES8. If production capacity still fails to meet demand, NIO will cover the difference from next years NEV subsidy reduction.Ukrainian Security Service official: Ukrainian drones attacked an oil pumping station involved in exporting Russian oil through the port of Novorossiysk.

Suncor CEO Little Is Under Pressure After Activist Elliott Targets Him

Charlie Brooks

May 09, 2022 10:12

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Mark Little, CEO of Canadian oil and gas giant Suncor Energy (NYSE:SU), issued an apology three months ago.


In January, two trucks collided at an oil sands mine in northern Alberta, resulting in the death of one individual. Since 2014, Suncor has had 12 workplace fatalities, by far the poorest safety record among its Canadian competitors.


Little stated during a February earnings call, "I own this." Those words are now returning to haunt him.


The accident in January was the most recent in a series of operational problems at Suncor sites, and it compounded investor discontent with a significant dividend cut in 2020.


Elliott Management, a U.S. investment firm, recognized an opportunity when Suncor shares trailed behind its competitors and acquired a 3,4 percent position. The hedge fund stated last month that it would want to see a couple of new board members and management and strategic reviews.


Elliott, which is notorious for pressuring businesses to improve operations, is expected to meet with Suncor discreetly next week, according to sources.


Elliott's action raises questions about Little's effectiveness as CEO, a position he assumed in 2019 after serving as COO since December 2017.


"My sense is that Bay Street is not going to give (Suncor) the benefit of the doubt after a few years of blunders," said Laura Lau, chief investment officer at Suncor shareholder Brompton Group.


"Will they (shareholders) provide Mark Little with sufficient time? I'm not sure. There are increasing doubts as to whether he is the ideal candidate moving forward "He remarked,


Elliott did not mention Little by name in its letter to Suncor, but stated that the board must be responsible for assembling a management team capable of delivering superior operating and safety performance.


Suncor, which announces quarterly earnings on Monday, declined to comment on a request for comment.


Suncor is the most lucrative per barrel refining and marketing firm in North America and one of Canada's largest fuel wholesalers. However, it has frequently missed output forecasts and failed to satisfy a pledge made in 2018 to produce up to C$2 billion ($1.6 billion) of free cash flow improvement by the end of 2023, delaying the aim until 2025.


Little, 57, ascended the ranks after joining Suncor in 2008; he had previously worked for Imperial Oil (NYSE:IMO) and its primary owner Exxon Mo(NYSE:XOM). Suncor's recent operational troubles, according to some Canadian energy industry insiders, are the result of a push to automate operations as much as possible, which makes the company less adaptable when things go wrong.


One former Suncor employee who worked with Little remarked, "He (Little) is liked, he's clever, and he's brilliant, but he's all about procedures."


Because he still advises in the industry, the source declined to be named.


Elliott, a firm that invests $51.5 billion in assets, has campaigned for the removal of top executives at Twitter (NYSE:TWTR), Marathon Petroleum (NYSE:MPC), and eBay (NASDAQ:EBAY). It launched seventeen campaigns in 2021, won eleven board seats in the past year, and has a reputation for directing strategy from within the boardroom.


Elliott denied comment for this article. Suncor's stock price underperformance may be traced back to the early days of the epidemic, when, in response to dropping crude oil prices, the company cut its dividend while rival Canadian Natural (NYSE:CNQ) Resources Ltd maintained its dividend distribution.


In 2020, Canadian Natural surpassed Suncor as the country's most valued energy firm due to its lagging share price.


Then followed a series of accidents at Suncor's oil sands and refinery plants, including the July 2018 revelation that a major slope at its newly-opened Fort Hills mine was unstable and required repair before production could be ramped up.


Despite the concerns, Little received 127 percent of his yearly bonus opportunity for 2021, compared to 74 percent for 2020, according to corporate documents. Elliott stated in a public presentation that CEO salary levels over the past many years indicate that the board is "not adequately holding management accountable for present performance."


Matt Murphy, an analyst with Tudor Pickering Holt in Calgary, stated, "If you look at investor commentary over the past two years, there has been some dissatisfaction on the operations side, which boils down to management dissatisfaction."

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