Suncor said it will keep its network of Petro-Canada fuel stations, a potential rebuff to the activist shareholder who has been pushing for a shakeup at the oilsands stalwart.
The board of directors of Suncor decided to improve Petro-Canada after a comprehensive review, promising changes that will lead to retail becoming a bigger contributor to the company.
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The Petro-Canada board decided after careful consideration that retaining and improving the company's retail business would generate the highest long-term value for shareholders. The strategic asset of Petro-Canada is its strong national network and best in market consumer brand and loyalty program.
Suncor said it will continue to expand businesses that don't involve fuel to bolster retail sales.
Suncor was put under pressure to sell off the chain of fueling stations after the company's review weighed multiple options. The board committee looked at the business and looked at the future of retail in Canada. Selling Petro-Canada had pros and cons.
The board of directors at the oilsands company needs to be changed, according to a public letter issued by the hedge fund. Suncor has a poor safety record, with an estimated 13 workplace deaths in the last two years.
Suncor's chief executive resigned after a worker died. In its third-quarter earnings call, the company said it would reduce the number of contractors and upgrade its technology at its oilsands operations.
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