EXHIBIT 99.3

Unaudited Interim Consolidated Financial Statements for the Second Quarter Ended
June 30, 2011


		Three months ended June 30				Six months ended June 30
($ millions)		2011		2010		2011		2010

Revenues and Other Income
	Operating revenues, net of royalties (note 6)	9 510		8 174		18 766		15 304
	Other income	77		287		209		288

		9 587		8 461		18 975		15 592

Expenses
	Purchases of crude oil and products	5 084		3 938		8 891		7 367
	Operating, selling and general (note 8)	1 934		1 879		4 225		3 730
	Transportation	181		177		343		335
	Depreciation, depletion, amortization and impairment (note 7)	1 310		1 030		2 095		1 878
	Exploration	31		50		89		98
	Loss (gain) on disposal of assets	(60	)	(149	)	191		(417	)
	Project start-up costs	46		15		83		27
	Financing expenses (income) (note 9)	20		536		(29	)	405

		8 546		7 476		15 888		13 423

Earnings Before Income Taxes		1 041		985		3 087		2 169

Provisions for Income Taxes (note 13)
	Current	166		251		582		498
	Deferred	313		194		915		352

		479		445		1 497		850

Net Earnings		562		540		1 590		1 319

Other Comprehensive Income (Loss)
	Foreign currency translation adjustment	4		—		41		(375	)
	Foreign currency translation adjustment relating to assets held for sale	—		(8	)	—		(65	)
	Foreign currency translation reclassified to net earnings	—		—		14		1
	Actuarial loss on employee retirement benefit plans, net of income taxes of $13 (2010 – $45) and $9 (2010 – $74) for the three and six months ended June 30, respectively	(44	)	(133	)	(26	)	(217	)

Other Comprehensive Income (Loss)		(40	)	(141	)	29		(656	)

Total Comprehensive Income		522		399		1 619		663

Net Earnings per Common Share (dollars) (note 10)
	Basic	0.36		0.35		1.01		0.84
	Diluted	0.31		0.34		0.99		0.80

Cash dividends		0.11		0.10		0.21		0.20


($ millions)			June 30 2011	December 31 2010

Assets
	Current assets
		Cash and cash equivalents	3 097	1 077
		Accounts receivable	4 519	5 253
		Inventories	3 724	3 141
		Income taxes receivable	710	734
		Assets held for sale (note 11)	57	762

	Total current assets		12 107	10 967
	Property, plant and equipment, net		49 417	49 958
	Exploration and evaluation		4 333	3 961
	Other assets		298	230
	Goodwill and other intangible assets (note 12)		3 141	3 422
	Deferred income taxes		47	69

	Total assets		69 343	68 607

Liabilities and Shareholders' Equity
	Current liabilities
		Short-term debt	750	1 984
		Current portion of long-term debt	515	518
		Accounts payable and accrued liabilities	6 753	6 524
		Current portion of provisions	405	527
		Income taxes payable	1 084	929
		Liabilities associated with assets held for sale (note 11)	10	586

	Total current liabilities		9 517	11 068
	Long-term debt		9 570	9 829
	Other long-term liabilities		2 015	2 103
	Provisions		2 473	2 504
	Deferred income taxes		8 979	7 911
	Shareholders' equity		36 789	35 192

	Total liabilities and shareholders' equity		69 343	68 607

Suncor Energy Inc.
052 2011 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com


		Three months ended June 30				Six months ended June 30
($ millions)		2011		2010		2011		2010

Operating Activities
Net earnings		562		540		1 590		1 319
Adjustments for:
	Depreciation, depletion, amortization and impairment	1 310		1 030		2 095		1 878
	Deferred income taxes	313		194		915		352
	Accretion of liabilities	45		48		83		96
	Unrealized foreign exchange (gain) loss on U.S. dollar denominated long-term debt	(62	)	376		(248	)	116
	Change in fair value of derivative contracts	(21	)	(173	)	(76	)	(253	)
	Loss (gain) on disposal of assets	(60	)	(149	)	191		(417	)
	Share-based compensation	(101	)	(19	)	72		(94	)
	Exploration	17		20		19		36
	Other	(21	)	(97	)	(266	)	(139	)
Decrease (increase) in non-cash working capital		268		62		393		(796	)

Cash flow provided by operating activities		2 250		1 832		4 768		2 098

Investing Activities
Capital and exploration expenditures		(1 941	)	(1 518	)	(3 517	)	(2 654	)
Acquisitions		—		—		(842	)	—
Proceeds from disposal of assets		268		311		2 958		1 253
Other investments		(3	)	(3	)	2		(3	)
Decrease (increase) in non-cash working capital		(772	)	(137	)	44		(122	)

Cash flow used in investing activities		(2 448	)	(1 347	)	(1 355	)	(1 526	)

Financing Activities
Net change in short-term debt		(1	)	(13	)	(1 233	)	(8	)
Net change in long-term debt		(6	)	(492	)	(10	)	(346	)
Issuance of common shares under share option plans		17		20		185		35
Dividends paid on common shares		(171	)	(154	)	(324	)	(307	)

Cash flow used in financing activities		(161	)	(639	)	(1 382	)	(626	)

Increase (Decrease) in Cash and Cash Equivalents		(359	)	(154	)	2 031		(54	)
Effect of foreign exchange on cash and cash equivalents		(9	)	7		(11	)	4
Cash and cash equivalents at beginning of period		3 465		602		1 077		505

Cash and Cash Equivalents at End of Period		3 097		455		3 097		455

Supplementary Cash Flow Information
Interest paid		273		261		374		353
Income taxes paid		2		40		310		271


($ millions)	Share Capital	Contributed Surplus		Foreign Currency Translation		Cash Flow Hedge	Retained Earnings		Total		Number of Common Shares (thousands)

At January 1, 2010	20 053	536		—		15	11 881		32 485		1 559 778

Net earnings	—	—		—		—	1 319		1 319		—
Foreign currency translation adjustment	—	—		(439	)	—	—		(439	)	—
Actuarial loss on employee retirement benefit plans	—	—		—		—	(217	)	(217	)	—

Total comprehensive income (loss)	—	—		(439	)	—	1 102		663		—
Dividends paid on common shares	—	—		—		—	(307	)	(307	)	—
Issued under share option plans	44	(14	)	—		—	—		30		2 238
Issued under dividend reinvestment plan	5	—		—		—	(5	)	—		152
Share-based compensation expense	—	25		—		—	—		25		—

At June 30, 2010	20 102	547		(439	)	15	12 671		32 896		1 562 168



At December 31, 2010	20 188	507		(451	)	14	14 934		35 192		1 565 489

Net earnings	—	—		—		—	1 590		1 590		—
Foreign currency translation adjustment	—	—		55		—	—		55		—
Actuarial loss on employee retirement benefit plans	—	—		—		—	(26	)	(26	)	—

Total comprehensive income	—	—		55		—	1 564		1 619		—
Dividends paid on common shares	—	—		—		—	(324	)	(324	)	—
Issued under share option plans	284	(44	)	—		—	—		240		8 105
Issued under dividend reinvestment plan	6	—		—		—	(6	)	—		171
Share-based compensation expense	—	61		—		—	—		61		—
Income tax benefit of stock option deduction in the U.S.	—	1		—		—	—		1		—

At June 30, 2011	20 478	525		(396	)	14	16 168		36 789		1 573 765

Suncor Energy Inc.
054 2011 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com

Suncor Energy Inc. (Suncor or the company) is an integrated energy company headquartered in Canada. Suncor's operations include oil sands development and upgrading, onshore and offshore oil and gas production, petroleum refining, and product marketing primarily under the Petro-Canada brand. The consolidated financial statements of the company comprise the company and its subsidiaries and the company's interests in associates and jointly controlled entities.

The address of the company's registered office is 150 - 6th Avenue S.W., Calgary, Alberta, Canada, T2P 3E3.

These condensed consolidated interim financial statements have been prepared in accordance with Canadian generally accepted accounting principles (GAAP), specifically International Accounting Standard 34 Interim Financial Reporting within Part 1 of the Canadian Institute of Chartered Accountants (CICA) Handbook. They are condensed as they do not include all of the information required for full annual financial statements, and they should be read in conjunction with the consolidated financial statements for the year ended December 31, 2010.

Effective January 1, 2011, the company's consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), and IFRS 1 First-Time Adoption of International Financial Reporting Standards (IFRS 1) has been applied. In previous years, the company prepared its consolidated financial statements in accordance with Canadian generally accepted accounting principles in effect prior to January 1, 2011 (Previous GAAP). Comparative information has been restated from Previous GAAP to IFRS. The impact of the transition to IFRS on the company's previously reported financial statements for the three and six months ended June 30, 2010 is presented in note 4. The impact on the company's previously reported financial statements for the year ended December 31, 2010, and the opening balance sheet at January 1, 2010, is disclosed in the company's consolidated interim financial statements for the three months ended March 31, 2011.

The policies applied in these condensed interim consolidated financial statements are based on IFRS issued and outstanding as at July 26, 2011, the date the Board of Directors approved the statements. Any subsequent changes to IFRS that are given effect in the company's annual consolidated financial statements for the year ended December 31, 2011 could result in restatement of these interim consolidated financial statements, including the adjustments recognized on transition to IFRS.

The consolidated financial statements are prepared on a historical cost basis except as detailed in the accounting policies disclosed in the company's consolidated interim financial statements for the three months ended March 31, 2011. Those accounting policies have been applied consistently to all periods presented in these financial statements.

These consolidated financial statements are presented in Canadian dollars (Cdn$), which is the company's functional currency.

The timely preparation of financial statements requires that management make estimates and assumptions and use judgment regarding assets, liabilities, revenues and expenses. Such estimates primarily relate to unsettled transactions and events as at the date of the financial statements. Accordingly, actual results may differ from estimated amounts as future confirming events occur.

Significant estimates and judgment used in the preparation of the financial statements are described in the company's consolidated interim financial statements for the three months ended March 31, 2011.

In November 2009, as part of the International Accounting Standards Board's (IASB) project to replace International Accounting Standard (IAS) 39 Financial Instruments: Recognition and Measurement, the IASB issued the first phase of IFRS 9 Financial Instruments. It contained requirements for the classification and measurement of financial assets, and was updated in October 2010 to incorporate financial liabilities. The standard is applicable for annual periods starting on or after January 1, 2013. The full impact of this standard will not be known until the phases addressing hedging and impairments have been completed.

In May 2011, the IASB issued IFRS 13 Fair Value Measurement, which establishes a single source of guidance for all fair value measurements; clarifies the definition of fair value; and enhances the disclosures on fair value measurement. Prospective application of this standard is effective for fiscal years beginning on or after January 1, 2013, with early application permitted. The company does not anticipate significant changes to its fair value measurements and related disclosures as a result of this standard.

In May 2011, the IASB issued IFRS 10 Consolidated Financial Statement, IFRS 11 Joint Arrangements, IFRS 12 Disclosures of Interests in Other Entities, and amendments to IAS 27 Separate Financial Statements and IAS 28 Investments in Associates and Joint Ventures.

IFRS 10 creates a single consolidation model by revising the definition of control in order to apply the same control criteria to all types of entities, including joint arrangements, associates and special purpose vehicles. IFRS 11 establishes a principle-based approach to the accounting for joint arrangements by focusing on the rights and obligations of the arrangement and limits the application of proportionate consolidation accounting to arrangements that meet the definition of a joint operation. IFRS 12 is a comprehensive disclosure standard for all forms of interests in other entities, including joint arrangements, associates and special purpose vehicles.

Retrospective application of these standards with relief for certain transactions is effective for fiscal years beginning on or after January 1, 2013, with earlier application permitted if all five standards are collectively adopted. The company is currently assessing the impact of these standards.

In June 2011, the IASB issued amendments to IAS 19 Employee Benefits, which revises the recognition, presentation and disclosure requirements for defined benefit plans. The revised standard requires immediate recognition of actuarial gains and losses in other comprehensive income, eliminating the previous options that were available, and enhances the disclosure requirements for defined benefit plans. Retrospective application of this standard is effective for fiscal years beginning on or after January 1, 2013, with early application permitted. The company does not anticipate significant impacts as a result of these amendments.

Effective January 1, 2011, the company began reporting under IFRS, and the accounting policies disclosed in the company's consolidated interim financial statements for the three months ended March 31, 2011 have been applied in preparing the financial statements for the three and six month periods ended June 30, 2011 and 2010, for the year ended December 31, 2010, and in the preparation of the company's opening balance sheet at January 1, 2010 (Transition Date).

In previous years, the company prepared its consolidated financial statements in accordance with Previous GAAP. Reconciliations from Previous GAAP to IFRS for comparative periods are provided on the following pages.

Suncor Energy Inc.
056 2011 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com


($ millions)			Previous GAAP ⁽¹⁾	Presentation Changes for Discontinued Operations ⁽²⁾		Other Presentation Changes ⁽³⁾		IFRS Adjustments ⁽⁴⁾		IFRS

Assets
	Current assets
		Cash and cash equivalents	455	—		—		—		455
		Accounts receivable	4 579	—		—		—		4 579
		Inventories	2 808	—		—		—		2 808
		Income taxes receivable	650	—		—		—		650
		Deferred income taxes	359	—		(359	)	—		—
		Assets held for sale ⁽⁹⁾	249	2 243		—		(49	)	2 443

	Total current assets		9 100	2 243		(359	)	(49	)	10 935
	Property, plant and equipment, net ⁽⁵⁾⁽⁷⁾⁽⁸⁾⁽⁹⁾⁽¹³⁾		54 229	—		(3 846	)	(1 461	)	48 922
	Exploration and evaluation		—	—		3 846		—		3 846
	Other assets		477	—		(227	)	—		250
	Goodwill		3 201	—		(3 201	)	—		—
	Goodwill and other intangible assets		—	—		3 428		—		3 428
	Deferred income taxes		12	—		16		—		28
	Assets of discontinued operations		2 243	(2 243	)	—		—		—

	Total assets		69 262	—		(343	)	(1 510	)	67 409

Liabilities and Shareholders' Equity
	Current liabilities
		Short-term debt	2	—		2 307		—		2 309
		Current portion of long-term debt	21	—		—		—		21
		Accounts payable and accrued liabilities ⁽¹⁰⁾⁽¹¹⁾	5 989	—		(616	)	110		5 483
		Current portion of provisions	—	—		616		—		616
		Income taxes payable	1 484	—		—		—		1 484
		Deferred income taxes	19	—		(19	)	—		—
		Liabilities associated with assets held for sale ⁽⁵⁾⁽⁶⁾⁽¹³⁾	162	758		—		24		944

		Total current liabilities	7 677	758		2 288		134		10 857
	Long-term debt ⁽⁷⁾		13 609	—		(2 307	)	142		11 444
	Accrued liabilities and other		3 989	—		(3 989	)	—		—
	Other long-term liabilities ⁽¹⁰⁾⁽¹¹⁾		—	—		1 777		307		2 084
	Provisions ⁽⁵⁾⁽⁶⁾		—	—		2 212		248		2 460
	Deferred income taxes ⁽¹³⁾		8 606	—		(324	)	(614	)	7 668
	Liabilities of discontinued operations		758	(758	)	—		—		—
	Shareholders' equity ⁽⁵⁾⁽⁶⁾⁽⁷⁾⁽⁸⁾⁽⁹⁾⁽¹⁰⁾⁽¹¹⁾⁽¹²⁾⁽¹³⁾		34 623	—		—		(1 727	)	32 896

	Total liabilities and shareholders' equity		69 262	—		(343	)	(1 510	)	67 409

Reconciliation of Comprehensive Income for the Three Months Ended June 30, 2010


($ millions)		Previous GAAP ⁽¹⁾		Presentation Changes for Discontinued Operations ⁽²⁾		Other Presentation Changes ⁽³⁾		IFRS Adjustments ⁽⁴⁾		IFRS

Revenues and Other Income
	Operating revenues	8 610		226		(662	)	—		8 174
	Less: Royalties	(536	)	(3	)	539		—		—

	Operating revenues, net of royalties	8 074		223		(123	)	—		8 174
	Other income	175		(3	)	115		—		287

		8 249		220		(8	)	—		8 461

Expenses
	Purchases of crude oil and products	3 946		—		(8	)	—		3 938
	Operating, selling and general ⁽⁷⁾⁽¹⁰⁾⁽¹¹⁾	1 853		50		—		(24	)	1 879
	Transportation	163		14		—		—		177
	Depreciation, depletion, amortization and impairment ⁽⁵⁾⁽⁷⁾⁽⁸⁾⁽⁹⁾	1 050		34		—		(54	)	1 030
	Accretion of asset retirement obligations	45		7		(52	)	—		—
	Exploration	47		3		—		—		50
	Gain on disposal of assets ⁽⁶⁾	(4	)	(144	)	—		(1	)	(149	)
	Project start-up costs	15		—		—		—		15
	Financing expenses (income) ⁽⁵⁾⁽⁷⁾	478		7		52		(1	)	536

		7 593		(29	)	(8	)	(80	)	7 476

Earnings Before Income Taxes		656		249		—		80		985

Provisions for Income Taxes
	Current	262		(11	)	—		—		251
	Deferred ⁽¹³⁾	76		98		—		20		194

		338		87		—		20		445

Net Earnings from Continuing Operations		318		162		—		60		540
Net Earnings from Discontinued Operations		162		(162	)	—		—		—

Net Earnings		480		—		—		60		540

Other Comprehensive Loss
	Foreign currency translation adjustment ⁽¹⁰⁾	(7	)	—		8		(1	)	—
	Foreign currency translation adjustment relating to assets held for sale ⁽⁶⁾	—		—		(8	)	—		(8	)
	Actuarial loss on employee retirement benefit plans ⁽¹⁰⁾⁽¹³⁾	—		—		—		(133	)	(133	)

Other Comprehensive Loss		(7	)	—		—		(134	)	(141	)

Total Comprehensive Income		473		—		—		(74	)	399

Suncor Energy Inc.
058 2011 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com

Reconciliation of Comprehensive Income for the Six Months Ended June 30, 2010


($ millions)		Previous GAAP ⁽¹⁾		Presentation Changes for Discontinued Operations ⁽²⁾		Other Presentation Changes ⁽³⁾		IFRS Adjustments ⁽⁴⁾		IFRS

Revenues and Other Income
	Operating revenues	15 849		596		(1 141	)	—		15 304
	Less: Royalties	(978	)	(33	)	1 011		—		—

	Operating revenues, net of royalties	14 871		563		(130	)	—		15 304
	Other income	165		—		123		—		288

		15 036		563		(7	)	—		15 592

Expenses
	Purchases of crude oil and products	7 374		—		(7	)	—		7 367
	Operating, selling and general ⁽⁷⁾⁽¹⁰⁾⁽¹¹⁾	3 638		122		—		(30	)	3 730
	Transportation	306		29		—		—		335
	Depreciation, depletion, amortization and impairment ⁽⁵⁾⁽⁷⁾⁽⁸⁾⁽⁹⁾	1 869		127		—		(118	)	1 878
	Accretion of asset retirement obligations	88		17		(105	)	—		—
	Exploration	93		5		—		—		98
	Gain on disposal of assets ⁽⁶⁾	(28	)	(375	)	—		(14	)	(417	)
	Project start-up costs	27		—		—		—		27
	Financing expenses (income) ⁽⁵⁾⁽⁷⁾	288		15		105		(3	)	405

		13 655		(60	)	(7	)	(165	)	13 423

Earnings Before Income Taxes		1 381		623		—		165		2 169

Provisions for Income Taxes
	Current	430		68		—		—		498
	Deferred ⁽¹³⁾	169		141		—		42		352

		599		209		—		42		850

Net Earnings from Continuing Operations		782		414		—		123		1 319
Net Earnings from Discontinued Operations		414		(414	)	—		—		—

Net Earnings		1 196		—		—		123		1 319

Other Comprehensive Loss
	Foreign currency translation adjustment ⁽⁵⁾	(442	)	—		66		1		(375	)
	Foreign currency translation adjustment relating to assets held for sale ⁽⁶⁾	—		—		(66	)	1		(65	)
	Foreign currency translation reclassified to net earnings ⁽⁶⁾	6		—		—		(5	)	1
	Actuarial loss on employee retirement benefit plans ⁽¹⁰⁾⁽¹³⁾	—		—		—		(217	)	(217	)

Other Comprehensive Loss		(436	)	—		—		(220	)	(656	)

Total Comprehensive Income		760		—		—		(97	)	663

Under Previous GAAP, increases in the estimated cash flows were discounted using the current credit-adjusted risk-free rate, while downward revisions in the estimated cash flows were discounted using the credit-adjusted risk-free rate that existed when the original liability was recognized. Under IFRS, estimated cash flows are discounted using the credit-adjusted risk-free rate that exists at the balance sheet date.

In accordance with IFRS 1, the company elected to remeasure its decommissioning and restoration costs at the Transition Date and has estimated the related asset by discounting the liability to the date in which the liability arose and recalculated the accumulated depreciation, depletion and amortization under IFRS. The impacts on the financial statements were as follows:


($ millions)	For the three months ended June 30, 2010		As at and for the six months ended June 30, 2010

Property, plant and equipment, net	—		(668	)
Liabilities associated with assets held for sale	—		27
Provisions	—		260
Foreign currency translation	—		1
Retained earnings	—		(956	)
Depreciation, depletion, amortization and impairment	(10	)	(20	)
Financing expenses (income)	(5	)	(10	)
Foreign currency translation adjustment	—		1

Suncor Energy Inc.
060 2011 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com

The net carrying values of disposed properties have been adjusted to reflect their respective IFRS adjustments, resulting in revised gains or losses upon disposal of the assets. The impacts on the financial statements were as follows:


($ millions)	For the three months ended June 30, 2010		As at and for the six months ended June 30, 2010

Liabilities associated with assets held for sale	—		2
Provisions	—		(12	)
Foreign currency translation	—		(4	)
Retained earnings	—		14
Gain on disposal of assets	(1	)	(14	)
Foreign currency translation adjustment relating to assets held for sale	—		1
Foreign currency translation reclassified to net earnings	—		(5	)

In accordance with IFRS 1, the company elected to evaluate whether certain arrangements contain a lease based on the facts and circumstances existing at Transition Date. Pursuant to such evaluation, the company has accounted for certain arrangements as finance leases under IFRS. The impacts on the financial statements were as follows:

Under Previous GAAP, carrying amounts of property, plant and equipment assets were derecognized when no future economic benefits were expected from their use. Under IFRS, this derecognition of assets occurs at the component level. The impacts on the financial statements were as follows:

The company has applied the IFRS 1 election to record certain assets of property, plant and equipment at fair value on the Transition Date. The exemption has been applied to refinery assets located in Eastern Canada and certain natural gas assets in Western Canada. When estimating fair value, market information for similar assets was used, and where market information was not available, management relied on internally generated cash flow models using discount rates specific to the asset and long-term forecasts of commodity prices and refining margins. The aggregate of these fair values was $1.370 billion, resulting in a reduction of the carrying amount of property, plant and equipment of $906 million as at January 1, 2010. The impacts on the financial statements were as follows:

Under Previous GAAP, unamortized actuarial gains and losses in respect of the company's defined benefit pension plans were recognized into earnings over the expected average remaining service life of employees. In accordance with IFRS 1, the company has elected to recognize all cumulative actuarial gains and losses directly in Retained Earnings at the Transition Date. Under IFRS, actuarial gains and losses incurred in the period are recorded in Other Comprehensive Income and then transferred directly to Retained Earnings.

Under Previous GAAP, the expense recognition period for other post-retirement benefit plans began on the employee's date of hire. Under IFRS, this period now commences when the employee reaches 45 years of age, the point at which the employee first starts accruing benefits under these plans.


($ millions)	For the three months ended June 30, 2010		As at and for the six months ended June 30, 2010

Accounts payable and accrued liabilities	—		2
Other long-term liabilities	—		309
Foreign currency translation	—		—
Retained earnings	—		(311	)
Operating, selling and general	(5	)	(10	)
Foreign currency translation adjustment	(1	)	—
Actuarial loss on defined benefit pension plans	(178	)	(291	)

Under Previous GAAP, the company recorded obligations for cash-settled share-based compensation plans using the intrinsic value method. Under IFRS, obligations for these same plans are recorded as a liability using the fair value method. For equity-settled share-based compensation plans, the company accrues the cost of employee stock options over the

Suncor Energy Inc.
062 2011 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com

vesting period using the graded method of amortization rather than the straight-line method, which the company used under Previous GAAP. The impacts on the financial statements were as follows:

In accordance with IFRS 1, the company elected at the Transition Date to transfer all foreign currency translation differences in respect of foreign operations that arose prior to the Transition Date to Retained Earnings. The impacts on the financial statements were as follows:

The company recognized deferred income taxes primarily in respect of the above changes. The impacts on the financial statements were as follows:

Under Previous GAAP, the dilutive impact of options with tandem stock appreciation rights or cash payment alternatives was not included in the calculation of diluted earnings per share. Under IFRS, these awards are considered potentially dilutive and are included in the calculation of the company's diluted net earnings per share calculation if they have a dilutive impact in the period.

The impact on the net earnings amount used in the calculation of diluted earnings per share for the three and six months ended June 30, 2010 can be seen in note 10.

During the second quarter of 2011, the company completed a review of its energy supply and trading activities. It was determined that the nature and purpose of transactions previously presented on a gross basis in Energy Supply and Trading Income and Expenses in the Consolidated Statements of Comprehensive Income have evolved such that they are more appropriately reflected through net presentation. Realized and unrealized gains and losses, and the underlying settlement of these contracts, will now be recognized and recorded on a net basis in Other Income.

Prior period comparative figures have been reclassified for comparability with the current period presentation. The impact is as follows:

The company's operating segments are determined based on differences in the nature of their operations, products and services.

In the first quarter of 2011, the company combined its International and Offshore and Natural Gas segments into one new segment, Exploration and Production. All prior periods have been reclassified to conform to these segment definitions.

Intersegment sales of crude oil and natural gas are accounted for at market values and included, for segmented reporting, in revenues of the segment making the transfer and expenses of the segment receiving the transfer. Intersegment amounts are eliminated on consolidation.

Suncor Energy Inc.
064 2011 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com


	Three months ended June 30
	Oil Sands				Exploration and Production				Refining and Marketing				Corporate, Energy Trading and Eliminations				Total
($ millions)	2011		2010		2011		2010		2011		2010		2011		2010		2011		2010

Revenues and Other Income
Gross revenues	2 121		2 084		1 366		1 566		6 464		5 122		17		(59	)	9 968		8 713
Intersegment revenues	851		541		157		203		98		65		(1 106	)	(809	)	—		—
Less: Royalties	(161	)	(182	)	(297	)	(357	)	—		—		—		—		(458	)	(539	)

Operating revenues, net of royalties	2 811		2 443		1 226		1 412		6 562		5 187		(1 089	)	(868	)	9 510		8 174
Other income	6		130		(18	)	(1	)	7		38		82		120		77		287

	2 817		2 573		1 208		1 411		6 569		5 225		(1 007	)	(748	)	9 587		8 461

Expenses
Purchases of crude oil and products	559		257		186		109		5 470		4 333		(1 131	)	(761	)	5 084		3 938
Operating, selling and general	1 253		1 039		184		242		505		543		(8	)	55		1 934		1 879
Transportation	94		77		28		62		54		48		5		(10	)	181		177
Depreciation, depletion, amortization and impairment	334		449		847		452		112		105		17		24		1 310		1 030
Exploration	8		—		23		50		—		—		—		—		31		50
Loss (gain) on disposal of assets	(6	)	2		(50	)	(146	)	(4	)	(6	)	—		1		(60	)	(149	)
Project start-up costs	46		14		—		1		—		—		—		—		46		15
Financing expenses (income)	18		26		25		(2	)	(1	)	(4	)	(22	)	516		20		536

	2 306		1 864		1 243		768		6 136		5 019		(1 139	)	(175	)	8 546		7 476

Earnings (Loss) Before Income Taxes	511		709		(35	)	643		433		206		132		(573	)	1 041		985
Income taxes	140		175		177		300		120		60		42		(90	)	479		445

Net Earnings (Loss)	371		534		(212	)	343		313		146		90		(483	)	562		540


	Six months ended June 30
	Oil Sands				Exploration and Production				Refining and Marketing				Corporate, Energy Trading and Eliminations				Total
($ millions)	2011		2010		2011		2010		2011		2010		2011		2010		2011		2010

Revenues and Other Income
Gross revenues	4 280		3 252		2 972		3 184		12 501		9 854		26		25		19 779		16 315
Intersegment revenues	1 891		1 168		366		416		140		151		(2 397	)	(1 735	)	—		—
Less: Royalties	(284	)	(252	)	(729	)	(759	)	—		—		—		—		(1 013	)	(1 011	)

Operating revenues, net of royalties	5 887		4 168		2 609		2 841		12 641		10 005		(2 371	)	(1 710	)	18 766		15 304
Other income	7		305		(15	)	1		44		30		173		(48	)	209		288

	5 894		4 473		2 594		2 842		12 685		10 035		(2 198	)	(1 758	)	18 975		15 592

Expenses
Purchases of crude oil and products	923		502		306		163		10 005		8 269		(2 343	)	(1 567	)	8 891		7 367
Operating, selling and general	2 573		2 201		420		433		1 080		1 048		152		48		4 225		3 730
Transportation	174		140		60		118		113		93		(4	)	(16	)	343		335
Depreciation, depletion, amortization and impairment	645		708		1 201		922		214		214		35		34		2 095		1 878
Exploration	48		5		41		93		—		—		—		—		89		98
Loss (gain) on disposal of assets	106		11		96		(426	)	(10	)	(3	)	(1	)	1		191		(417	)
Project start-up costs	83		24		—		3		—		—		—		—		83		27
Financing expenses (income)	36		52		50		21		5		1		(120	)	331		(29	)	405

	4 588		3 643		2 174		1 327		11 407		9 622		(2 281	)	(1 169	)	15 888		13 423

Earnings (Loss) Before Income Taxes	1 306		830		420		1 515		1 278		413		83		(589	)	3 087		2 169
Income taxes	330		207		818		644		338		120		11		(121	)	1 497		850

Net Earnings (Loss)	976		623		(398	)	871		940		293		72		(468	)	1 590		1 319

Suncor Energy Inc.
066 2011 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com

In the second quarter of 2011, the company recognized impairment losses of $514 million related to Libyan assets in its Exploration and Production business.

Production in Libya has been shut-in due to political violence. As there was no resolution of the political situation by the end of the second quarter, an impairment test on the company's Libyan assets was performed.

The recoverable amount was determined using value-in-use methodology. The company used an expected cash flow approach based on 2010 year-end reserves data updated for current price forecasts, with three scenarios representing i) resumption of normal operations after one year, ii) resumption of normal operations after two years, and iii) total loss. These scenarios were probability-weighted based on the company's best estimates, and present valued using a risk-adjusted discount rate of 17%. The two scenarios where the company resumes production incorporate rebuilding costs.

The remaining carrying value of the company's net assets in Libya at June 30, 2011 was approximately $400 million.

The impairment losses have been recorded as part of Depreciation, Depletion, Amortization and Impairment expense in the Consolidated Statements of Comprehensive Income, and charged against Property, Plant and Equipment ($259 million), Exploration and Evaluation assets ($211 million), and Inventories ($44 million) in the Consolidated Balance Sheets.

The following table summarizes the share-based compensation expense (recovery) recorded for all plans within Operating, Selling and General expense in the Consolidated Statements of Comprehensive Income.


		Three months ended June 30				Six months ended June 30
($ millions)		2011		2010		2011		2010

Interest on debt		171		170		332		357
Capitalized interest		(152	)	(62	)	(252	)	(138	)

	Interest expense	19		108		80		219
	Accretion of liabilities	45		48		83		96
	Foreign exchange loss (gain) on U.S. dollar denominated long-term debt	(62	)	376		(248	)	116
	Other foreign exchange loss (gain)	18		4		56		(26	)

Total financing expenses (income)		20		536		(29	)	405


		Three months ended June 30		Six months ended June 30
($ millions)		2011	2010	2011	2010

Net earnings		562	540	1 590	1 319

(millions of common shares)
Weighted-average number of common shares		1 574	1 562	1 572	1 561
Dilutive securities:
	Effect of share options	13	14	14	14

Weighted-average number of diluted common shares		1 587	1 576	1 586	1 575

(dollars per common share)
Basic earnings per share		0.36	0.35	1.01	0.84
Diluted earnings per share		0.31	0.34	0.99	0.80

Options with tandem stock appreciation rights or cash payment alternatives are accounted for as cash-settled plans. As these awards can be exchanged for common shares of the company, they are considered potentially dilutive and are included in the calculation of the company's diluted net earnings per share if they have a dilutive impact in the period.

Accounting for these awards as equity-settled was determined to have the most dilutive impact for the three and six months ended June 30, 2011 and 2010. As a result, a reduction to net earnings for the three months ended June 30, 2011 of $65 million (2010 – $13 million) and for the six months ended June 30, 2011 of $14 million (2010 – $60 million) was made in the diluted earnings per share calculation to account for these awards as if they were equity-settled plans.

During 2011 and 2010, the company divested certain non-core assets as part of its continuing strategic alignment.

In the first quarter of 2011, the company completed the sale of certain non-core U.K. offshore assets for net proceeds of £90 million (Cdn$140 million) after closing adjustments.

In the second quarter of 2011, the company completed the sale of certain non-core assets located in northern Alberta and northeast British Columbia for net proceeds of $92 million.

On June 14, 2011, the company entered into an agreement to sell certain non-core assets in northern Alberta. The sale is expected to close in the third quarter of 2011 and is subject to closing conditions and regulatory approvals typical of transactions of this nature.

At June 30, 2011, the company classified certain non-core natural gas properties located in Western Canada as assets held for sale.

Suncor Energy Inc.
068 2011 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com


($ millions)		June 30 2011	December 31 2010

Assets
	Current assets	2	98
	Property, plant and equipment, net	54	635
	Exploration and evaluation	1	29

	Total assets	57	762

Liabilities
	Current liabilities	1	98
	Provisions	9	311
	Deferred income taxes	—	177

	Total liabilities	10	586

During 2010, the company completed the sale of a number of non-core North American oil and gas properties for net proceeds of approximately $1.7 billion. The company also completed the disposition of certain international operations, including its shares in Petro-Canada Netherlands BV, assets in Trinidad and Tobago, and certain U.K. offshore assets, for net proceeds of approximately $900 million.

Changes in the carrying amounts of the company's goodwill and other intangible assets are as follows:


	Oil Sands			Refining and Marketing
($ millions)		Goodwill			Goodwill		Brand name	Customer lists		Total

At January 1, 2010		3 019			182		166	66		3 433
Amortization		—			—		—	(11	)	(11	)

At December 31, 2010		3 019			182		166	55		3 422
Derecognition of goodwill (note 14)		(267	)		(8	)	—	—		(275	)
Amortization		—			—		—	(6	)	(6	)

At June 30, 2011		2 752			174		166	49		3 141


			Three months ended June 30			Six months ended June 30
($ millions)			2011		2010	2011	2010

Provision for (recovery of) income taxes:
	Current:
		Canada	21		13	40	16
		Foreign	145		238	542	482
	Deferred:
		Canada	318		180	674	351
		Foreign	(5	)	14	241	1

Total provision for income taxes			479		445	1 497	850

In March 2011, the U.K. government substantively enacted a 12% increase in the supplementary charge on U.K. oil and gas profits. Accordingly, for the six months ended June 30, 2011 the company recognized an increase in deferred tax expense of $442 million related to the revaluation of deferred income tax balances.

In March 2011, Suncor closed the previously announced transaction to enter into a joint venture with Total E&P Canada Ltd. (Total). The two companies plan to develop the Fort Hills and Joslyn oil sands mining projects together with the other project partners, and restart the construction of the Voyageur upgrader.

As a result of this transaction, Suncor acquired a 36.75% interest in Joslyn for consideration of $842 million after closing adjustments. Total acquired a 49% interest in Voyageur, a 19.2% increase in its interest in Fort Hills (reducing Suncor's interest from 60% to 40.8%), and rights to proprietary mining technology, for cash consideration of $2.662 billion after closing adjustments.

Overall, Suncor recognized a loss of $112 million related to the disposition of its interests in Voyageur and Fort Hills and the technology sale. The loss included the derecognition of $267 million of goodwill associated with the disposed interests in Fort Hills and Voyageur.

Suncor Energy Inc.
070 2011 Second Quarter For more information about Suncor Energy, visit our website www.suncor.com


($ millions, increase/(decrease))	Three months ended June 30, 2010		Six months ended June 30, 2010

Energy supply and trading activities income	(671	)	(931	)
Other income	114		96
Energy supply and trading activities expenses	(557	)	(835	)

Net earnings	—		—


Total Assets ($ millions)	June 30 2011	Dec 31 2010

Oil Sands	39 723	39 382
Exploration and Production	13 714	15 899
Refining and Marketing	12 586	11 292
Corporate, Energy Trading and Eliminations	3 320	2 034

Total	69 343	68 607