EXHIBIT 99.3

Unaudited Consolidated Financial Statements for the Third Quarter ended September 30, 2011


		Three months ended September 30				Nine months ended September 30
($ millions)		2011		2010		2011		2010

Revenues and Other Income
	Operating revenues, net of royalties (note 6)	10 494		7 717		29 260		23 021
	Other income	184		(45	)	393		243

		10 678		7 672		29 653		23 264

Expenses
	Purchases of crude oil and products	5 287		3 475		14 178		10 842
	Operating, selling and general (note 8)	1 814		1 921		6 039		5 651
	Transportation	182		178		525		513
	Depreciation, depletion, amortization and impairment (note 7)	834		947		2 929		2 825
	Exploration	17		79		106		177
	Loss (gain) on disposal of assets	(57	)	(562	)	134		(979	)
	Project start-up costs	59		21		142		48
	Financing expenses (income) (note 10)	609		(90	)	580		315

		8 745		5 969		24 633		19 392

Earnings Before Income Taxes		1 933		1 703		5 020		3 872

Provisions for Income Taxes(note 14)
	Current	239		301		821		799
	Deferred	407		178		1 322		530

		646		479		2 143		1 329

Net Earnings		1 287		1 224		2 877		2 543

Other Comprehensive Income (Loss)
	Foreign currency translation adjustment	157		159		198		(216	)
	Foreign currency translation adjustment relating to assets held for sale	—		58		—		(7	)
	Foreign currency translation reclassified to net earnings	—		(5	)	14		(4	)
	Cash flow hedges reclassified to net earnings	—		(1	)	—		(1	)
	Actuarial loss on employee retirement benefit plans, net of income taxes of $71 (2010 – $20) and $81 (2010 – $94) for the three and nine months ended September 30, respectively	(210	)	(59	)	(236	)	(276	)

Other Comprehensive Income (Loss)		(53	)	152		(24	)	(504	)

Total Comprehensive Income		1 234		1 376		2 853		2 039

Net Earnings per Common Share (dollars) (note 11)
	Basic	0.82		0.78		1.83		1.63
	Diluted	0.76		0.78		1.75		1.59

Cash dividends		0.11		0.10		0.32		0.30

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


($ millions)			September 30 2011	December 31 2010

Assets
	Current assets
		Cash and cash equivalents	3 287	1 077
		Accounts receivable	5 710	5 253
		Inventories	3 554	3 141
		Income taxes receivable	685	734
		Assets held for sale (note 12)	—	762

	Total current assets		13 236	10 967
	Property, plant and equipment, net		50 554	49 958
	Exploration and evaluation		4 396	3 961
	Other assets		296	230
	Goodwill and other intangible assets (note 13)		3 139	3 422
	Deferred income taxes		60	69

	Total assets		71 681	68 607

Liabilities and Shareholders' Equity
	Current liabilities
		Short-term debt	779	1 984
		Current portion of long-term debt	11	518
		Accounts payable and accrued liabilities	7 293	6 524
		Current portion of provisions	503	527
		Income taxes payable	1 050	929
		Liabilities associated with assets held for sale (note 12)	—	586

	Total current liabilities		9 636	11 068
	Long-term debt		10 175	9 829
	Other long-term liabilities		2 183	2 103
	Provisions		2 659	2 504
	Deferred income taxes		9 415	7 911
	Shareholders' equity		37 613	35 192

	Total liabilities and shareholders' equity		71 681	68 607


		Three months ended September 30				Nine months ended September 30
($ millions)		2011		2010		2011		2010

Operating Activities
Net earnings		1 287		1 224		2 877		2 543
Adjustments for:
	Depreciation, depletion, amortization and impairment	834		947		2 929		2 825
	Deferred income taxes	407		178		1 322		530
	Accretion of liabilities	39		45		122		141
	Unrealized foreign exchange loss (gain) on U.S. dollar denominated long-term debt	610		(252	)	362		(136	)
	Change in fair value of derivative contracts	(15	)	—		(91	)	(253	)
	Loss (gain) on disposal of assets	(57	)	(562	)	134		(979	)
	Share-based compensation	(253	)	101		(181	)	7
	Exploration	9		50		28		86
	Other	(140	)	(101	)	(406	)	(240	)
Decrease (increase) in non-cash working capital		(304	)	14		89		(782	)

Cash flow provided by operating activities		2 417		1 644		7 185		3 742

Investing Activities
Capital and exploration expenditures		(1 519	)	(1 472	)	(5 036	)	(4 126	)
Acquisitions		—		—		(842	)	—
Proceeds from disposal of assets		77		1 578		3 035		2 831
Other investments		(1	)	(16	)	1		(19	)
Increase in non-cash working capital		(54	)	(125	)	(10	)	(247	)

Cash flow used in investing activities		(1 497	)	(35	)	(2 852	)	(1 561	)

Financing Activities
Net change in short-term debt		28		(868	)	(1 205	)	(876	)
Net change in long-term debt		(4	)	(450	)	(14	)	(796	)
Repayment of long-term debt		(500	)	—		(500	)	—
Issuance of common shares under share option plans		22		12		207		47
Purchase of common shares for cancellation (note 9)		(141	)	—		(141	)	—
Dividends paid on common shares		(170	)	(155	)	(494	)	(462	)

Cash flow used in financing activities		(765	)	(1 461	)	(2 147	)	(2 087	)

Increase in Cash and Cash Equivalents		155		148		2 186		94
Effect of foreign exchange on cash and cash equivalents		35		(5	)	24		(1	)
Cash and cash equivalents at beginning of period		3 097		455		1 077		505

Cash and Cash Equivalents at End of Period		3 287		598		3 287		598

Supplementary Cash Flow Information
Interest paid		60		101		434		454
Income taxes paid		277		296		587		567

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


($ millions)	Share Capital		Contributed Surplus		Foreign Currency Translation		Cash Flow Hedges		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	—		—		—		—		2 543		2 543		—
Foreign currency translation adjustment	—		—		(227	)	—		—		(227	)	—
Net change in cash flow hedges	—		—		—		(1	)	—		(1	)	—
Actuarial loss on employee retirement benefit plans	—		—		—		—		(276	)	(276	)	—

Total comprehensive income	—		—		(227	)	(1	)	2 267		2 039		—
Dividends paid on common shares	—		—		—		—		(462	)	(462	)	—
Issued under share option plans	61		(16	)	—		—		—		45		2 847
Issued under dividend reinvestment plan	6		—		—		—		(6	)	—		197
Share-based compensation expense	—		36		—		—		—		36		—

At September 30, 2010	20 120		556		(227	)	14		13 680		34 143		1 562 822



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

Net earnings	—		—		—		—		2 877		2 877		—
Foreign currency translation adjustment	—		—		212		—		—		212		—
Actuarial loss on employee retirement benefit plans	—		—		—		—		(236	)	(236	)	—

Total comprehensive income	—		—		212		—		2 641		2 853		—
Dividends paid on common shares	—		—		—		—		(494	)	(494	)	—
Issued under share option plans	299		(53	)	—		—		—		246		8 875
Issued under dividend reinvestment plan	10		—		—		—		(10	)	—		275
Purchase of common shares for cancellation (note 9)	(65	)	—		—		—		(76	)	(141	)	(4 962	)
Liability for share purchase commitment (note 9)	(61	)	—		—		—		(64	)	(125	)	—
Share-based compensation expense	—		81		—		—		—		81		—
Income tax benefit of stock option deduction in the U.S.	—		1		—		—		—		1		—

At September 30, 2011	20 371		536		(239	)	14		16 931		37 613		1 569 677

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 nine months ended September 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 November 1, 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.

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

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.

In October 2011, the IASB issued International Financial Reporting Interpretation Committee (IFRIC) 20 Stripping Costs in the Production Phase of a Surface Mine. This interpretation requires the capitalization and depreciation of stripping costs in the production phase if an entity can demonstrate that it is probable future economic benefits will be realized, the costs can be reliably measured and the entity can identify the component of the ore body for which access has been improved. Retrospective application of this interpretation is effective for annual periods beginning on or after January 1, 2013, with earlier application permitted. The company is currently assessing the impact of this interpretation.

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 nine month periods ended September 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.


($ 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	598	—		—		—		598
		Accounts receivable	4 051	—		—		—		4 051
		Inventories	3 100	—		—		—		3 100
		Income taxes receivable	718	—		—		—		718
		Deferred income taxes	359	—		(359	)	—		—
		Assets held for sale ⁽⁹⁾	137	950		—		(21	)	1 066

	Total current assets		8 963	950		(359	)	(21	)	9 533
	Property, plant and equipment, net ⁽⁵⁾⁽⁷⁾⁽⁸⁾⁽⁹⁾⁽¹³⁾		54 853	—		(3 935	)	(1 226	)	49 692
	Exploration and evaluation		—	—		3 935		—		3 935
	Other assets		448	—		(225	)	—		223
	Goodwill		3 201	—		(3 201	)	—		—
	Goodwill and other intangible assets		—	—		3 426		—		3 426
	Deferred income taxes		53	—		17		—		70
	Assets of discontinued operations		950	(950	)	—		—		—

	Total assets		68 468	—		(342	)	(1 247	)	66 879

Liabilities and Shareholders' Equity
	Current liabilities
		Short-term debt	2	—		1 439		—		1 441
		Current portion of long-term debt	518	—		—		—		518
		Accounts payable and accrued liabilities ⁽¹¹⁾	6 416	—		828		101		7 345
		Current portion of provisions	—	—		(828	)	4		(824	)
		Income taxes payable	819	—		—		—		819
		Deferred income taxes	22	—		(22	)	—		—
		Liabilities associated with assets held for sale ⁽⁵⁾⁽⁶⁾⁽¹³⁾	55	581		—		6		642

	Total current liabilities		7 832	581		1 417		111		9 941
	Long-term debt ⁽⁷⁾		11 534	—		(1 439	)	142		10 237
	Accrued liabilities and other		4 222	—		(4 222	)	—		—
	Other long-term liabilities ⁽¹⁰⁾⁽¹¹⁾		—	—		1 682		406		2 088
	Provisions ⁽⁵⁾⁽⁶⁾		—	—		2 540		246		2 786
	Deferred income taxes ⁽¹³⁾		8 571	—		(320	)	(567	)	7 684
	Liabilities of discontinued operations		581	(581	)	—		—		—
	Shareholders' equity ⁽⁵⁾⁽⁶⁾⁽⁷⁾⁽⁸⁾⁽⁹⁾⁽¹⁰⁾⁽¹¹⁾⁽¹²⁾⁽¹³⁾		35 728	—		—		(1 585	)	34 143

	Total liabilities and shareholders' equity		68 468	—		(342	)	(1 247	)	66 879

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

Reconciliation of Comprehensive Income for the Three Months Ended September 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	8 114		227		(624	)	—		7 717
	Less: Royalties	(608	)	(8	)	616		—		—

	Operating revenues, net of royalties	7 506		219		(8	)	—		7 717
	Other income	(42	)	—		(3	)	—		(45	)

		7 464		219		(11	)	—		7 672

Expenses
	Purchases of crude oil and products	3 486		—		(11	)	—		3 475
	Operating, selling and general ⁽⁷⁾⁽¹⁰⁾⁽¹¹⁾	1 882		30		—		9		1 921
	Transportation	165		13		—		—		178
	Depreciation, depletion, amortization and impairment ⁽⁵⁾⁽⁷⁾⁽⁸⁾⁽⁹⁾	1 070		137		—		(260	)	947
	Accretion of asset retirement obligations	44		6		(50	)	—		—
	Exploration	67		12		—		—		79
	Gain on disposal of assets ⁽⁶⁾	(105	)	(440	)	—		(17	)	(562	)
	Project start-up costs	21		—		—		—		21
	Financing expenses (income) ⁽⁵⁾⁽⁷⁾	(142	)	3		50		(1	)	(90	)

		6 488		(239	)	(11	)	(269	)	5 969

Earnings Before Income Taxes		976		458		—		269		1 703

Provisions for Income Taxes
	Current	275		26		—		—		301
	Deferred ⁽¹³⁾	92		19		—		67		178

		367		45		—		67		479

Net Earnings from Continuing Operations		609		413		—		202		1 224
Net Earnings from Discontinued Operations		413		(413	)	—		—		—

Net Earnings		1 022		—		—		202		1 224

Other Comprehensive Income (Loss)
	Foreign currency translation adjustment	174		—		(15	)	—		159
	Foreign currency translation adjustment relating to assets held for sale ⁽⁶⁾	44		—		15		(1	)	58
	Foreign currency translation reclassified to net earnings ⁽⁶⁾	(6	)	—		—		1		(5	)
	Cash flow hedges reclassified to net earnings	(1	)	—		—		—		(1	)
	Actuarial loss on employee retirement benefit plans ⁽¹⁰⁾⁽¹³⁾	—		—		—		(59	)	(59	)

Other Comprehensive Income (Loss)		211		—		—		(59	)	152

Total Comprehensive Income		1 233		—		—		143		1 376

Reconciliation of Comprehensive Income for the Nine Months Ended September 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	23 963		823		(1 765	)	—		23 021
	Less: Royalties	(1 586	)	(41	)	1 627		—		—

	Operating revenues, net of royalties	22 377		782		(138	)	—		23 021
	Other income	123		—		120		—		243

		22 500		782		(18	)	—		23 264

Expenses
	Purchases of crude oil and products	10 860		—		(18	)	—		10 842
	Operating, selling and general ⁽⁷⁾⁽¹⁰⁾⁽¹¹⁾	5 520		152		—		(21	)	5 651
	Transportation	471		42		—		—		513
	Depreciation, depletion, amortization and impairment ⁽⁵⁾⁽⁷⁾⁽⁸⁾⁽⁹⁾	2 939		264		—		(378	)	2 825
	Accretion of asset retirement obligations	132		23		(155	)	—		—
	Exploration	160		17		—		—		177
	Gain on disposal of assets ⁽⁶⁾	(133	)	(815	)	—		(31	)	(979	)
	Project start-up costs	48		—		—		—		48
	Financing expenses (income) ⁽⁵⁾⁽⁷⁾	146		18		155		(4	)	315

		20 143		(299	)	(18	)	(434	)	19 392

Earnings Before Income Taxes		2 357		1 081		—		434		3 872

Provisions for Income Taxes
	Current	705		94		—		—		799
	Deferred ⁽¹³⁾	261		160		—		109		530

		966		254		—		109		1 329

Net Earnings from Continuing Operations		1 391		827		—		325		2 543
Net Earnings from Discontinued Operations		827		(827	)	—		—		—

Net Earnings		2 218		—		—		325		2 543

Other Comprehensive Income (Loss)
	Foreign currency translation adjustment ⁽⁵⁾	(268	)	—		51		1		(216	)
	Foreign currency translation adjustment relating to assets held for sale	44		—		(51	)	—		(7	)
	Foreign currency translation reclassified to net earnings ⁽⁶⁾	—		—		—		(4	)	(4	)
	Cash flow hedges reclassified to net earnings	(1	)	—		—		—		(1	)
	Actuarial loss on employee retirement benefit plans ⁽¹⁰⁾⁽¹³⁾	—		—		—		(276	)	(276	)

Other Comprehensive Income (Loss)		(225	)	—		—		(279	)	(504	)

Total Comprehensive Income		1 993		—		—		46		2 039

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

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 Sept 30, 2010		As at and for the nine months ended Sept 30, 2010

Property, plant and equipment, net	—		(657	)
Liabilities associated with assets held for sale	—		27
Provisions	—		257
Foreign currency translation	—		1
Retained earnings	—		(942	)
Depreciation, depletion, amortization and impairment	(10	)	(30	)
Financing expenses (income)	(4	)	(14	)
Foreign currency translation adjustment	—		1

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 Sept 30, 2010		As at and for the nine months ended Sept 30, 2010

Liabilities associated with assets held for sale	—		(16	)
Provisions	—		(11	)
Foreign currency translation	—		(4	)
Retained earnings	—		31
Gain on disposal of assets	(17	)	(31	)
Foreign currency translation adjustment relating to assets held for sale	(1	)	—
Foreign currency translation reclassified to net earnings	1		(4	)

In accordance with IFRS 1, the company elected to evaluate whether certain arrangements contain a lease based on the facts and circumstances existing at the 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:

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

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.

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

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.

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

The impact on the net earnings amount used in the calculation of diluted earnings per share for the three and nine months ended September 30, 2010 can be seen in note 11.

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.


	Three months ended September 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	2 096		1 729		1 490		1 464		7 427		5 140		21		—		11 034		8 333
Intersegment revenues	1 208		709		52		200		5		55		(1 265	)	(964	)	—		—
Less: Royalties	(237	)	(290	)	(303	)	(326	)	—		—		—		—		(540	)	(616	)

Operating revenues, net of royalties	3 067		2 148		1 239		1 338		7 432		5 195		(1 244	)	(964	)	10 494		7 717
Other income	19		113		11		—		23		(11	)	131		(147	)	184		(45	)

	3 086		2 261		1 250		1 338		7 455		5 184		(1 113	)	(1 111	)	10 678		7 672

Expenses
Purchases of crude oil and products	268		226		135		—		6 123		4 258		(1 239	)	(1 009	)	5 287		3 475
Operating, selling and general	1 178		1 066		154		231		492		554		(10	)	70		1 814		1 921
Transportation	91		63		26		73		59		50		6		(8	)	182		178
Depreciation, depletion, amortization and impairment	337		294		360		526		112		112		25		15		834		947
Exploration	1		1		16		78		—		—		—		—		17		79
Gain on disposal of assets	—		—		(56	)	(546	)	(1	)	(16	)	—		—		(57	)	(562	)
Project start-up costs	59		21		—		—		—		—		—		—		59		21
Financing expenses (income)	19		30		(6	)	27		(7	)	3		603		(150	)	609		(90	)

	1 953		1 701		629		389		6 778		4 961		(615	)	(1 082	)	8 745		5 969

Earnings (Loss) Before Income Taxes	1 133		560		621		949		677		223		(498	)	(29	)	1 933		1 703
Income taxes	296		147		201		268		198		64		(49	)	—		646		479

Net Earnings (Loss)	837		413		420		681		479		159		(449	)	(29	)	1 287		1 224

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


	Nine months ended September 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	6 376		4 981		4 462		4 648		19 928		14 994		47		25		30 813		24 648
Intersegment revenues	3 099		1 877		418		616		145		206		(3 662	)	(2 699	)	—		—
Less: Royalties	(521	)	(542	)	(1 032	)	(1 085	)	—		—		—		—		(1 553	)	(1 627	)

Operating revenues, net of royalties	8 954		6 316		3 848		4 179		20 073		15 200		(3 615	)	(2 674	)	29 260		23 021
Other income	26		418		(4	)	1		67		19		304		(195	)	393		243

	8 980		6 734		3 844		4 180		20 140		15 219		(3 311	)	(2 869	)	29 653		23 264

Expenses
Purchases of crude oil and products	1 191		728		441		163		16 128		12 527		(3 582	)	(2 576	)	14 178		10 842
Operating, selling and general	3 751		3 267		574		664		1 572		1 602		142		118		6 039		5 651
Transportation	265		203		86		191		172		143		2		(24	)	525		513
Depreciation, depletion, amortization and impairment	982		1 002		1 561		1 448		326		326		60		49		2 929		2 825
Exploration	49		6		57		171		—		—		—		—		106		177
Loss (gain) on disposal of assets	106		11		40		(972	)	(11	)	(19	)	(1	)	1		134		(979	)
Project start-up costs	142		45		—		3		—		—		—		—		142		48
Financing expenses (income)	55		82		44		48		(2	)	4		483		181		580		315

	6 541		5 344		2 803		1 716		18 185		14 583		(2 896	)	(2 251	)	24 633		19 392

Earnings (Loss) Before Income Taxes	2 439		1 390		1 041		2 464		1 955		636		(415	)	(618	)	5 020		3 872
Income taxes	626		354		1 019		912		536		184		(38	)	(121	)	2 143		1 329

Net Earnings (Loss)	1 813		1 036		22		1 552		1 419		452		(377	)	(497	)	2 877		2 543

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

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 September 30, 2011 is approximately $400 million.

The impairment losses were 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.

In the third quarter of 2011, the company announced a Normal Course Issuer Bid to purchase for cancellation up to $500 million of its common shares between September 6, 2011 and September 5, 2012. During the quarter, the company purchased 5.0 million common shares for total consideration of $141 million. Of the amount paid, $65 million was charged to share capital and $76 million to retained earnings.

At September 30, 2011, the company recorded a liability of $125 million for share purchases that may take place during its internal trading blackout period under an automatic share repurchase agreement with an independent broker. Of the liability recognized, $61 million was charged to share capital and $64 million to retained earnings.


		Three months ended September 30				Nine months ended September 30
($ millions)		2011		2010		2011		2010

Interest on debt		153		174		485		531
Capitalized interest		(150	)	(65	)	(402	)	(203	)

	Interest expense	3		109		83		328
	Accretion of liabilities	39		45		122		141
	Foreign exchange loss (gain) on U.S. dollar denominated long-term debt	610		(252	)	362		(136	)
	Other foreign exchange loss (gain)	(43	)	8		13		(18	)

Total financing expenses (income)		609		(90	)	580		315

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


		Three months ended September 30			Nine months ended September 30
($ millions)		2011		2010	2011		2010

Net earnings		1 287		1 224	2 877		2 543
Dilutive impact of accounting for awards as equity-settled ⁽¹⁾		(84	)	—	(98	)	(43	)

Net earnings — diluted		1 203		1 224	2 779		2 500

(millions of common shares)
Weighted-average number of common shares		1 573		1 563	1 572		1 562
Dilutive securities:
	Effect of share options	9		11	12		14

Weighted-average number of diluted common shares		1 582		1 574	1 584		1 576

(dollars per common share)
Basic earnings per share		0.82		0.78	1.83		1.63
Diluted earnings per share		0.76		0.78	1.75		1.59

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

In the third quarter of 2011, the company completed the sale of certain non-core assets in northern Alberta for net proceeds of $72 million.

The Company had no assets or liabilities classified as assets held for sale at September 30, 2011.

The assets and liabilities classified as held for sale at December 31, 2010 were as follows:

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.


			Three months ended September 30				Nine months ended September 30
($ millions)			2011		2010		2011	2010

Provision for (recovery of) income taxes:
	Current:
		Canada	44		34		84	50
		Foreign	195		267		737	749
	Deferred:
		Canada	417		223		1 091	574
		Foreign	(10	)	(45	)	231	(44	)

Total provision for income taxes			646		479		2 143	1 329

In March 2011, the U.K. government substantively enacted a 12% increase in the supplementary charge on U.K. oil and gas profits. Accordingly, in the first quarter of 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 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com


($ millions, increase /(decrease))	Three months ended September 30, 2010		Nine months ended September 30, 2010

Energy supply and trading activities income	(1 119	)	(2 050	)
Other income	(45	)	51
Energy supply and trading activities expenses	(1 164	)	(1 999	)
Net earnings	—		—


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

Oil Sands	40 813	39 382
Exploration and Production	14 102	15 899
Refining and Marketing	13 094	11 292
Corporate, Energy Trading and Eliminations	3 672	2 034

Total	71 681	68 607