Unaudited Consolidated Financial Statements for the third quarter ended September 30, 2012


		Three months ended September 30				Nine months ended September 30
($ millions)		2012		2011		2012		2011

Revenues and Other Income
	Operating revenues, net of royalties (note 3)	9 512		10 235		28 764		28 433
	Other income (note 4)	89		184		317		393

		9 601		10 419		29 081		28 826

Expenses
	Purchases of crude oil and products	4 141		5 017		12 630		13 329
	Operating, selling and general	2 277		1 814		6 761		6 039
	Transportation	171		193		491		547
	Depreciation, depletion, amortization and impairment (note 5)	896		834		3 435		2 929
	Exploration	97		17		238		106
	Loss (gain) on disposal of assets	(3	)	(57	)	(39	)	134
	Project start-up costs	17		59		40		142
	Financing expenses (income) (note 8)	(260	)	609		(130	)	580

		7 336		8 486		23 426		23 806

Earnings before Income Taxes		2 265		1 933		5 655		5 020

Income Taxes
	Current	319		239		1 245		821
	Deferred	391		407		1 065		1 322

		710		646		2 310		2 143

Net Earnings		1 555		1 287		3 345		2 877

Other Comprehensive Income (Loss)
	Foreign currency translation adjustment	(135	)	157		(116	)	198
	Foreign currency translation reclassified to net earnings	—		—		—		14
	Cash flow hedges reclassified to net earnings	(1	)	—		(1	)	—
	Actuarial loss on employee retirement benefit plans, net of income taxes of $22 (2011 – $71) and $78 (2011 – $81) for the three and nine months ended September 30, respectively	(65	)	(210	)	(209	)	(236	)

Other Comprehensive Income (Loss)		(201	)	(53	)	(326	)	(24	)

Total Comprehensive Income		1 354		1 234		3 019		2 853

Per Common Share (dollars) (note 10)
	Net earnings – basic	1.01		0.82		2.16		1.83
	Net earnings – diluted	1.01		0.76		2.15		1.75
	Cash dividends	0.13		0.11		0.37		0.32


($ millions)			Sep 30 2012	Dec 31 2011

Assets
	Current assets
		Cash and cash equivalents	5 448	3 803
		Accounts receivable	5 052	5 412
		Inventories	3 745	4 205
		Income taxes receivable	779	704

	Total current assets		15 024	14 124
	Property, plant and equipment, net		54 659	52 589
	Exploration and evaluation		4 035	4 554
	Other assets		315	311
	Goodwill and other intangible assets		3 132	3 139
	Deferred income taxes		78	60

	Total assets		77 243	74 777

Liabilities and Shareholders' Equity
	Current liabilities
		Short-term debt	741	763
		Current portion of long-term debt	308	12
		Accounts payable and accrued liabilities	7 527	7 755
		Current portion of provisions	1 150	811
		Income taxes payable	1 276	969

	Total current liabilities		11 002	10 310
	Long-term debt		9 424	10 004
	Other long-term liabilities		2 284	2 392
	Provisions		3 823	3 752
	Deferred income taxes		10 721	9 719
	Shareholders' equity		39 989	38 600

	Total liabilities and shareholders' equity		77 243	74 777

Suncor Energy Inc.
050 2012 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)		2012		2011		2012		2011

Operating Activities
Net earnings		1 555		1 287		3 345		2 877
Adjustments for:
	Depreciation, depletion, amortization and impairment	896		834		3 435		2 929
	Deferred income taxes	391		407		1 065		1 322
	Accretion	45		39		137		122
	Unrealized foreign exchange loss (gain) on U.S. dollar denominated long-term debt	(289	)	610		(272	)	362
	Change in fair value of derivative contracts	17		(15	)	30		(91	)
	Loss (gain) on disposal of assets	(3	)	(57	)	(39	)	134
	Share-based compensation	190		(253	)	171		(181	)
	Exploration	65		9		124		28
	Settlement of decommissioning and restoration liabilities	(89	)	(125	)	(345	)	(366	)
	Other	(38	)	(15	)	(141	)	(40	)
Decrease (increase) in non-cash working capital		(352	)	(304	)	161		89

Cash flow provided by operating activities		2 388		2 417		7 671		7 185

Investing Activities
Capital and exploration expenditures		(1 670	)	(1 519	)	(4 754	)	(5 036	)
Acquisitions		—		—		—		(842	)
Proceeds from disposal of assets		15		77		58		3 035
Other investments		(2	)	(1	)	(6	)	1
Decrease (increase) in non-cash working capital		92		(54	)	142		(10	)

Cash flow used in investing activities		(1 565	)	(1 497	)	(4 560	)	(2 852	)

Financing Activities
Net change in short-term debt		(24	)	28		(22	)	(1 205	)
Net change in long-term debt		(5	)	(4	)	(12	)	(14	)
Repayment of long-term debt		—		(500	)	—		(500	)
Issuance of common shares under share option plans		12		22		179		207
Purchase of common shares for cancellation, net of option premiums (note 7)		(312	)	(141	)	(1 043	)	(141	)
Dividends paid on common shares		(196	)	(170	)	(561	)	(494	)

Cash flow used in financing activities		(525	)	(765	)	(1 459	)	(2 147	)

Increase in Cash and Cash Equivalents		298		155		1 652		2 186
Effect of foreign exchange on cash and cash equivalents		(16	)	35		(7	)	24
Cash and cash equivalents at beginning of period		5 166		3 097		3 803		1 077

Cash and Cash Equivalents at End of Period		5 448		3 287		5 448		3 287

Supplementary Cash Flow Information
Interest paid		65		60		382		434
Income taxes paid		474		277		1 095		587


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

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

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



At December 31, 2011	20 303		545		(207	)	14		17 945		38 600		1 558 636

Net earnings	—		—		—		—		3 345		3 345		—
Foreign currency translation adjustment	—		—		(116	)	—		—		(116	)	—
Net change in cash flow hedges	—		—		—		(1	)	—		(1	)	—
Actuarial loss on employee retirement benefit plans	—		—		—		—		(209	)	(209	)	—

Total comprehensive income	—		—		(116	)	(1	)	3 136		3 019		—
Issued under share option plans	240		(44	)	—		—		—		196		10 086
Issued under dividend reinvestment plan	12		—		—		—		(12	)	—		391
Purchase of common shares for cancellation, net of option premiums (note 7)	(447	)	—		—		—		(596	)	(1 043	)	(34 385	)
Liability for share purchase commitment (note 7)	(121	)	—		—		—		(179	)	(300	)	—
Share-based compensation	—		78		—		—		—		78		—
Dividends paid on common shares	—		—		—		—		(561	)	(561	)	—

At September 30, 2012	19 987		579		(323	)	13		19 733		39 989		1 534 728

Suncor Energy Inc.
052 2012 Third 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, specifically International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board. 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, 2011.

The policies applied in these condensed interim consolidated financial statements are based on International Financial Reporting Standards (IFRS) issued and outstanding as at October 31, 2012, the date the Audit Committee approved these statements on behalf of the Board of Directors.

The consolidated financial statements are prepared on a historical cost basis except as detailed in the accounting policies disclosed in the company's consolidated financial statements for the year ended December 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, which is the company's functional currency.

The timely preparation of financial statements requires that management make estimates and assumptions and use judgment. 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 financial statements for the year ended December 31, 2011.

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

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⁽¹⁾				Exploration and Production				Refining and Marketing				Corporate, Energy Trading and Eliminations				Total
($ millions)	2012		2011		2012		2011		2012		2011		2012		2011		2012		2011

Revenues and Other Income
Gross revenues	2 229		2 129		1 093		1 490		6 720		7 135		29		21		10 071		10 775
Intersegment revenues	823		927		51		52		59		5		(933	)	(984	)	—		—
Less: Royalties	(262	)	(237	)	(297	)	(303	)	—		—		—		—		(559	)	(540	)

Operating revenues, net of royalties	2 790		2 819		847		1 239		6 779		7 140		(904	)	(963	)	9 512		10 235
Other income	6		19		7		11		7		23		69		131		89		184

	2 796		2 838		854		1 250		6 786		7 163		(835	)	(832	)	9 601		10 419

Expenses
Purchases of crude oil and products	46		9		5		135		5 016		5 831		(926	)	(958	)	4 141		5 017
Operating, selling and general	1 372		1 178		182		154		605		492		118		(10	)	2 277		1 814
Transportation	99		102		29		26		51		59		(8	)	6		171		193
Depreciation, depletion, amortization and impairment	503		337		231		360		117		112		45		25		896		834
Exploration	2		1		95		16		—		—		—		—		97		17
Loss (gain) on disposal of assets	3		—		(1	)	(56	)	(4	)	(1	)	(1	)	—		(3	)	(57	)
Project start-up costs	16		59		—		—		1		—		—		—		17		59
Financing expenses (income)	33		19		20		(6	)	3		(7	)	(316	)	603		(260	)	609

	2 074		1 705		561		629		5 789		6 486		(1 088	)	(334	)	7 336		8 486

Earnings (Loss) before Income Taxes	722		1 133		293		621		997		677		253		(498	)	2 265		1 933
Income taxes
Current	—		1		227		119		90		98		2		21		319		239
Deferred	187		295		(22	)	82		199		100		27		(70	)	391		407

	187		296		205		201		289		198		29		(49	)	710		646

Net Earnings (Loss)	535		837		88		420		708		479		224		(449	)	1 555		1 287

Capital and Exploration Expenditures	1 113		1 129		387		189		147		120		23		81		1 670		1 519

Suncor Energy Inc.
054 2012 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com


	Nine months ended September 30
	Oil Sands⁽¹⁾				Exploration and Production				Refining and Marketing				Corporate, Energy Trading and Eliminations				Total
($ millions)	2012		2011		2012		2011		2012		2011		2012		2011		2012		2011

Revenues and Other Income
Gross revenues	6 437		6 174		4 434		4 462		19 621		19 303		58		47		30 550		29 986
Intersegment revenues	2 340		2 496		477		418		145		46		(2 962	)	(2 960	)	—		—
Less: Royalties	(619	)	(521	)	(1 167	)	(1 032	)	—		—		—		—		(1 786	)	(1 553	)

Operating revenues, net of royalties	8 158		8 149		3 744		3 848		19 766		19 349		(2 904	)	(2 913	)	28 764		28 433
Other income	20		26		47		(4	)	16		67		234		304		317		393

	8 178		8 175		3 791		3 844		19 782		19 416		(2 670	)	(2 609	)	29 081		28 826

Expenses
Purchases of crude oil and products	151		364		259		441		15 215		15 404		(2 995	)	(2 880	)	12 630		13 329
Operating, selling and general	4 063		3 751		653		574		1 696		1 572		349		142		6 761		6 039
Transportation	274		287		95		86		150		172		(28	)	2		491		547
Depreciation, depletion, amortization and impairment	1 412		982		1 557		1 561		340		326		126		60		3 435		2 929
Exploration	53		49		185		57		—		—		—		—		238		106
Loss (gain) on disposal of assets	(29	)	106		(1	)	40		(8	)	(11	)	(1	)	(1	)	(39	)	134
Project start-up costs	38		142		—		—		2		—		—		—		40		142
Financing expenses (income)	94		55		54		44		1		(2	)	(279	)	483		(130	)	580

	6 056		5 736		2 802		2 803		17 396		17 461		(2 828	)	(2 194	)	23 426		23 806

Earnings (Loss) before Income Taxes	2 122		2 439		989		1 041		2 386		1 955		158		(415	)	5 655		5 020
Income taxes
Current	1		1		973		634		244		134		27		52		1 245		821
Deferred	623		625		26		385		461		402		(45	)	(90	)	1 065		1 322

	624		626		999		1 019		705		536		(18	)	(38	)	2 310		2 143

Net Earnings (Loss)	1 498		1 813		(10	)	22		1 681		1 419		176		(377	)	3 345		2 877

Capital and Exploration Expenditures	3 383		3 830		908		611		394		412		69		183		4 754		5 036


		Three months ended September 30			Nine months ended September 30
($ millions)		2012		2011	2012	2011

Risk management activities		2		17	1	(3	)
Energy trading activities
	Change in fair value of contracts	33		56	161	211
	Gains (losses) on inventory valuation	(4	)	18	21	(27	)
Investment and interest income		19		35	55	131
Renewable energy grants		19		18	45	50
Other		20		40	34	31

		89		184	317	393

In the second quarter of 2012, the company recognized after-tax impairment charges and write-downs of $694 million related to Syrian assets in its Exploration and Production business. In December 2011, the company declared force majeure under its contractual obligations, suspended its operations and ceased recording production due to political unrest and international sanctions affecting that country. No Syrian production has been recorded in 2012.

As there was no resolution of the political situation at the end of the second quarter, an impairment test on the company's assets was performed. In calculating the company's impairment, the recoverable amount was determined using a value-in-use methodology. The company used an expected cash flow approach based on 2011 year-end reserves data updated for the company's best estimate of price realizations, with three scenarios representing i) resumption of operations in 18 months, ii) resumption of operations in 30 months, 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 19%. The calculation was most sensitive to management's assumptions on the relative likelihood of the three scenarios and price realizations.

The impairment losses were recorded as part of Depreciation, Depletion, Amortization and Impairment expense and charged against Property, Plant and Equipment ($604 million) and other current assets ($23 million).

In the second quarter of 2012, the company also wrote off the remainder of its Syrian receivables ($67 million). A provision of $64 million was previously recorded at December 31, 2011.

After these impairments and write-offs, the carrying value of the company's net assets in Syria as at September 30, 2012 was approximately $250 million.

No additional impairment has been recognized in the third quarter of 2012 as no indicators have been identified that would change the company's overall impairment assessment.

In the second quarter of 2011, the company recognized after-tax impairment charges of $514 million related to Libyan assets in its Exploration and Production business. At that time, production had been shut in due to political violence in Libya. The impairment losses were recorded as part of Depreciation, Depletion, Amortization and Impairment expense, and charged against Property, Plant and Equipment ($259 million), Exploration and Evaluation assets ($211 million), and Inventories ($44 million).

Suncor Energy Inc.
056 2012 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com

During the fourth quarter of 2011, the company reversed $11 million impairment charge that related to crude oil inventories. The reversal was the result of lifting certain of the political sanctions, and the joint venture partner confirming the existence of previously written off crude oil.

No additional impairment or impairment reversal has been recognized in the third quarter of 2012 as no indicators have been identified that would change the company's overall impairment assessment.

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

In September 2012, the company completed its first Normal Course Issuer Bid and put option program, and also announced a second Normal Course Issuer Bid program to purchase for cancellation up to $1 billion of its common shares between September 20, 2012 and September 19, 2013.

During the nine months ended September 30, 2012, the company purchased 34.4 million (2011 – 5.0 million) common shares for total consideration of $1,043 million (2011 – $141 million), net of $1.3 million (2011 – $nil) option premiums recognized in share capital. Of the amount recognized, $447 million (2011 – $65 million) was charged to share capital and $596 million (2011 – $76 million) to retained earnings.

The company has also recorded a liability of $300 million for share purchases that may take place during its internal blackout period under an automatic repurchase plan agreement with an independent broker. Of the liability recognized, $121 million was charged to share capital and $179 million to retained earnings.


		Three months ended September 30				Nine months ended September 30
($ millions)		2012		2011		2012		2011

Interest on debt		162		153		488		485
Capitalized interest		(138	)	(150	)	(444	)	(402	)

	Interest expense	24		3		44		83
	Accretion	45		39		137		122
	Foreign exchange loss (gain) on U.S. dollar denominated long-term debt	(289	)	610		(272	)	362
	Foreign exchange and other	(40	)	(43	)	(39	)	13

		(260	)	609		(130	)	580

In the second quarter of 2012, the Ontario government substantively enacted legislation to freeze the general corporate income tax rate at the current 11.5% instead of the planned reduction to 10%. Accordingly, the company recognized an increase in deferred tax expense of $88 million related to the revaluation of deferred income tax balances.

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


		Three months ended September 30			Nine months ended September 30
($ millions)		2012	2011		2012		2011

Net earnings		1 555	1 287		3 345		2 877
Dilutive impact of accounting for awards as equity-settled ⁽¹⁾		—	(84	)	(6	)	(98	)

Net earnings – diluted		1 555	1 203		3 339		2 779

(millions of common shares)
Weighted average number of common shares		1 536	1 573		1 550		1 572
Dilutive securities:
	Effect of share options	2	9		4		12

Weighted average number of diluted common shares		1 538	1 582		1 554		1 584

(dollars per common share)
Basic earnings per share		1.01	0.82		2.16		1.83
Diluted earnings per share		1.01	0.76		2.15		1.75

Suncor Energy Inc.
058 2012 Third Quarter For more information about Suncor Energy, visit our website www.suncor.com


	Three months ended		Nine months ended
($ millions, increase/(decrease))	September 30, 2011		September 30, 2011

Gross revenues	(259	)	(827	)
Purchases of crude oil and products	(259	)	(827	)

Net earnings	—		—