Suncor Energy Inc. said it more than tripled profits in the spring quarter to $3.7 billion, allowing the Calgary-based producer to boost shareholder rewards while more than doubling royalty payments to governments.

“The quarter was led by the exemplary performance of our downstream business,” Rich Kruger, Suncor’s president and chief executive, said in a release.

Suncor sold 654,800 barrels a day of refined product, a record for the second quarter. The company started producing jet fuel at its Montreal refinery in November, just months before war in the Middle East led to a sharp spike in profit margins for refiners.

Crack spreads — which measure margins generated by converting oil into fuels like gasoline and diesel — roughly doubled in the period stretching from April to June.

During the quarter, Suncor’s retail chain, Petro-Canada, announced a loyalty program with WestJet Airlines Ltd. covering fuel and flights.

Free funds flow, the cash left after spending, hit a record $3.9 billion. Suncor sent $1.7 billion to shareholders with dividends and purchases of its own stock, which can lift the share price.

The company said it would spend $500 million buying its own stock every month, up from $350 million starting this month. Net debt fell to nearly $4.5 billion from $7.6 billion a year ago.

Government royalties, which overwhelmingly flow to Alberta, rose to $1.2 billion, up sharply from $600 million a year ago.

Upstream production fell to 760,900 barrels a day from 808,100 on a planned turnaround at its Firebag oilsands project. Cash operating costs at Fort Hills rose to $44.50 a barrel from $36.75, which Suncor blamed on heavy snow and a fast spring melt at the mines.

Maintenance at Syncrude that was supposed to happen this spring has been pushed to the third quarter.

Net earnings worked out to $3.17 a share, up from $1.13 billion or 93 cents in the same quarter of 2025. West Texas Intermediate averaged US$92.85 a barrel against US$63.70 a year ago.

Suncor holds its analyst call Wednesday morning.

gfoster@postmedia.com