Imperial Oil profit more than doubles

Reuters
July 29, 2010

Imperial Oil Ltd.'s second-quarter profit jumped 147 percent on higher oil prices and a jump in oil sands production, the Canada's second-largest oil producer and refiner said Thursday.

Imperial, which is majority owned by U.S. oil major Exxon Mobil Corp., earned $517 million, or 60 cents a share, up from year-earlier $209 million, or 25 cents a share.

Analysts, on average, had expected earnings of 64 cents a share, according to Thomson Reuters I/B/E/S.

The earnings included gains on asset sales of $36 million.

Revenues were $6.1 billion, up 15 percent from $5.3 billion.

Imperial, known for its dominant position in oil sands and heavy crude, and its national chain of Esso gas stations, said results were helped by higher prices for crude oil, increased production at its Cold Lake, Alberta, and Syncrude oil sands projects and stronger refining margins.

Oil production in the quarter averaged 209,000 barrels a day, up 10 percent from a year earlier. Natural gas output rose 7 percent to 253 million cubic feet a day.

The company is developing the $8 billion Kearl oil sands project in Alberta and is waiting for Canada's energy regulator to make a go-ahead decision on the $16.2 billion Mackenzie Valley gas pipeline.

Imperial shares were off 21 cents at $40.45 on the Toronto Stock Exchange. Exxon Mobil owns 69.6 percent of Imperial.

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