Imperial Oil Profit, Revenue Decline in 2Q as Production Misses Views

By Adriano Marchese

Imperial Oil second-quarter profit and revenue dropped as lower commodity prices coupled with lower output weighed on results.

The Canadian petroleum company posted net income of 675 million Canadian dollars ($510.5 million), or C$1.15 a share, down from C$2.41 billion, or C$3.63 a share a year earlier.

Analysts polled by FactSet expected C$1.11 a share.

The decline was driven by tighter refining margins due to lower commodity prices and planned turnaround activity, it said.

Imperial Oil's cash flows also took a hit in the quarter, generating C$885 million from operating activities vs. C$2.68 billion in the same period of 2022.

Total revenues fell to C$11.82 billion from C$17.31 billion. Analysts expected C$11.38 billion.

Production fell to 363,000 gross oil-equivalent barrels a day in the quarter, vs. 413,000 barrels a year ago, which was due largely to the timing of its planned turnaround activity at Syncrude. Analysts expected production to fall to 378,100 barrels a day.

Imperial Oil also blamed the decline on production and steam cycle timing at its thermal in- situ operations at Cold Lake as well as the absence of unconventional volumes following the sale of XTO Energy Canada in the third quarter of last year.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

July 28, 2023 08:45 ET (12:45 GMT)

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