🚀 ProPicks AI Hits +34.9% Return!Read Now

Imperial Oil's quarterly profit falls on lower refining margin, higher costs

Published 2019-11-01, 08:29 a/m
© Reuters.  Imperial Oil's quarterly profit falls on lower refining margin, higher costs
XOM
-
IMO
-

Nov 1 (Reuters) - Canada's Imperial Oil Ltd IMO.TO reported a 43% fall in quarterly profit on Friday, as higher Canadian crude prices dented refining margins and expenses rose.

The company said refinery throughput averaged 363,000 barrels per day (bpd) in the third quarter, compared with 388,000 bpd a year earlier.

Earnings from downstream unit fell nearly 56% to C$221 million in the quarter.

Canada's main oil-producing province, Alberta, imposed mandatory curbs on oil production this year, reducing a price discount on Canadian oil compared with U.S. oil. The move, which helped some producers, was opposed by integrated companies such as Imperial, which benefited from low-cost oil to run through their refineries.

Narrower Canadian crude price differentials have also made it less economic for producers to ship their crude by rail.

Alberta's current government, elected in April, on Thursday answered the call from a number of producers to allow them to produce above their current limit as long as any incremental production is moved to the market by rail.

Imperial said crude-by-rail shipments averaged 52,000 bpd in the quarter, compared to 64,000 bpd in the previous quarter.

The company, majority-owned by Exxon Mobil Corp (NYSE:XOM) XOM.N , said net income fell to C$424 million ($322.12 million), or 56 Canadian cents per share, in the third quarter, from C$749 million, or 94 Canadian cents, a year earlier. company's gross production averaged 407,000 barrels of oil equivalent per day (boepd), up from 393,000 boepd in the year-prior quarter.

($1 = 1.3163 Canadian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.