Imperial Oil’s profit rises on refining, chemicals strength

A 55 percent rise in quarterly profit is reported by Canada’s Imperial Oil Ltd (TO:IMO), as its refining and chemicals businesses benefited from cheaper raw materials, offsetting discounted Canadian crude prices.

The Calgary-based company’s income from refining rose about 37 percent to C$521 million ($405 million) in the first quarter.

Restrictions related to the export of Canadian heavy crude due to a lack of pipeline capacity and delays in shipping by rail have weighed on the industry, widening Canadian oil’s discount compared to U.S. light crude.

Imperial’s production fell to 370,000 gross oil-equivalent barrels per day from 378,000 a year earlier due to lower volumes at its Cold Lake oil sands project in northeastern Alberta.

In the quarter ended March 31, the oil producer and refiner’s net income jumped 55 percent to C$516 million, or 62 Canadian cents per share.

“Total revenue and other income rose about 11 percent to C$7.93 billion”, said Imperial, which is majority owned by Exxon Mobil Corp (N:XOM)./Reuters.com

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