Imperial profit climbs on higher output

Imperial Oil Ltd's first-quarter profit rose 64 percent on higher oil sands production and rich refining margins, Canada's second-largest oil producer and refiner said on Thursday. Imperial, the Canadian affiliate of Exxon Mobil Corp, earned C$781 million ($822 million), or 91 Canadian cents a share, up from a year-earlier C$476 million, or 56 Canadian cents a share.
That lagged an estimate of 96 Canadian cents a share, the average among analysts surveyed by Thomson Reuters I/B/E/S.
Revenues rose 11 percent to C$6.9 billion from C$6.2 billion.
Imperial, which is developing the C$8 billion Kearl oil sands project in northern Alberta and is lead partner in the C$16.2 billion Mackenzie gas pipeline proposal in Canada's Far North, said results were helped by higher output from its Cold Lake, Alberta, oil sands development and its 25 percent stake in the Syncrude Canada oil sands joint venture.
Exploration and production net income rose 84 million from a year earlier to C$528 million.
Imperial and its industry peers benefited from US benchmark oil prices that averaged $94.60 a barrel in the quarter, up 20 percent from the year before.
However, a glut of heavy crude due to tight export pipeline capacity pressured prices in Canada. Imperial said prices for tar sands-derived bitumen averaged C$55.76 a barrel, a 10 percent drop.
Meanwhile, the stronger Canadian dollar tempered results, it said. Imperial's overall oil and gas production averaged 310,000 barrels of oil equivalent a day, up 7 percent.
The Kearl project, a 50-50 joint venture with Exxon Mobil, is 60 percent complete and due to start up late next year.