Imperial Oil swings to quarterly profit helped by oil price recovery
- Calgary-based Imperial, which is majority-owned by Exxon Mobil Corp, is benefitting from higher global oil prices as fuel usage picks up from last year, when coronavirus pandemic-related lockdowns decimated demand.
- The recovery, however, remains spotty with second and third waves of COVID-19 surging in various parts of the world, including Canada, and an uneven rollout of vaccines.
Canada's Imperial Oil Ltd eked out a first-quarter profit on Friday, after having slipped into a loss in the fourth, helped by higher prices for crude, as well as improved refining and chemical margins.
Calgary-based Imperial, which is majority-owned by Exxon Mobil Corp, is benefitting from higher global oil prices as fuel usage picks up from last year, when coronavirus pandemic-related lockdowns decimated demand.
The recovery, however, remains spotty with second and third waves of COVID-19 surging in various parts of the world, including Canada, and an uneven rollout of vaccines.
While demand has rebounded considerably, the lingering effects of the weak 2020 business environment has continued to have a negative impact on financial results in 2021 when compared to periods prior to the pandemic, Imperial said.
Net income in the company's chemicals segment, however, climbed to C$67 million in the quarter, up from C$23 million in the previous.
Imperial posted a profit of C$392 million ($319.32 million), or 53 Canadian cents per share, for the quarter ended March 31, compared to a loss of C$1.15 billion, or C$1.56 per share, in the previous quarter.
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