Canada’s Imperial Oil saw higher profit in its first quarter on Friday as the integrated oil firm was helped by robust production, but saw maintenance activities weighing on its throughput volumes.
Refining margins have eased from sky-high levels in 2022, when Russia’s invasion of Ukraine disrupted crude supplies. Profits stabilized through last year on weaker economic activity and an increase in global refining capacity.
Throughput, the amount of petroleum product that moves through a refinery in a particular period, stood at 407,000 bpd, down from 417,000 bpd last year. It was also lower than the 415,000 bpd estimated by analysts, according to LSEG data, due to maintenance activities.
Refinery capacity utilization was 94 per cent, lower than 96 per cent in the first quarter of 2023.
Offsetting downstream performance, upstream production was 421,000 gross barrels of oil equivalent per day in the first quarter, up from 413,000 gross boepd last year.
Output was helped by the highest ever first-quarter production at its Kearl oil sands site, the company said.
Additionally, cash flow from operating activities also rose, to $1.08-billion, from cash flow of $821-million used last year in the same period.
RBC Capital Markets analysts said despite the mixed results, they continue to have a constructive stance towards Imperial Oil, to reflect its consistently solid operating performance and commitment to shareholder returns.
The company’s net profit stood at $1.2-billion, or $2.23 per share in the quarter ended March 31. Analysts had expected a profit of $2.03 per share.
Imperial Oil Ltd. reported a first-quarter profit of $1.20 billion, down from $1.25 billion in the same quarter last year.
The company says the profit amounted to $2.23 per diluted share for the quarter ended March 31, up from $2.13 per diluted share in its first quarter last year when it had more shares outstanding.
Total revenue and other income amounted to $12.28 billion, up from $12.12 billion in its first quarter of 2023.
Imperial says production averaged 421,000 gross oil-equivalent barrels per day in the quarter, up from 413,000 a year earlier.
Refinery throughput for the quarter averaged 407,000 barrels per day, down from 417,000 barrels per day in the first quarter of 2023.
Refinery capacity utilization was 94 per cent, down from 96 per cent.
This report by The Canadian Press was first published April 26, 2024.
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