Energy giant Imperial Oil reported on Friday that its second quarter earnings reached $196 million, an increase of $273 million compared to the net loss of $77 million in the same period of 2017.
It said the quarter was characterized by significant planned maintenance at its major upstream and downstream assets. These activities affected operational results and were aligned with the company’s commitment to maintain safe and reliable operations. Planned turnarounds occurred at one of Kearl’s two plants, Cold Lake’s second largest plant, Syncrude’s largest coker and at Strathcona, the company’s largest refinery, it said.
“Completion of the heavy maintenance schedule in the second quarter positions the company for strong operational performance in the second half of 2018,” said Rich Kruger, chairman, president and chief executive officer, in a statement.
Imperial said refinery throughput averaged 363,000 barrels per day and petroleum product sales averaged 510,000 barrels per day.
“Despite the Strathcona refinery turnaround, Imperial achieved its highest quarterly sales volumes in nearly 30 years, demonstrating the company’s commitment to grow sales and reliably supply customers. To maximize value, Imperial continued to leverage its logistics and processing capabilities to take advantage of discounted Canadian heavy crude prices,” said the company.
Rich Kruger
“Upstream gross oil-equivalent production was 336,000 barrels per day, reflecting the impact of planned turnaround activities. Recovery from the June 20 power outage at Syncrude is ongoing with partial production restored in July and return to full rates anticipated in September. The company continued to progress activities to enhance future operations, including construction to add supplemental crushing capacity at Kearl and scaled application of new solvent technology at Cold Lake.”
Net income for the quarter was $0.24 per share on a diluted basis, an increase of $0.09 per share in the second quarter of 2017.
Cash generated from operating activities was $859 million, an increase of $367 million from the second quarter of 2017.
Capital and exploration expenditures totalled $284 million, an increase of $141 million from the second quarter of 2017.
“Spending continues to be focused on sustaining capital and previously announced projects. Previous full-year guidance for capital expenditures was in the range of $1.5 billion to $1.7 billion. Spending is now expected to be at the low end of the range,” it said.
Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.
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