Imperial Oil posts record earnings on higher prices across the board

Allen Baker, Petroleum News contributing writer

Imperial Oil Ltd. soared to record earnings for the first quarter of this year, showing profits of C$538 million, nearly five times the C$110 million the Toronto-based company netted in the same quarter a year ago.

Foreign exchange gains on the company’s U.S. dollar debt also helped results.

The big factor was prices.

Natural gas averaged C$8.12 per thousand cubic feet, a gain of 150 percent over the C$3.26 figure a year ago.

Conventional crude brought C$47.86 a barrel, up 57 percent from $30.44 a barrel in 2002’s first quarter.

The Cold Lake bitumen price also rose about 50 percent.

Overall gas production slipped 13 percent in the quarter to 487 million cubic feet a day, from 557 million cubic feet daily a year ago.

Liquids production showed a slight rise to 240,000 barrels daily from 238,000 a year ago, but that number also would have slipped but for increased bitumen production from Cold Lake due to an expansion there.

The Cold Lake production now accounts for nearly half of the liquids total.

Crude, natural gas liquids and Imperial’s share of Syncrude production all declined.

Last month, the company said, it began geotechnical surveys and soil analysis near Inuvik to determine the best route for the Mackenzie Valley pipeline.

Imperial is a big player in the Mackenzie Gas Project.

Earnings from petroleum product sales were C$139 million, compared to a loss of C$37 million as refining and marketing margins improved.

Total petroleum product sales also rose 9 percent to 86.4 million liters a day.

Revenues rose 57 percent to C$5.45 billion from C$3.48 billion a year ago.

Imperial Oil is 69 percent owned by Exxon Mobil.