July 30 (Reuters) - Canada's Imperial Oil Ltd
reported a 7% fall in second-quarter profit on Friday, impacted
by planned turnaround activity and weaker realized margins in
its downstream refining business.
However, the company continued to post strong output from
its largest asset, the Kearl oil sands mine in northern Alberta,
which hit a new monthly production record in June.
Due to improved reliability Imperial is switching to one
turnaround a year at Kearl, canceling maintenance planned for
this fall, and raised 2021 full-year production guidance to
265,000 barrels per day (bpd) from 255,000 bpd previously.
Like its peers Imperial has been benefiting from an increase
in global oil prices, although fresh lockdowns and restrictions
in some parts of the world to deal with rising cases from the
Delta variant of the coronavirus have dented market optimism.
"We're not out of the woods yet," Imperial Chief Executive
Brad Corson told an earnings call. "We saw another quarter of
increasing commodity prices, but with continued slow recovery in
Calgary-based Imperial, which is majority-owned by Exxon
Mobil Corp, said its net income fell to C$366 million
($294.16 million), or 50 Canadian cents per share, in the second
quarter ended June 30, from C$392 million, or 53 Canadian cents
per share, in the previous quarter.
Downstream recorded net income was C$60 million in the
second quarter, compared with net income of C$292 million in the
first quarter, the company said.
Total production averaged 401,000 barrels of oil equivalent
per day in the quarter ended June 30, down about 7% from the
first due to planned oil sands turnarounds.
Imperial's shares were last down 3% at C$33.82 on the
Toronto Stock Exchange.
($1 = 1.2442 Canadian dollars)
(Reporting by Sahil Shaw in Bengaluru and Nia Williams in
Calgary; Editing by Krishna Chandra Eluri and Chris Reese)