Imperial Oil beats on second-quarter oil production, post higher than expected loss

Shares in Imperial Oil Ltd. are trading lower after it beat analyst expectations on oil and gas production but reported a higher-than-forecast second-quarter loss.

The Calgary-based company reported a net loss of $526 million on revenue of $3.7 billion in the three months ended June 30, down from a net profit of $1.2 billion on revenue of $9.26 billion in the year-earlier period.

Analysts had expected a $188 net loss and revenue of $4.244 billion.

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Imperial, which is 69.6 per cent owned by American giant Exxon Mobil Corp., blamed lower oil prices and refinery profit margins due to the COVID-19-related economic slump during the quarter.

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Imperial Oil shares, which have fallen 37 per cent since Dec. 31, traded down by as much as 50 cents or 2.2 per cent at $21.51 in Toronto on Friday morning.

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It reported production of 347,000 barrels of oil equivalent per day in the second quarter, down from 400,000 boe/d a year earlier, as maintenance shutdowns at its Kearl oilsands mine were extended to better control spread of the coronavirus after an outbreak there.

“The difficult market conditions in the quarter demonstrated the benefits of Imperial’s integrated business model and strong balance sheet as the company progressed key projects and maintained its dividend without increasing its debt,” said CEO Brad Corson in a statement.

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