Imperial Oil Ltd. is reporting second-quarter results that beat analyst expectations on the back of strong oilsands output and an allowance for lower future Alberta corporate taxes.
The Calgary-based company, which is about 70 per cent owned by Texas-based Exxon Mobil Corp., reports net income in the three months ended June 30 of $1.2 billion on revenue of $9.26 billion, up from $196 million on $9.54 billion in the same period of 2018.
The results include a $662-million provision for Alberta’s staged corporate tax rate reduction from 12 to eight per cent by 2022.
Analysts had estimated $555 million or 79 cents per share in net income on $9.012 billion in revenue, according to financial markets data firm Refinitiv.
Imperial’s production averaged 400,000 barrels of oil equivalent per day, up from 336,000 barrels per day in the second quarter of 2018, due to strong output at its Kearl oilsands mine and from its 25 per cent interest in the Syncrude oilsands mine consortium.
Crude-by-rail shipments averaged 64,000 barrels per day in the second quarter, up from 36,000 barrels per day in the first quarter.
“In a quarter when the upstream completed significant (maintenance) turnaround activities, the company still achieved its highest second-quarter production in over 25 years,” said CEO Rich Kruger in a statement.
“The ongoing focus on improving reliability at Kearl is working, with the operation recording four of its 10 best-ever production days following completion of the turnaround in June.”