Imperial Oil Ltd., the Canadian affiliate of Exxon Mobil Corp., said profit in the fourth quarter sank as oil remained near 12-year lows amid rising production.
Net income within the quarter fell to $102 million, or 12 cents a share, from $671 million, or 79 cents last year, Imperial said Tuesday inside a statement. The company’s upstream operations recorded a loss of revenue within the quarter of $289 million compared with an increase of $218 million last year.
Its downstream operations, including refining and retailing operations, remained profitable but earned $352 million, down from $397 million.
Imperial’s petrochemical business earned $74 million, up from $63 million within the fourth quarter of 2014.
Imperial Oil, located in Calgary, operates three refineries, Esso-brand gas filling stations and is a producer of bitumen from oilsands mining and thermal technology in Alberta. The company is boosting output at its Kearl mine and at leases within the Cold Lake area. Revenue from Imperial refineries helped offset lower crude prices that weighed on production.
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Output within the quarter averaged 400,000 barrels each day, compared with 315,000 barrels within the year-earlier period, the company said.
West Texas Intermediate, the U.S. benchmark crude, averaged US$42.16 within the quarter, 42 per cent less than within the year-earlier period. Earlier this month, oil fell to the lowest in additional than 12 years.
Bloomberg News, with files in the Canadian Press
