Imperial Oil profits dive

Photo: Contributed

Imperial Oil's second-quarter profit plunged 90 per cent from last year to $120 million from $1.2 billion as the oil producer dealt with the sharp drop in oil prices.

Imperial, one of Canada's largest oil extraction and refining companies, said the profit amounted to 14 cents a share, down from $1.45 per share the second period last year.

The price of oil has dropped by more than half since July 2014 as supply has outpaced demand from a sluggish global economy.

The company said it took a $320-million charge in the quarter from an increase in Alberta's corporate income tax and earned $478 million from the sale of some upstream production assets.

Gross production of oil actually increased in the quarter to 344,000 barrels per day from 287,000 barrels per day last year, reaching the highest production level in nearly eight years.

Imperial processed fewer barrels of oil per day at its refineries compared with the second quarter of 2014, an average of 373,000 barrels per day compared to 418,000 per day last year, as it put its Sarnia, Ont., plant on a turnaround.

Second-quarter capital and exploration spending amounted to $819 million, down from nearly $1.4 billion in the same period last year.