Achi news desk-
Imperial Oil Ltd pushed its Kearl oil sands project to record production for its first quarter as it continues to increase output ahead of the opening of the Trans Mountain pipeline expansion.
The company was producing an average of 277,000 barrels per day at the project, up about seven percent from the same quarter last year.
“I’m very pleased to report that we’ve maintained the strong operating momentum from the past few quarters,” chief executive Brad Corson told analysts on a conference call discussing the company’s latest results on Friday.
Overall, Imperial’s production rose a more modest two percent from last year to an average of 421,000 barrels of oil equivalent per day in its latest quarter as Cold Lake and Syncrude saw production decline. Output was also off its record production equivalent of 452,000 barrels a day last quarter, largely due to seasonal factors, Corson said.
Imperial, majority-owned by US-based Exxon Mobil, has been working for some time to improve production and lower costs at Kearl, which is north of Fort McMurray, Alta.
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A major piece of that work was Imperial’s multi-year effort to convert its entire fleet of heavy haul mining trucks at Kearl to fully autonomous operation. The company announced the completion of the venture last fall.
The increase comes as the scheduled May 1 commercial start-up date for the Trans Mountain expansion approaches, helping to offset the decline in Canadian crude, Corson said.
The narrowing difference between the US benchmark WTI crude price and Canada’s WCS helped offset a softening in oil prices, he said.
“A key factor is the start of the TMX approach, which will provide significant additional capacity to get out of the western Canada basin,” Corson said.
The production and pricing changes resulted in a first quarter profit of $1.20 billion, down from its best ever first quarter last year which had a profit of $1.25 billion.
The company said earnings were $2.23 per diluted share for the quarter ended March 31, up from $2.13 per diluted share in its first quarter last year when it had more shares outstanding.
Revenue and other income totaled $12.28 billion, up from $12.12 billion in its first quarter in 2023.
Refinery throughput for the quarter averaged 407,000 barrels per day, down from 417,000 barrels per day in the first quarter of 2023, while refinery capacity utilization was 94 percent, down from 96 percent.
& copy 2024 The Canadian Press
