Imperial Oil posts 7% drop in quarterly profits

July 30 (Reuters) – Canadian company Imperial Oil Ltd (IMO.TO) on Friday announced nearly 7% decline in second quarter profits on a sequential basis, impacted by expected turnaround activity and realized margins lower downstream.

Although global demand for oil has risen slightly this year, further lockdowns and restrictions in parts of the world to deal with increasing cases of the delta variant of the coronavirus have shaken hopes.

The downstream reported net income of C $ 60 million in the second quarter, compared to net income of C $ 292 million in the first quarter, the company said.

Calgary Imperial, majority-owned by Exxon Mobil Corp (XOM.N), said its production averaged 401,000 barrels of oil equivalent per day (bepd) during the quarter ended June 30, down about 7% from the first.

Imperial Oil’s net income fell to C $ 366 million ($ 294.16 million), or 50 cents Canadian per share, in the second quarter ended June 30, from C $ 392 million, or 53 cents Canadian per share, in the previous quarter.

($ 1 = 1.2442 Canadian dollars)

Report by Sahil Shaw in Bengaluru; Editing by Krishna Chandra Eluri

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