Imperial Oil Ltd. shares rallied 1.57% to C$33.73 Thursday, on what proved to be an all-around positive trading session for the Canadian market, with the S&P/TSX Composite Index GSPTSE rising 0.23% to 20,375.48. Imperial Oil Ltd. closed C$8.63 short of its 52-week high (C$42.36), which the company reached on June 10th.
Imperial Oil Ltd. trading volume of 526,600 shares remained below its 50-day average volume of 1.7 M. The firm reported a 7% fall in second-quarter profit on Friday, impacted by planned turnaround activity and weaker realized margins in its downstream refining business.However, the company continued to post the strong output from its largest asset, the Kearl oil sands mine in northern Alberta, which hit a new monthly production record in June. Imperial is switching to one turnaround a year at Kearl, cancelling maintenance planned for this fall, and raised 2021 full-year production guidance to 265,000 barrels per day (BPD) from 255,000 BPD previously.
Imperial has been benefiting from an increase in global oil prices, although fresh lockdowns and restrictions in some parts of the world to deal with rising cases from the Delta variant of the coronavirus have dented market optimism. Downstream recorded net income was C$60 million in the second quarter, compared with net income of C$292 million in the first quarter, the company said.
Total production averaged 401,000 barrels of oil equivalent per day in the quarter ended June 30, down about 7% from the first due to planned oil sands turnarounds. Imperial Oil Ltd. was last down 3% at C$33.82 on the Toronto Stock Exchange.
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