Imperial Oil reported high profits and received funding from government of Alberta
2023.01.31 15:16
Imperial Oil reported high profits and received funding from government of Alberta
By Kristina Sobol
Budrigannews.com – The head of Imperial Oil in Canada (NYSE:) on Tuesday, the federal government expressed optimism that the provincial government of Alberta would contribute additional funding for carbon capture and storage (CCS) in the province.
The remarks were made by CEO Brad Corson as Imperial reported a profit for the fourth quarter that was higher than it had been a year ago. This was made possible by higher energy costs and a lack of global supplies.
Imperial, which has its headquarters in Calgary, is a member of the Pathways Alliance, a group of six oil sands producers who plan to construct a CCS project in northern Alberta that will cost C$16.5 billion (or 12.38 billion dollars) by 2030.
Pathways asserts that additional public funds are required, while Ottawa and the Alberta government each assert that the other should contribute more, despite the fact that the federal government announced a 50% investment tax credit last year to assist in funding CCS development in Canada.
“We have always stated that we require more than 50 percent. On a call to discuss the company’s results, Corson stated, “We’re also optimistic that the province will contribute to that as well.” Pathways, the federal government, and the provincial government are all participating in a tri-party discussion.”
Corson stated that he was uncertain as to whether CCS support would be clarified in Canada’s upcoming spring budget speech or shortly thereafter.
He continued:
“I’m optimistic that if it is not in the budget speech, it will be soon thereafter that we will get not only clarity, but resolution so we can move forward on these projects.”
Net income for the fourth quarter was C$1.7 billion, or C$2.86 per share, up from C$813 million, or C$1.18 per share, in the previous year.
Despite falling from 14-year highs set in the first half of 2022, benchmark oil prices were still 9% higher year-over-year during the quarter due to Western sanctions containing Russian supply and OPEC+’s drastic production cuts. Exxon Mobil, the majority shareholder in Imperial Oil (NYSE:), earlier on Tuesday, it set a record for the Western oil industry by reporting a profit of $59 billion per year.
According to Imperial, the company’s upstream production for the fourth quarter averaged 441,000 gross oil-equivalent barrels per day (boepd), which is down from 445,000 boepd for the same period last year.
Crude capacity utilization at the producer and refiner was 111 percent, its highest level ever. This led to a total throughput of 433,000 barrels per day (bpd) for the quarter.
On the Toronto Stock Exchange, Imperial shares were up 2.4% to C$72.36.
