OT ? - Oil Prices Boost Profits At Canada's Imperial Oil - (Go Figure) -

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Friday January 21, 12:23 pm Eastern Time

Oil prices boost profits at Canada's Imperial Oil

CALGARY, Jan 21 (Reuters) - Imperial Oil Ltd. (Toronto:IMO.TO - news), Canada's biggest oil company, said on Friday its fourth-quarter profit jumped 62 percent on the strength of rich oil prices that have lifted most of the energy industry's fortunes.

Toronto-based Imperial, majority-owned by U.S. oil major Exxon Mobil Corp. (NYSE:XOM - news), said fourth-quarter net earnings rose to C$220 million, or 51 Canadian cents a share, from year-earlier C$136 million, or 31 Canadian cents a share.

In 1998, amid depressed oil markets, Imperial's earnings were boosted by a C$74-million gain stemming from a tax refund from the Alberta government.

Fourth-quarter revenues were C$3.2 million, up 42 percent from C$2.2 billion in 1998.

Imperial is a major force in Canadian oil sands and heavy oil production, with a 25-percent interest in the Syncrude Canada Ltd. oil sands mining and synthetic crude operation and its own Cold Lake, Alberta, heavy oil development.

It is also the country's biggest refiner and marketer, operating four refineries and selling gasoline through its national chain of 2,530 Esso stations.

Oil companies worldwide are expected to report richer results en masse over the next several weeks due to oil prices, which during the fourth quarter averaged $24.60 a barrel, 90-percent higher than in the year-earlier period.

For the integrated companies -- those that produce oil and natural gas and refine and market gasoline -- results have been tempered by weak refining margins due to the high cost of crude for processing and inability to pass all of the increase on to consumers at the pumps.

``The most significant factor influencing our 1999 results was much higher prices for crude oil and natural gas, which combined with a strong operating performance to more than offset the substantial decline in industry product margins,'' Imperial Chief Executive Bob Peterson said in a statement.

The recently merged Exxon Mobil of Irving, Texas, owns 69.6 percent of Imperial. Imperial's stock has recently climbed on speculation following the Exxon Mobil merger that the U.S. parent could launch an offer to buy out the minority stake in preparation for melding it with wholly owned Mobil Oil Canada.

Imperial and Exxon Mobil have yet to announce their post-merger intentions for the Canadian operations.

Imperial shares on the Toronto Stock Exchange were up 20 Canadian cents to C$33.60 on Friday.

($1=$1.44 Canadian)

-- snooze button (alarmclock_2000@yahoo.com), January 21, 2000


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