August 05, 2024 [Reuters]- Canada’s Imperial Oil reported a 68% jump in second-quarter profit on Friday, as the integrated oil firm was helped by higher crude prices and production.

Extension of a production cut by OPEC+, forecast strong travel demand and hopes of interest rate cuts by the U.S. Federal Reserve helped lift crude prices nearly 7% in the April-June quarter compared to last year.

Upstream production rose 11.3% to 404,000 gross barrels of oil equivalent per day (boepd), Imperial’s highest second-quarter production in more than 30 years after adjusting for the divestment of XTO Energy in 2022, the company said.

Last month Imperial temporarily reduced staffing at its oil sands operations due to the threat of wildfires in northern Alberta, but CEO Brad Corson said there had been no impact on production.

“We hope that will continue through the rest of the summer season. What I can’t predict is whether there’ll be future wildfires and where those will occur,” Corson said on an earnings call.

While Imperial’s production was slightly above expectations, its free cash flow came in slightly below analysts’ forecasts, Eight Capital Research analyst Phil Skolnick wrote in a note.

Imperial shares were last down 3% on the Toronto Stock Exchange at C$93.14 amid a broad sell-off in energy stocks.

Separately, Imperial’s majority shareholder and oil and gas major beat Wall Street expectations for second-quarter profit earlier in the day, helped by an increase in oil production.

Calgary-based Imperial said its net profit rose to C$1.13 billion ($814.30 million), or C$2.11 per share, in the quarter ended June 30, from C$675 million, or C$1.15 per share, last year.