Canadian energy company Imperial Oil IMO-T beat profit estimates for third quarter on Friday, as stronger refining margins drove a sharp increase in downstream earnings, offsetting lower oil production.
The Calgary-based company reported net income rose to $2.45-billion, or $5.11 per share, for the quarter ended Sept. 30, beating analysts’ average estimate of $4.70 per share, according to data compiled by LSEG.
The Iran war has disrupted energy exports through the Strait of Hormuz, while attacks on Middle Eastern and Russian energy infrastructure have further tightened global fuel supplies.
The disruptions have pushed up prices of diesel, gasoline and jet fuel relative to crude oil, widening refining margins.
Imperial Oil’s third-quarter downstream earnings climbed to $1.56-billion from $444-million a year earlier, reflecting improved refining margins and a more favorable product mix.