Imperial Oil Ltd (IMO.TO), Canada's No. 2 integrated oil producer and refiner, reported a better-than-expected quarterly profit as the company's aggressive cost-cutting measures helped cushion the impact of lower oil prices.
However, the company said some oil assets would not qualify as proved reserves at the end of 2016, if oil prices range at current levels for the rest of the year. These include all, or part of oil sands assets at Kearl and Cold Lake in Alberta, Imperial Oil said on Friday.
Brent crude has risen 35.4 per cent since the beginning of 2016, to average at about US$44 per barrel, but is still lower than last year's average of about US$55 per barrel for the same period.
To counter the lower prices, Imperial Oil, which is 69.6 per cent owned by Exxon Mobil Corp, has kept a tight leash on costs.
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