Jan 30 (Reuters) - Canadian oil producer Imperial Oil posted a fall in fourth-quarter profit on Friday, hurt by lower production and a drop in crude prices.
Benchmark Brent crude prices averaged at $63.13 a barrel during the October-December quarter, 11.3% lower than a year earlier, as market expectations of oversupply grew amid higher tariffs and increased OPEC+ output.
Imperial's upstream production for the quarter was 444,000 gross barrels of oil equivalent per day (boepd), lower than 460,000 gross boepd a year earlier.
The company's total throughput volumes, or the amount of crude processed, fell to 408,000 barrels per day during the fourth quarter from 411,000 bpd a year ago.
Late last year, Imperial had said it planned to increase capital spending and upstream production in 2026 as it doubles down on higher-return oil sands projects, aiming to lower costs and generate stronger cash flow.
"Looking ahead, we are confident in our plans to profitably grow volumes, lower unit cash costs, and progress our restructuring, while maintaining our focus on safety and operational excellence," CEO John Whelan said.
The company declared a quarterly dividend increase to 87 cents per share from 72 cents and said it returned $2.07 billion to shareholders through dividend payments and share repurchases.
Imperial Oil is majority owned by U.S. oil and gas major Exxon Mobil.
The Calgary, Alberta-based company said its net income fell to C$492 million ($364.31 million), or C$1.00 per share, in the quarter ended December 31 from C$1.23 billion, or C$2.37 per share, last year.
($1 = 1.3505 Canadian dollars)
Reporting by Pooja Menon in Bengaluru; Editing by Anil D'Silva
Source: Reuters