Canadian energy company Imperial Oil beat profit estimates for the third quarter on Friday, as stronger refining margins drove a sharp increase in downstream earnings, offsetting lower oil production.
The Calgary, Alberta-based company reported net income of C$5.11 per share for the quarter ended September 30, beating analysts’ average estimate of C$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 C$1.56 billion ($1.12 billion) from C$444 million a year earlier, reflecting improved refining margins and a more favorable product mix.
(Reporting by Khusbu Jena in Bengaluru; Editing by Tasim Zahid)