UPDATE 2-Imperial profit falls on lower output, pipe woes

* Q3 EPS C$0.49 vs estimated C$0.51

* Oil output down 8 pct, gas down 2 pct

* Shares down C$0.05 at C$39.17
(Adds details on Kearl project, downstream results, stock
price)

CALGARY, Alberta, Nov 1 (BestGrowthStock) – Imperial Oil Ltd
(IMO.TO: ) said on Monday its third-quarter profit (Read more your timing to make a profit.) fell 24
percent due to lower oil sands output, the rising Canadian
dollar and Enbridge Inc’s (ENB.TO: ) pipeline outages.

The company, Canada’s No. 2 oil producer and refiner, also
said it will spend more than the C$8 billion ($7.84 billion)
budgeted for the first phase of its Kearl oil sands project as
it rejigs plans, but did not say by how much.

Imperial earned C$418 million ($410 million), or 49
Canadian cents a share, down from C$547 million, or 64 Canadian
cents a share, in the year-before quarter.

Analysts, on average, had expected earnings of 51 Canadian
cents a share, according to Thomson Reuters I/B/E/S.

Results included a C$10 million gain on asset sales.

Revenues were C$5.85 billion, up 5 percent from C$5.56
billion in the year-earlier quarter.

Imperial, known for its dominant position in oil sands and
heavy crude, and its national chain of Esso gas stations, said
its earnings were cut by C$90 million due to lower output at
the Syncrude Canada Ltd oil sands venture, which had a longer
than expected maintenance outage.

The shutdowns of Enbridge’s 6A and 6B oil pipelines in the
U.S. Midwest reduced income by C$60 million, and the impact
will carry into the fourth quarter, it said. Those outages
backed crude up into Alberta and led to hefty discounts in the
price of Canadian oil in August and September.

Meanwhile, the strong Canadian dollar compared with the
U.S. greenback cut profit by C$70 million, it said.

The results were cushioned somewhat by Imperial’s refining
and marketing as well as chemicals divisions.

Net income at refining and marketing rose 11 percent to
C$69 million on improved refinery operations and sales.
Chemicals earnings rose 21 percent to C$23 million.

Imperial said it has altered plans to build Kearl, a joint
venture with Exxon Mobil Corp (XOM.N: ), in three 110,000 bpd
phases, with total production of 330,000 bpd by 2020.

The initial stage, to be completed by late 2012, remains
mostly unchanged, with the exception of adding equipment that
will be used in future expansions, spokesman Pius Rolheiser
said. Later phases will include a stage that boosts operations
to increase the final capacity of the project to 345,000 bpd,
he said.

The company is also waiting for Canada’s energy regulator
to give the go-ahead on the C$16.2 billion Mackenzie Valley gas
pipeline. Such a decision is expected as early as the end of
this month.

Imperial said oil production in the quarter averaged
234,000 barrels a day, down 8 percent from a year earlier.
Natural gas output fell 2 percent to 284 million cubic feet a
day.

Imperial shares were down 5 Canadian cents at C$39.17 on
the Toronto Stock Exchange on Monday.

Exxon Mobil owns 69.6 percent of Imperial.

($1=$1.02 Canadian)
(Reporting by Jeffrey Jones; editing by Peter Galloway)

UPDATE 2-Imperial profit falls on lower output, pipe woes