Petro-Canada Second Quarter Profits Increased By 77 Percent

Calgary, Canada (AHN) - Increasing oil prices pumped Petro-Canada's second quarter profits by 77 percent over the same period last year.

The integrated Canadian oil company announced Friday that its April-June net income was nearly $1.5 billion or $3.10 per share, an increase from $847 million or $1.71 per share in the same quarter in 2007. Operating profit was up 43 percent to $1.15 billion.

Petro-Canada's distribution business maintained its leadership in the market especially in the urban retail market despite a weakening demand in both retail and wholesale segments due to higher gas prices.

Operating earnings from North American natural gas was up at $127 million, the oil sands at $151 million, East Coast Canada operations at $63 million and international assets at $196 million.

The Calgary-based company attributed the good performance of the quarter to its upstream business or oil production operations due to record crude prices and recovery in the natural gas segment.

The downstream business or refining operations, however, experienced a slump with earnings down by $249 million with low yields in the distribution and retailing business.