Petro-Canada's Profit Advances 77% on Oil Prices, Production

By Ian McKinnon

July 24 (Bloomberg) -- Petro-Canada, the second-worst performer among Canada's largest oil companies, said second- quarter profit surged 77 percent on higher oil and natural-gas prices.

Net income increased to C$1.5 billion ($1.49 billion), or C$3.07 a share, from C$845 million, or C$1.70, a year earlier, the Calgary-based company said today in a Marketwire statement. The company was expected to earn C$2.32, the average of four analyst estimates compiled by Bloomberg.

Profit rose as oil advanced more than 90 percent in the quarter from a year earlier, and gas surged more than 50 percent. About 72 percent of Petro-Canada's daily output comes from oil wells.

(The company will hold a conference call for analysts and investors at 9 a.m. New York time. The call is also available on the company's Web site: http://www.petro- canada.ca/en/investor/845.aspx.)

To contact the reporter on this story: Ian McKinnon in Calgary at imckinnon1@bloomberg.net.