Imperial Oil

reported a loss of $1.15 billion for its fourth quarter as it took a $1.17-billion non-cash charge related to Canadian unconventional natural gas assets it doesn't think it will develop.

CALGARY—Sagging fuel demand due to lockdowns to deal with a second wave of the COVID-19 pandemic is again cutting into volumes and returns at refineries at Imperial Oil Ltd. after a recovery last fall, CEO Brad Corson said Tuesday.

“While the third quarter of 2020 showed significant demand improvement, that recovery was somewhat tempered in the fourth quarter,” Corson said during a webcast to discuss the Calgary-based company’s fourth-quarter results.

“Demand continues to be challenged by the ongoing pandemic and we are now seeing the impact of new community lockdowns in certain parts of Canada, particularly Ontario and Quebec.”

He said demand for gasoline in January was at about 70 to 75 per cent of normal after recovering to near normal levels in the third quarter last year, while jet fuel demand was at about 35 to 40 per cent and diesel demand remained at close to normal levels.

Despite recent increases in benchmark world oil prices and the end of Alberta’s crude oil curtailment program in December, Corson said the company has no intention of increasing its $1.2-billion capital spending plan to add growth projects in 2021.

On Tuesday, Imperial reported a net loss of $1.15 billion in the last three months of 2020 compared with a profit of $271 million in the year-earlier period. The loss was mainly due to a $1.17-billion non-cash charge related to Canadian unconventional natural gas assets it doesn’t think it will develop.