IMPERIAL OIL <IMO.A> TO FOCUS ON HIGHER PROFIT Imperial Oil Ltd, 70 pct owned by Exxon Corp <XON>, will focus on maintaining its financial strength and improving near-term earnings performance through operating expense reductions and selective capital spending, the company said in the annual report. Imperial Oil said it expects to spend about 750 mln dlrs on capital and exploration expenditures in 1987, compared to 648 mln dlrs in 1986 and 1.16 billion dlrs in 1985. Imperial previously reported 1986 operating net profit fell to 440 mln dlrs or 2.69 dlrs share from 694 mln dlrs or 4.27 dlrs share in the prior year. Imperial Oil said the attention to earnings results from the desire to pursue longer term growth opportunities should the investment climate improve and the belief that low or volatile crude oil prices could continue during the next several years. The company also said actions initiated during 1986 to restructure and improve efficiency should continue to show benefits in 1987. During 1986, the company cut operating, administrative and marketing expenses by 91 mln dlrs and reduced the number of workers by 16 pct to 12,500. Imperial chairman Arden Haynes said in the annual report that it is too early to determine whether the recent upward movement in international oil prices will be sustained. "It is still a time for prudence and caution, and the company's actions will continue to be based on the fundamentals of market supply and demand," he said. Haynes said prospects for the company's petroleum products division are more promising than before, but are still uncertain. Imperial's 1986 petroleum earnings rose to 174 mln dlrs from 102 mln dlrs in 1985. Haynes said more satisfactory product margins on its petroleum products could result if demand recovers as it has in the United States. The company's chemicals business outlook is mixed, Haynes said. Prospects for growth in petrochemical sales is good as long as economic growth continues, but future large grain surpluses could dampen fertilizer demand and maintain pressure on prices. Imperial's chemical business earned 17 mln dlrs in 1986, compared to three mln dlrs in 1985.