CALGARY–Petro-Canada reported a first-quarter profit of $1.1 billion, up from $590 million a year ago, as higher operating earnings offset losses on foreign currency translation of long-term debt.

The company's earnings amounted to $2.22 per share, and compared with$1.19 per share in the same period of 2007.

Operating earnings totalled $899 million, or $1.86 per share, compared with $580 million, $1.17 per share, in the same period last year.

Cash flow from operating activities before changes in non-cash working capital was $1.8 billion, up from $1.2 billion last year.

During the quarter, the Calgary-based company produced 427,000 barrels of oil equivalent per day, up from 405,000 in the same quarter last year.

Petro-Canada said the increase in net earnings stemmed from higher operating earnings "combined with the benefit associated with settling the Buzzard derivative contracts in the fourth quarter of 2007."

They were partially offset by losses on foreign currency translation of long-term debt and lower gains on asset sales.

The company also reported a quarterly dividend of 13 cents per share, payable on July 1, same as last year.

Petro-Canada is one of Canada's largest oil and gas companies, operating in both the upstream and downstream sectors of the industry in Canada and internationally.