July 30 (Bloomberg) -- Petro-Canada, the formerly state- owned oil company that’s being acquired by Suncor Energy Inc., said second-quarter profit fell 95 percent as petroleum prices tumbled amid the global recession.

Net income dropped to C$77 million ($71 million), or 16 cents a share, from C$1.5 billion, or C$3.10, a year earlier, the Calgary-based company said today in a statement. Excluding such items as a drop in the value of U.S. natural-gas assets, per-share profit was 20 cents, 31 cents below the average of 11 analyst estimates compiled by Bloomberg.

U.S. oil futures averaged less than $60 a barrel during the quarter, down by more than half from a year earlier, as the recession eroded demand for diesel, gasoline and other petroleum-based fuels. Natural gas traded 67 percent lower. Petro-Canada had a C$239 million loss in its North American gas business and a C$188 million loss from oil sands.

Petro-Canada was paid C$65.37 per barrel of oil, down from C$117.22 in last year’s second quarter, and its average gas price dropped 64 percent to C$3.44 per thousand cubic feet.

Rick George, chief executive officer of Calgary-based Suncor, said last week that he expects to close the acquisition of Petro-Canada on Aug. 1.

Petro-Canada rose C$1.89 to C$44.60 on the Toronto Stock Exchange.

To contact the reporter on this story: Gene Laverty in Calgary at glaverty@bloomberg.net.

Last Updated: July 30, 2009 16:14 EDT