Suncor Energy Inc, Canada's second-largest oil and gas producer, on Wednesday reported a 5% rise in second-quarter operating profit and higher upstream production.

Suncor's total production rose to 803,900 barrels of oil equivalent per day (boepd) in the quarter, which was a record. Last year, the company produced 661,770 (boepd).

Operating profit rose to C$1.25 billion ($951.44 million) or 80 Canadian cents per share, in the three months ended June 30, from C$1.19 billion, or 73 Canadian cents a share, a year earlier.

The mandatory output cuts imposed by the Alberta provincial government since Jan. 1, intended to ease congestion on export pipelines, has sharply reduced a price discount on Canadian crude compared with U.S. oil, boosting revenue for many producers.

Net profit rose to C$2.7 billion, or C$1.74 per share, from C$972 million, or 60 Canadian cents per share, a year earlier, due to a deferred income tax gain of C$1.12 billion.

($1 = 1.3138 Canadian dollars)

(Reporting by Nia Williams, Taru Jain and Shubham Kalia; Editing by Bernard Orr)