Imperial announces fourth quarter 2022 financial and operating results
Imperial reported a robust fourth-quarter 2022 net income of $1,727 million, significantly up from $813 million in Q4 2021, representing a 114% increase. Cash flow from operating activities reached $2,797 million. The company achieved record upstream production of 441,000 gross oil-equivalent barrels per day, bolstered by strong performance at Kearl, Cold Lake, and Syncrude. Imperial returned over $2.1 billion to shareholders this quarter, including a first-quarter dividend of 44 cents per share. A major $720 million renewable diesel project was also approved, furthering Imperial's commitment to achieving net zero emissions by 2050.
- Net income increased to $1,727 million from $813 million YoY.
- Total annual net income reached $7,340 million, a historical high.
- Cash flow from operating activities improved to $2,797 million.
- Record upstream production of 441,000 barrels per day in Q4 2022.
- Shareholder returns exceeded $2.1 billion in Q4 2022.
- Approval of a $720 million renewable diesel project supporting sustainability.
- Lower upstream realizations impacted Q4 earnings.
- Production slightly declined compared to Q4 2021 due to divestment of XTO Energy Canada.
-
Quarterly net income of
$1,727 million $2,797 million -
Upstream production of 441,000 gross oil-equivalent barrels per day during fourth quarter, driven by continued strength at Kearl and
Cold Lake , and higher production at Syncrude - Maintained strong refining capacity utilization, achieving best ever quarterly utilization of 101 percent
-
Returned more than
$2.1 billion -
Declared first quarter dividend of
44 cents per share -
Approved
$720 million Canada - Announcing company-wide goal to achieve net zero (Scope 1 and 2) by 2050 in operated assets
|
Fourth quarter |
|
Twelve months |
||||||||
millions of Canadian dollars, unless noted |
2022 |
|
2021 |
|
∆ |
|
2022 |
|
2021 |
|
∆ |
Net income (loss) ( |
1,727 |
|
813 |
|
+914 |
|
7,340 |
|
2,479 |
|
+4,861 |
Net income (loss) per common share, assuming dilution (dollars) |
2.86 |
|
1.18 |
|
+1.68 |
|
11.44 |
|
3.48 |
|
+7.96 |
Capital and exploration expenditures |
488 |
|
441 |
|
+47 |
|
1,490 |
|
1,140 |
|
+350 |
Imperial reported estimated net income in the fourth quarter of
“Our financial results this past year are the strongest in company history, driven by record operating performance across our assets,” said
Upstream production in the fourth quarter averaged 441,000 gross oil-equivalent barrels per day, bringing full-year production to 416,000 gross oil-equivalent barrels per day. At Kearl, quarterly total gross production averaged 284,000 barrels per day, in-line with the asset's previous record quarterly production set in the fourth quarter of 2020. Kearl's second half production was the highest in the asset's history, fully recovering from early 2022 cold weather impacts, bringing full-year production to 242,000 total gross barrels per day. At
In the Downstream, throughput in the fourth quarter averaged 433,000 barrels per day with capacity utilization of 101 percent, the highest quarterly utilization in company history, as Imperial continues to maximize production to meet Canadian demand. Full-year throughput averaged 418,000 barrels per day with capacity utilization of 98 percent, the highest full-year utilization in company history. Fourth quarter petroleum product sales averaged 487,000 barrels per day, with annual petroleum product sales averaging 475,000 barrels per day.
During the quarter, Imperial returned
In January, Imperial announced it will further help
As part of the company’s efforts to provide solutions that lower the greenhouse gas emissions intensity of our operations and provide lower life-cycle emissions products to our customers, Imperial is implementing a company-wide goal to achieve net zero emissions (Scope 1 and 2) by 2050 in its operated assets through collaboration with government and industry partners. Successful technology development and supportive fiscal and regulatory frameworks will be needed to achieve this goal. This work builds on Imperial’s previously announced net-zero goal for operated oil sands as part of the
“We continue to make progress on advancing lower-carbon solutions that support our journey to net zero, including our strategic growth investment in the Strathcona Renewable Diesel project,” said Corson. “This project will create jobs for the local economy, help our customers reduce their emissions and further enhance Imperial’s low-carbon product offering.”
Fourth quarter highlights
-
Net income of
$1,727 million $2.86 $813 million $1.18
-
Cash flows from operating activities of
$2,797 million $1,632 million $2,452 million $1,648 million
-
Capital and exploration expenditures totaled
$488 million $441 million
-
The company returned
$2,145 million $211 million $1,934 million $1,500 million
- Production averaged 441,000 gross oil-equivalent barrels per day, compared to 445,000 gross oil-equivalent barrels per day in the same period of 2021. Adjusting for the sale of XTO Energy Canada, which closed in the third quarter of 2022, production increased by 11,000 gross oil-equivalent barrels per day compared to the same period in 2021.
- Total gross bitumen production at Kearl averaged 284,000 barrels per day (201,000 barrels Imperial's share), in-line with the asset's previous record quarterly production set in the fourth quarter of 2020 and up from 270,000 barrels per day (191,000 barrels Imperial's share) in the fourth quarter of 2021.
-
Gross bitumen production at
Cold Lake averaged 141,000 barrels per day, compared to 142,000 barrels per day in the fourth quarter of 2021.
- The company's share of gross production from Syncrude averaged 87,000 barrels per day, up from 79,000 barrels per day in the fourth quarter of 2021.
- Refinery throughput averaged 433,000 barrels per day, up from 416,000 barrels per day in the fourth quarter of 2021. Capacity utilization reached 101 percent, the highest quarterly utilization in company history, up from 97 percent in the fourth quarter of 2021, as the company continues to maximize production to meet Canadian demand.
- Petroleum product sales were 487,000 barrels per day, compared to 496,000 barrels per day in the fourth quarter of 2021.
-
Chemical net income of
$41 million $64 million
-
Approved
$720 million Canada . The project, located at Imperial'sStrathcona Refinery nearEdmonton , is designed to produce more than one billion litres of renewable diesel annually, primarily from locally sourced feedstocks and could help reduce greenhouse gas emissions by about 3 million metric tonnes per year, as determined in accordance withCanada's Clean Fuel Regulations. Site preparation and initial construction work is underway with renewable diesel production expected to start in early 2025, subject to regulatory approvals.
-
Announcing company-wide goal to achieve net zero (Scope 1 and 2) by 2050 in operated assets, through collaboration with government and industry partners. This builds on Imperial’s previously announced net zero goal for operated oil sands as part of the
Pathways Alliance initiative, as well as the company’s 2030 emission intensity reduction goal for its operated oil sands.
-
The Pathways Alliance entered into a Carbon Sequestration Evaluation Agreement with the Government ofAlberta , enabling the Alliance to immediately start a detailed evaluation of its proposed geological storage hub, which would be one of the world’s largest carbon capture and storage projects.
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Recent business environment
During the COVID-19 pandemic, industry investment to maintain and increase production capacity was restrained to preserve capital, resulting in underinvestment and supply tightness as demand for petroleum and petrochemical products recovered. Across late 2021 and the first half of 2022, this dynamic, along with supply chain constraints, and a continuation of demand recovery, led to a steady increase in oil and natural gas prices and refining margins.
Demand for petroleum and petrochemical products has grown in 2022, with the company's financial results benefiting from stronger prices and margins. Commodity and product prices are expected to remain volatile given the current global economic uncertainty and geopolitical events affecting supply and demand.
The general rate of inflation in
Operating results
Fourth quarter 2022 vs. fourth quarter 2021
|
Fourth Quarter |
||
millions of Canadian dollars, unless noted |
2022 |
|
2021 |
Net income (loss) ( |
1,727 |
|
813 |
Net income (loss) per common share, assuming dilution (dollars) |
2.86 |
|
1.18 |
|
|
|
|
Upstream
Net income (loss) factor analysis
millions of Canadian dollars
2021 |
Price |
Volumes |
Royalty |
Other |
2022 |
545 |
(160) |
40 |
(50) |
156 |
531 |
Price – Lower bitumen realizations were primarily driven by the widening WTI/WCS spread. Average bitumen realizations decreased by
Volumes – Higher volumes were the result of improved plant performance at Kearl and lower unplanned downtime at Syncrude, partially offset by the absence of XTO Energy Canada production following the divestment in the third quarter of 2022.
Royalty – Higher royalties primarily driven by improved commodity prices.
Other – Favourable foreign exchange impacts of about
Marker prices and average realizations
|
Fourth Quarter |
||
Canadian dollars, unless noted |
2022 |
|
2021 |
West Texas Intermediate (US$ per barrel) |
82.58 |
|
77.04 |
Western Canada Select (US$ per barrel) |
57.00 |
|
62.49 |
WTI/WCS Spread (US$ per barrel) |
25.58 |
|
14.55 |
Bitumen (per barrel) |
59.85 |
|
65.53 |
Synthetic crude oil (per barrel) |
115.22 |
|
92.54 |
Average foreign exchange rate (US$) |
0.74 |
|
0.79 |
Production
|
Fourth Quarter |
||
thousands of barrels per day |
2022 |
|
2021 |
Kearl (Imperial's share) |
201 |
|
191 |
|
141 |
|
142 |
Syncrude (a) |
87 |
|
79 |
|
|
|
|
Kearl total gross production (thousands of barrels per day) |
284 |
|
270 |
(a) In the fourth quarter of 2022, Syncrude gross production included about 2 thousand barrels per day of bitumen and other products (2021 - 3 thousand barrels per day) that were exported to the operator's facilities using an existing interconnect pipeline. |
|||
Higher production at Kearl was primarily driven by improved plant performance and the absence of extreme cold weather in
Downstream
Net income (loss) factor analysis
millions of Canadian dollars
2021 |
Margins |
Other |
2022 |
250 |
720 |
218 |
1,188 |
Margins – Higher margins primarily reflect improved market conditions.
Other – Improved volumes of about
Refinery utilization and petroleum product sales
|
Fourth Quarter |
||
thousands of barrels per day, unless noted |
2022 |
|
2021 |
Refinery throughput |
433 |
|
416 |
Refinery capacity utilization (percent) |
101 |
|
97 |
Petroleum product sales |
487 |
|
496 |
Improved refinery throughput in the fourth quarter of 2022 was primarily driven by economic optimization across the downstream supply chain.
Chemicals
Net income (loss) factor analysis
millions of Canadian dollars
2021 |
Margins |
Other |
2022 |
64 |
(20) |
(3) |
41 |
Corporate and other
|
Fourth Quarter |
||||
millions of Canadian dollars |
2022 |
|
|
2021 |
|
Net income (loss) ( |
(33 |
) |
|
(46 |
) |
Liquidity and capital resources
|
Fourth Quarter |
||||
millions of Canadian dollars |
2022 |
|
|
2021 |
|
Cash flow generated from (used in): |
|
|
|
||
Operating activities |
2,797 |
|
|
1,632 |
|
Investing activities |
(473 |
) |
|
(399 |
) |
Financing activities |
(2,151 |
) |
|
(955 |
) |
Increase (decrease) in cash and cash equivalents |
173 |
|
|
278 |
|
|
|
|
|
||
Cash and cash equivalents at period end |
3,749 |
|
|
2,153 |
|
Cash flow generated from operating activities primarily reflects higher Upstream realizations, improved Downstream margins, and favourable working capital impacts.
Cash flow used in investing activities primarily reflects higher additions to property, plant and equipment.
Cash flow used in financing activities primarily reflects:
|
Fourth Quarter |
||
millions of Canadian dollars, unless noted |
2022 |
|
2021 |
Dividends paid |
211 |
|
188 |
Per share dividend paid (dollars) |
0.34 |
|
0.27 |
Share repurchases (a) |
1,934 |
|
761 |
Number of shares purchased (millions) (a) |
27.3 |
|
17.5 |
| (a) Share repurchases were made under the company's normal course issuer bid program, and substantial issuer bid that commenced on |
|||
The company completed share repurchases under its normal course issuer bid on
On
Full-year 2022 vs. full-year 2021
|
Twelve Months |
||
millions of Canadian dollars, unless noted |
2022 |
|
2021 |
Net income (loss) ( |
7,340 |
|
2,479 |
Net income (loss) per common share, assuming dilution (dollars) |
11.44 |
|
3.48 |
Net income (loss) excluding identified items1 |
7,132 |
|
2,479 |
|
|
|
|
Current year results include favourable identified items1 of
Upstream
Net income (loss) factor analysis
millions of Canadian dollars
2021 |
Price |
Volumes |
Royalty |
Identified Items¹ |
Other |
2022 |
1,395 |
3,140 |
(80) |
(970) |
208 |
(48) |
3,645 |
Price – Higher realizations were generally in line with increases in marker prices, driven primarily by increased demand. Average bitumen realizations increased by
Volumes – Lower volumes were primarily the result of downtime at Kearl in the first half of the year, partly offset by higher production at Syncrude and
Royalty – Higher royalties primarily driven by improved commodity prices.
Identified Items1 – Current year results include favourable identified items1 related to the company's gain on the sale of interests in XTO Energy Canada.
Other – Higher operating expenses of about
Marker prices and average realizations
|
Twelve Months |
||
Canadian dollars, unless noted |
2022 |
|
2021 |
West Texas Intermediate (US$ per barrel) |
94.36 |
|
68.05 |
Western Canada Select (US$ per barrel) |
76.28 |
|
54.96 |
WTI/WCS Spread (US$ per barrel) |
18.08 |
|
13.09 |
Bitumen (per barrel) |
84.67 |
|
57.91 |
Synthetic crude oil (per barrel) |
125.46 |
|
81.61 |
Average foreign exchange rate (US$) |
0.77 |
|
0.80 |
____________________
|
Production
|
Twelve Months |
||
thousands of barrels per day |
2022 |
|
2021 |
Kearl (Imperial's share) |
172 |
|
186 |
|
144 |
|
140 |
Syncrude (a) |
77 |
|
71 |
|
|
|
|
Kearl total gross production (thousands of barrels per day) |
242 |
|
263 |
(a) In 2022, Syncrude gross production included about 3 thousand barrels per day of bitumen and other products (2021 - 1 thousand barrels per day) that were exported to the operator's facilities using an existing interconnect pipeline. |
|||
Lower production at Kearl was primarily a result of downtime in the first half of the year.
Downstream
Net income (loss) factor analysis
millions of Canadian dollars
2021 |
Margins |
Other |
2022 |
895 |
2,350 |
377 |
3,622 |
Margins – Higher margins primarily reflect improved market conditions.
Other – Lower turnaround impacts of about
Refinery utilization and petroleum product sales
|
Twelve Months |
||
thousands of barrels per day, unless noted |
2022 |
|
2021 |
Refinery throughput |
418 |
|
379 |
Refinery capacity utilization (percent) |
98 |
|
89 |
Petroleum product sales |
475 |
|
456 |
Improved refinery throughput in 2022 was primarily driven by increased demand and reduced turnaround activity.
Improved petroleum product sales in 2022 primarily reflects increased demand.
Chemicals
Net income (loss) factor analysis
millions of Canadian dollars
2021 |
Margins |
Other |
2022 |
361 |
(110) |
(47) |
204 |
Margins – Lower margins primarily reflect weaker industry polyethylene margins.
Corporate and other
|
Twelve Months |
||||
millions of Canadian dollars |
2022 |
|
|
2021 |
|
Net income (loss) ( |
(131 |
) |
|
(172 |
) |
Liquidity and capital resources
|
Twelve Months |
||||
millions of Canadian dollars |
2022 |
|
|
2021 |
|
Cash flow generated from (used in): |
|
|
|
||
Operating activities |
10,482 |
|
|
5,476 |
|
Investing activities |
(618 |
) |
|
(1,012 |
) |
Financing activities |
(8,268 |
) |
|
(3,082 |
) |
Increase (decrease) in cash and cash equivalents |
1,596 |
|
|
1,382 |
|
Cash flow generated from operating activities primarily reflects higher Upstream realizations, improved Downstream margins, and favourable working capital impacts.
Cash flow used in investing activities primarily reflects higher additions to property, plant and equipment, which were partially offset by proceeds from the sale of interests in XTO Energy Canada.
Cash flow used in financing activities primarily reflects:
|
Twelve Months |
||
millions of Canadian dollars, unless noted |
2022 |
|
2021 |
Dividends paid |
851 |
|
706 |
Per share dividend paid (dollars) |
1.29 |
|
0.98 |
Share repurchases (a) |
6,395 |
|
2,245 |
Number of shares purchased (millions) (a) |
93.9 |
|
56.0 |
(a) Share repurchases were made under the company’s normal course issuer bid program, and substantial issuer bids that commenced on |
|||
On
On
On
During the third quarter of 2022, the company decreased its long-term debt by
Key financial and operating data follow.
Forward-looking statements
Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans are forward-looking statements. Forward-looking statements can be identified by words such as believe, anticipate, intend, propose, plan, goal, seek, project, predict, target, estimate, expect, strategy, outlook, schedule, future, continue, likely, may, should, will and similar references to future periods. Forward-looking statements in this report include, but are not limited to, references to continuing to maximize production to meet Canadian fuel demand; the company’s planned renewable diesel complex at
Forward-looking statements are based on the company's current expectations, estimates, projections and assumptions at the time the statements are made. Actual future financial and operating results, including expectations and assumptions concerning demand growth and energy source, supply and mix; production rates, growth and mix across various assets; project plans, timing, costs, technical evaluations and capacities and the company’s ability to effectively execute on these plans and operate its assets, including its investment in the renewable diesel complex at
These factors include global, regional or local changes in supply and demand for oil, natural gas, and petroleum and petrochemical products and resulting price, differential and margin impacts, including foreign government action with respect to supply levels and prices, the impact of COVID-19 on demand and the occurrence of wars; availability and allocation of capital; the receipt, in a timely manner, of regulatory and third-party approvals, including for new technologies that will help the company meet its lower emissions goals; the results of research programs and new technologies, the ability to bring new technologies to commercial scale on a cost-competitive basis, and the competitiveness of alternative energy and other emission reduction technologies; failure or delay of supportive policy and market development for the adoption of emerging lower emission energy technologies and other technologies that support emissions reductions; political or regulatory events, including changes in law or government policy, environmental regulation including climate change and greenhouse gas regulation, and actions in response to COVID-19; unanticipated technical or operational difficulties; project management and schedules and timely completion of projects; availability and performance of third-party service providers, including in light of restrictions related to COVID-19; environmental risks inherent in oil and gas exploration and production activities; management effectiveness and disaster response preparedness, including business continuity plans in response to COVID-19; operational hazards and risks; cybersecurity incidents, including increased reliance on remote working arrangements; currency exchange rates; general economic conditions; and other factors discussed in Item 1A risk factors and Item 7 management’s discussion and analysis of financial condition and results of operations of Imperial Oil Limited’s most recent annual report on Form 10-K and subsequent interim reports.
Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to
In this release all dollar amounts are expressed in Canadian dollars unless otherwise stated. This release should be read in conjunction with Imperial’s most recent Form 10-
The term “project” as used in this release can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.
Imperial’s company-wide net-zero goal (Scope 1 and 2) by 2050 is backed by a comprehensive approach centered on detailed emission-reduction roadmaps for its major operated assets. Roadmaps may be updated as needed to reflect technology, policy and other developments, including the development and acquisition of major operated assets. Actions needed to advance the company’s 2030 greenhouse gas emissions intensity reductions plans are incorporated into its medium-term business plans, which are updated annually. The reference case for planning beyond 2030 is based on the ExxonMobil’s Energy Outlook research and publication, which contains demand and supply projections based on assessment of current trends in technology, government policies, consumer preferences, geopolitics, and economic development. Reflective of the existing global policy environment, the Energy Outlook does not project the degree of required future policy and technology advancement and deployment for the world, or Imperial, to meet net-zero goals by 2050. As future policies and technology advancements emerge, they will be incorporated into the Outlook, and the company’s business plans will be updated accordingly.
Individual projects or opportunities may advance based on a number of factors, including availability of supportive policy, technology for cost-effective abatement, company planning process, and alignment with our partners and other stakeholders. The company’s plans to reduce emissions are good-faith efforts based on current relevant data and methodology, which could be changed or refined.
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Attachment I |
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|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
Fourth Quarter |
|
Twelve Months |
||||
millions of Canadian dollars, unless noted |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
Net Income (loss) ( |
|
|
|
|
|
|
|
Total revenues and other income |
14,453 |
|
12,312 |
|
59,670 |
|
37,590 |
Total expenses |
12,174 |
|
11,201 |
|
50,186 |
|
34,307 |
Income (loss) before income taxes |
2,279 |
|
1,111 |
|
9,484 |
|
3,283 |
Income taxes |
552 |
|
298 |
|
2,144 |
|
804 |
Net income (loss) |
1,727 |
|
813 |
|
7,340 |
|
2,479 |
|
|
|
|
|
|
|
|
Net income (loss) per common share (dollars) |
2.87 |
|
1.18 |
|
11.47 |
|
3.48 |
Net income (loss) per common share - assuming dilution (dollars) |
2.86 |
|
1.18 |
|
11.44 |
|
3.48 |
|
|
|
|
|
|
|
|
Other Financial Data |
|
|
|
|
|
|
|
Gain (loss) on asset sales, after tax |
— |
|
9 |
|
241 |
|
43 |
|
|
|
|
|
|
|
|
Total assets at |
|
|
|
|
43,524 |
|
40,782 |
|
|
|
|
|
|
|
|
Total debt at |
|
|
|
|
4,155 |
|
5,176 |
|
|
|
|
|
|
|
|
Shareholders' equity at |
|
|
|
|
22,413 |
|
21,735 |
|
|
|
|
|
|
|
|
Capital employed at |
|
|
|
|
26,593 |
|
26,931 |
|
|
|
|
|
|
|
|
Dividends declared on common stock |
|
|
|
|
|
|
|
Total |
266 |
|
185 |
|
932 |
|
729 |
Per common share (dollars) |
0.44 |
|
0.27 |
|
1.46 |
|
1.03 |
|
|
|
|
|
|
|
|
Millions of common shares outstanding |
|
|
|
|
|
|
|
At |
|
|
|
|
584.2 |
|
678.1 |
Average - assuming dilution |
603.0 |
|
689.5 |
|
641.5 |
|
713.2 |
|
|
|
|
|
|
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Attachment II |
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|
Fourth Quarter |
|
Twelve Months |
||||||||
millions of Canadian dollars |
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
||||
Total cash and cash equivalents at period end |
3,749 |
|
|
2,153 |
|
|
3,749 |
|
|
2,153 |
|
|
|
|
|
|
|
|
|
||||
Operating Activities |
|
|
|
|
|
|
|
||||
Net income (loss) |
1,727 |
|
|
813 |
|
|
7,340 |
|
|
2,479 |
|
Adjustments for non-cash items: |
|
|
|
|
|
|
|
||||
Depreciation and depletion |
465 |
|
|
545 |
|
|
1,897 |
|
|
1,977 |
|
(Gain) loss on asset sales |
(3 |
) |
|
(10 |
) |
|
(158 |
) |
|
(49 |
) |
Deferred income taxes and other |
281 |
|
|
75 |
|
|
(77 |
) |
|
91 |
|
Changes in operating assets and liabilities |
345 |
|
|
(16 |
) |
|
1,485 |
|
|
363 |
|
All other items - net |
(18 |
) |
|
225 |
|
|
(5 |
) |
|
615 |
|
Cash flows from (used in) operating activities |
2,797 |
|
|
1,632 |
|
|
10,482 |
|
|
5,476 |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
Investing Activities |
|
|
|
|
|
|
|
||||
Additions to property, plant and equipment |
(492 |
) |
|
(424 |
) |
|
(1,526 |
) |
|
(1,108 |
) |
Proceeds from asset sales |
18 |
|
|
24 |
|
|
904 |
|
|
81 |
|
Additional investments |
— |
|
|
— |
|
|
(6 |
) |
|
— |
|
Loans to equity companies - net |
1 |
|
|
1 |
|
|
10 |
|
|
15 |
|
Cash flows from (used in) investing activities |
(473 |
) |
|
(399 |
) |
|
(618 |
) |
|
(1,012 |
) |
|
|
|
|
|
|
|
|
||||
Cash flows from (used in) financing activities |
(2,151 |
) |
|
(955 |
) |
|
(8,268 |
) |
|
(3,082 |
) |
|
|
|
|
|
|
|
|
||||
|
|
|
|
Attachment III |
|||||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
|
Fourth Quarter |
|
Twelve Months |
||||||||
millions of Canadian dollars |
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
||||
Net income (loss) ( |
|
|
|
|
|
|
|
||||
Upstream |
531 |
|
|
545 |
|
|
3,645 |
|
|
1,395 |
|
Downstream |
1,188 |
|
|
250 |
|
|
3,622 |
|
|
895 |
|
Chemical |
41 |
|
|
64 |
|
|
204 |
|
|
361 |
|
Corporate and other |
(33 |
) |
|
(46 |
) |
|
(131 |
) |
|
(172 |
) |
Net income (loss) |
1,727 |
|
|
813 |
|
|
7,340 |
|
|
2,479 |
|
|
|
|
|
|
|
|
|
||||
Revenues and other income |
|
|
|
|
|
|
|
||||
Upstream |
4,332 |
|
|
4,252 |
|
|
19,764 |
|
|
15,831 |
|
Downstream |
15,919 |
|
|
14,453 |
|
|
64,985 |
|
|
34,786 |
|
Chemical |
422 |
|
|
449 |
|
|
1,976 |
|
|
1,758 |
|
Eliminations / Corporate and other |
(6,220 |
) |
|
(6,842 |
) |
|
(27,055 |
) |
|
(14,785 |
) |
Revenues and other income |
14,453 |
|
|
12,312 |
|
|
59,670 |
|
|
37,590 |
|
|
|
|
|
|
|
|
|
||||
Purchases of crude oil and products |
|
|
|
|
|
|
|
||||
Upstream |
1,787 |
|
|
1,712 |
|
|
7,971 |
|
|
7,492 |
|
Downstream |
13,110 |
|
|
12,980 |
|
|
55,569 |
|
|
29,505 |
|
Chemical |
260 |
|
|
273 |
|
|
1,330 |
|
|
966 |
|
Eliminations |
(6,264 |
) |
|
(6,843 |
) |
|
(27,128 |
) |
|
(14,789 |
) |
Purchases of crude oil and products |
8,893 |
|
|
8,122 |
|
|
37,742 |
|
|
23,174 |
|
|
|
|
|
|
|
|
|
||||
Production and manufacturing |
|
|
|
|
|
|
|
||||
Upstream |
1,438 |
|
|
1,266 |
|
|
5,491 |
|
|
4,661 |
|
Downstream |
447 |
|
|
406 |
|
|
1,640 |
|
|
1,445 |
|
Chemical |
80 |
|
|
65 |
|
|
273 |
|
|
210 |
|
Eliminations |
— |
|
|
— |
|
|
— |
|
|
— |
|
Production and manufacturing |
1,965 |
|
|
1,737 |
|
|
7,404 |
|
|
6,316 |
|
|
|
|
|
|
|
|
|
||||
Selling and general |
|
|
|
|
|
|
|
||||
Upstream |
— |
|
|
— |
|
|
— |
|
|
— |
|
Downstream |
179 |
|
|
156 |
|
|
653 |
|
|
572 |
|
Chemical |
23 |
|
|
22 |
|
|
85 |
|
|
90 |
|
Eliminations / Corporate and other |
55 |
|
|
37 |
|
|
144 |
|
|
122 |
|
Selling and general |
257 |
|
|
215 |
|
|
882 |
|
|
784 |
|
|
|
|
|
|
|
|
|
||||
Capital and exploration expenditures |
|
|
|
|
|
|
|
||||
Upstream |
364 |
|
|
266 |
|
|
1,128 |
|
|
632 |
|
Downstream |
94 |
|
|
168 |
|
|
295 |
|
|
476 |
|
Chemical |
5 |
|
|
2 |
|
|
10 |
|
|
8 |
|
Corporate and other |
25 |
|
|
5 |
|
|
57 |
|
|
24 |
|
Capital and exploration expenditures |
488 |
|
|
441 |
|
|
1,490 |
|
|
1,140 |
|
|
|
|
|
|
|
|
|
||||
Exploration expenses charged to Upstream income included above |
1 |
|
|
26 |
|
|
5 |
|
|
32 |
|
|
|
|
|
|
|
|
|
||||
|
|
|
Attachment IV |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating statistics |
Fourth Quarter |
|
Twelve Months |
||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
Gross crude oil and natural gas liquids (NGL) production |
|
|
|
|
|
|
|
(thousands of barrels per day) |
|
|
|
|
|
|
|
Kearl |
201 |
|
191 |
|
172 |
|
186 |
|
141 |
|
142 |
|
144 |
|
140 |
Syncrude (a) |
87 |
|
79 |
|
77 |
|
71 |
Conventional |
6 |
|
11 |
|
8 |
|
10 |
Total crude oil production |
435 |
|
423 |
|
401 |
|
407 |
NGLs available for sale |
— |
|
2 |
|
1 |
|
1 |
Total crude oil and NGL production |
435 |
|
425 |
|
402 |
|
408 |
|
|
|
|
|
|
|
|
Gross natural gas production (millions of cubic feet per day) |
37 |
|
121 |
|
85 |
|
120 |
|
|
|
|
|
|
|
|
Gross oil-equivalent production (b) |
441 |
|
445 |
|
416 |
|
428 |
(thousands of oil-equivalent barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net crude oil and NGL production (thousands of barrels per day) |
|||||||
Kearl |
184 |
|
179 |
|
157 |
|
178 |
|
105 |
|
119 |
|
106 |
|
114 |
Syncrude (a) |
77 |
|
68 |
|
63 |
|
62 |
Conventional |
6 |
|
11 |
|
8 |
|
9 |
Total crude oil production |
372 |
|
377 |
|
334 |
|
363 |
NGLs available for sale |
— |
|
1 |
|
1 |
|
1 |
Total crude oil and NGL production |
372 |
|
378 |
|
335 |
|
364 |
|
|
|
|
|
|
|
|
Net natural gas production (millions of cubic feet per day) |
37 |
|
112 |
|
83 |
|
115 |
|
|
|
|
|
|
|
|
Net oil-equivalent production (b) |
378 |
|
397 |
|
349 |
|
383 |
(thousands of oil-equivalent barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kearl blend sales (thousands of barrels per day) |
277 |
|
272 |
|
236 |
|
264 |
|
186 |
|
189 |
|
188 |
|
187 |
NGL sales (thousands of barrels per day) (c) |
— |
|
— |
|
1 |
|
— |
|
|
|
|
|
|
|
|
Average realizations (Canadian dollars) |
|
|
|
|
|
|
|
Bitumen (per barrel) |
59.85 |
|
65.53 |
|
84.67 |
|
57.91 |
Synthetic crude oil (per barrel) |
115.22 |
|
92.54 |
|
125.46 |
|
81.61 |
Conventional crude oil (per barrel) |
67.91 |
|
70.09 |
|
97.45 |
|
59.84 |
NGL (per barrel) |
— |
|
62.07 |
|
64.92 |
|
35.87 |
Natural gas (per thousand cubic feet) |
5.54 |
|
4.92 |
|
5.69 |
|
3.83 |
|
|
|
|
|
|
|
|
Refinery throughput (thousands of barrels per day) |
433 |
|
416 |
|
418 |
|
379 |
Refinery capacity utilization (percent) |
101 |
|
97 |
|
98 |
|
89 |
|
|
|
|
|
|
|
|
Petroleum product sales (thousands of barrels per day) |
|
|
|
|
|
|
|
Gasolines |
242 |
|
240 |
|
229 |
|
224 |
Heating, diesel and jet fuels |
180 |
|
180 |
|
176 |
|
160 |
Lube oils and other products |
41 |
|
44 |
|
47 |
|
45 |
Heavy fuel oils |
24 |
|
32 |
|
23 |
|
27 |
Net petroleum products sales |
487 |
|
496 |
|
475 |
|
456 |
Petrochemical sales (thousands of tonnes) |
193 |
|
194 |
|
842 |
|
831 |
(a) Syncrude gross and net production included bitumen and other products that were exported to the operator’s facilities using an existing interconnect pipeline. |
|||||||
Gross bitumen and other products production (thousands of barrels per day) |
2 |
|
3 |
|
3 |
|
1 |
Net bitumen and other products production (thousands of barrels per day) |
2 |
|
2 |
|
3 |
|
1 |
(b) Gas converted to oil-equivalent at six million cubic feet per one thousand barrels. |
|||||||
(c) NGL sales round to 0 in 2021. |
|||||||
|
|
|
Attachment V |
||
|
|
|
|
||
|
|
|
|
||
|
|
|
Net income (loss) per |
||
|
Net income (loss) ( |
|
common share - diluted (a) |
||
|
millions of Canadian dollars |
|
Canadian dollars |
||
|
|
|
|
||
2018 |
|
|
|
||
First Quarter |
516 |
|
|
0.62 |
|
Second Quarter |
196 |
|
|
0.24 |
|
Third Quarter |
749 |
|
|
0.94 |
|
Fourth Quarter |
853 |
|
|
1.08 |
|
Year |
2,314 |
|
|
2.86 |
|
|
|
|
|
||
2019 |
|
|
|
||
First Quarter |
293 |
|
|
0.38 |
|
Second Quarter |
1,212 |
|
|
1.57 |
|
Third Quarter |
424 |
|
|
0.56 |
|
Fourth Quarter |
271 |
|
|
0.36 |
|
Year |
2,200 |
|
|
2.88 |
|
|
|
|
|
||
2020 |
|
|
|
||
First Quarter |
(188 |
) |
|
(0.25 |
) |
Second Quarter |
(526 |
) |
|
(0.72 |
) |
Third Quarter |
3 |
|
|
— |
|
Fourth Quarter |
(1,146 |
) |
|
(1.56 |
) |
Year |
(1,857 |
) |
|
(2.53 |
) |
|
|
|
|
||
2021 |
|
|
|
||
First Quarter |
392 |
|
|
0.53 |
|
Second Quarter |
366 |
|
|
0.50 |
|
Third Quarter |
908 |
|
|
1.29 |
|
Fourth Quarter |
813 |
|
|
1.18 |
|
Year |
2,479 |
|
|
3.48 |
|
|
|
|
|
||
2022 |
|
|
|
||
First Quarter |
1,173 |
|
|
1.75 |
|
Second Quarter |
2,409 |
|
|
3.63 |
|
Third Quarter |
2,031 |
|
|
3.24 |
|
Fourth Quarter |
1,727 |
|
|
2.86 |
|
|
|
|
|
||
Year |
7,340 |
|
|
11.44 |
|
| (a) Computed using the average number of shares outstanding during each period. The sum of the quarters presented may not add to the year total. | |||||
Attachment VI |
Non-GAAP financial measures and other specified financial measures
Certain measures included in this document are not prescribed by
Reconciliation of these non-GAAP financial measures to the most comparable GAAP measure, and other information required by these regulations, have been provided. Non-GAAP financial measures and specified financial measures are not standardized financial measures under GAAP and do not have a standardized definition. As such, these measures may not be directly comparable to measures presented by other companies, and should not be considered a substitute for GAAP financial measures.
Cash flows from (used in) operating activities excluding working capital
Cash flows from (used in) operating activities excluding working capital is a non-GAAP financial measure that is the total cash flows from operating activities less the changes in operating assets and liabilities in the period. The most directly comparable financial measure that is disclosed in the financial statements is cash flows from (used in) operating activities within the company’s Consolidated statement of cash flows. Management believes it is useful for investors to consider these numbers in comparing the underlying performance of the company’s business across periods when there are significant period-to-period differences in the amount of changes in working capital. Changes in working capital is equal to “Changes in operating assets and liabilities” as disclosed in the company’s Consolidated statement of cash flows and in Attachment II of this document. This measure assesses the cash flows at an operating level, and as such, does not include proceeds from asset sales as defined in Cash flows from operating activities and asset sales in the Frequently Used Terms section of the company’s annual Form 10-K.
Reconciliation of cash flows from (used in) operating activities excluding working capital
|
Fourth Quarter |
|
Twelve Months |
|||||
millions of Canadian dollars |
2022 |
|
2021 |
|
|
2022 |
|
2021 |
From Imperial's Consolidated statement of cash flows |
|
|
|
|
|
|
|
|
Cash flows from (used in) operating activities |
2,797 |
|
1,632 |
|
|
10,482 |
|
5,476 |
|
|
|
|
|
|
|
|
|
Less changes in working capital |
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities |
345 |
|
(16 |
) |
|
1,485 |
|
363 |
Cash flows from (used in) operating activities excl. working capital |
2,452 |
|
1,648 |
|
|
8,997 |
|
5,113 |
Free cash flow
Free cash flow is a non-GAAP financial measure that is cash flows from operating activities less additions to property, plant and equipment and equity company investments plus proceeds from asset sales. The most directly comparable financial measure that is disclosed in the financial statements is cash flows from (used in) operating activities within the company’s Consolidated statement of cash flows. This measure is used to evaluate cash available for financing activities (including but not limited to dividends and share purchases) after investment in the business.
Reconciliation of free cash flow
|
Fourth Quarter |
|
Twelve Months |
||||||||
millions of Canadian dollars |
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
From Imperial's Consolidated statement of cash flows |
|
|
|
|
|
|
|
||||
Cash flows from (used in) operating activities |
2,797 |
|
|
1,632 |
|
|
10,482 |
|
|
5,476 |
|
|
|
|
|
|
|
|
|
||||
Cash flows from (used in) investing activities |
|
|
|
|
|
|
|
||||
Additions to property, plant and equipment |
(492 |
) |
|
(424 |
) |
|
(1,526 |
) |
|
(1,108 |
) |
Proceeds from asset sales |
18 |
|
|
24 |
|
|
904 |
|
|
81 |
|
Additional investments |
— |
|
|
— |
|
|
(6 |
) |
|
— |
|
Loans to equity companies - net |
1 |
|
|
1 |
|
|
10 |
|
|
15 |
|
Free cash flow |
2,324 |
|
|
1,233 |
|
|
9,864 |
|
|
4,464 |
|
Net income (loss) excluding identified items
Net income (loss) excluding identified items is a non-GAAP financial measure that is total net income (loss) excluding individually significant non-operational events with an absolute corporate total earnings impact of at least
Reconciliation of net income (loss) excluding identified items
|
Fourth Quarter |
|
Twelve Months |
||||
millions of Canadian dollars |
2022 |
|
2021 |
|
2022 |
|
2021 |
From Imperial's Consolidated statement of income |
|
|
|
|
|
|
|
Net income (loss) ( |
1,727 |
|
813 |
|
7,340 |
|
2,479 |
|
|
|
|
|
|
|
|
Less identified items included in Net income (loss) |
|
|
|
|
|
|
|
Gain/(loss) on sale of assets |
— |
|
— |
|
208 |
|
— |
Subtotal of identified items |
— |
|
— |
|
208 |
|
— |
|
|
|
|
|
|
|
|
Net income (loss) excluding identified items |
1,727 |
|
813 |
|
7,132 |
|
2,479 |
Cash operating costs (cash costs)
Cash operating costs is a non-GAAP financial measure that consists of total expenses, less costs that are non-cash in nature, including, Purchases of crude oil and products, Federal excise taxes and fuel charge, Depreciation and depletion, Non-service pension and postretirement benefit, and Financing. The components of cash operating costs include (1) Production and manufacturing, (2) Selling and general and (3) Exploration, from the company’s Consolidated statement of income, and as disclosed in Attachment III of this document. The sum of these income statement lines serve as an indication of cash operating costs and does not reflect the total cash expenditures of the company. The most directly comparable financial measure that is disclosed in the financial statements is total expenses within the company’s Consolidated statement of income. This measure is useful for investors to understand the company’s efforts to optimize cash through disciplined expense management.
Reconciliation of cash operating costs
|
Fourth Quarter |
|
Twelve Months |
||||
millions of Canadian dollars |
2022 |
|
2021 |
|
2022 |
|
2021 |
From Imperial's Consolidated statement of Income |
|
|
|
|
|
|
|
Total expenses |
12,174 |
|
11,201 |
|
50,186 |
|
34,307 |
Less: |
|
|
|
|
|
|
|
Purchases of crude oil and products |
8,893 |
|
8,122 |
|
37,742 |
|
23,174 |
Federal excise taxes and fuel charge |
563 |
|
524 |
|
2,179 |
|
1,928 |
Depreciation and depletion |
465 |
|
545 |
|
1,897 |
|
1,977 |
Non-service pension and postretirement benefit |
4 |
|
10 |
|
17 |
|
42 |
Financing |
26 |
|
22 |
|
60 |
|
54 |
Total cash operating costs |
2,223 |
|
1,978 |
|
8,291 |
|
7,132 |
Components of cash operating costs
|
Fourth Quarter |
|
Twelve Months |
||||
millions of Canadian dollars |
2022 |
|
2021 |
|
2022 |
|
2021 |
From Imperial's Consolidated statement of Income |
|
|
|
|
|
|
|
Production and manufacturing |
1,965 |
|
1,737 |
|
7,404 |
|
6,316 |
Selling and general |
257 |
|
215 |
|
882 |
|
784 |
Exploration |
1 |
|
26 |
|
5 |
|
32 |
Cash operating costs |
2,223 |
|
1,978 |
|
8,291 |
|
7,132 |
Segment contributions to total cash operating costs
|
Fourth Quarter |
|
Twelve Months |
||||
millions of Canadian dollars |
2022 |
|
2021 |
|
2022 |
|
2021 |
Upstream |
1,439 |
|
1,292 |
|
5,496 |
|
4,693 |
Downstream |
626 |
|
562 |
|
2,293 |
|
2,017 |
Chemicals |
103 |
|
87 |
|
358 |
|
300 |
Corporate / Eliminations |
55 |
|
37 |
|
144 |
|
122 |
Cash operating costs |
2,223 |
|
1,978 |
|
8,291 |
|
7,132 |
Unit cash operating cost (unit cash costs)
Unit cash operating costs is a non-GAAP ratio. Unit cash operating costs (unit cash costs) is calculated by dividing cash operating costs by total gross oil-equivalent production, and is calculated for the Upstream segment, as well as the major Upstream assets. Cash operating costs is a non-GAAP financial measure and is disclosed and reconciled above. This measure is useful for investors to understand the expense management efforts of the company’s major assets as a component of the overall Upstream segment. Unit cash operating cost, as used by management, does not directly align with the definition of “Average unit production costs” as set out by the
Components of unit cash operating cost
|
Fourth Quarter |
||||||||||||||
|
2022 |
|
2021 |
||||||||||||
millions of Canadian dollars |
Upstream (a) |
|
Kearl |
|
|
|
Syncrude |
|
Upstream (a) |
|
Kearl |
|
|
|
Syncrude |
Production and manufacturing |
1,438 |
|
673 |
|
327 |
|
393 |
|
1,266 |
|
561 |
|
315 |
|
333 |
Selling and general |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
Exploration |
1 |
|
— |
|
— |
|
— |
|
26 |
|
— |
|
— |
|
— |
Cash operating costs |
1,439 |
|
673 |
|
327 |
|
393 |
|
1,292 |
|
561 |
|
315 |
|
333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross oil-equivalent production |
441 |
|
201 |
|
141 |
|
87 |
|
445 |
|
191 |
|
142 |
|
79 |
(thousands of barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit cash operating cost ($/oeb) |
35.47 |
|
36.39 |
|
25.21 |
|
49.10 |
|
31.56 |
|
31.93 |
|
24.11 |
|
45.82 |
USD converted at the quarterly average forex |
26.25 |
|
26.93 |
|
18.66 |
|
36.33 |
|
24.93 |
|
25.22 |
|
19.05 |
|
36.20 |
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months |
||||||||||||||
|
2022 |
|
2021 |
||||||||||||
millions of Canadian dollars |
Upstream (a) |
|
Kearl |
|
|
|
Syncrude |
|
Upstream (a) |
|
Kearl |
|
|
|
Syncrude |
Production and manufacturing |
5,491 |
|
2,353 |
|
1,344 |
|
1,563 |
|
4,661 |
|
1,902 |
|
1,117 |
|
1,388 |
Selling and general |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
Exploration |
5 |
|
— |
|
— |
|
— |
|
32 |
|
— |
|
— |
|
— |
Cash operating costs |
5,496 |
|
2,353 |
|
1,344 |
|
1,563 |
|
4,693 |
|
1,902 |
|
1,117 |
|
1,388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross oil-equivalent production |
416 |
|
172 |
|
144 |
|
77 |
|
428 |
|
186 |
|
140 |
|
71 |
(thousands of barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit cash operating cost ($/oeb) |
36.20 |
|
37.48 |
|
25.57 |
|
55.61 |
|
30.04 |
|
28.02 |
|
21.86 |
|
53.56 |
USD converted at the YTD average forex |
27.87 |
|
28.86 |
|
19.69 |
|
42.82 |
|
24.03 |
|
22.42 |
|
17.49 |
|
42.85 |
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Upstream includes Imperial's share of Kearl, |
|||||||||||||||
After more than a century, Imperial continues to be an industry leader in applying technology and innovation to responsibly develop Canada’s energy resources. As Canada’s largest petroleum refiner, a major producer of crude oil, a key petrochemical producer and a leading fuels marketer from coast to coast, our company remains committed to high standards across all areas of our business.
Source: Imperial
View source version on businesswire.com: https://www.businesswire.com/news/home/20230131005153/en/
Investor relations
(587) 476-4743
Media relations
(587) 476-7010
Source: Imperial
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