Imperial announces second quarter 2024 financial and operating results
Imperial announced its Q2 2024 financial results, highlighting a net income of CAD $1,133 million, up from CAD $675 million in Q2 2023. The company reported a cash flow from operating activities of CAD $1,629 million, a significant increase compared to CAD $885 million in the same period last year. Upstream production averaged 404,000 barrels per day, the highest in over 30 years. Key production sites, Kearl and Cold Lake, achieved notable outputs.
Downstream operations saw a refinery capacity utilization of 89%, with successful turnarounds at Strathcona and Sarnia refineries. The company returned CAD $321 million to shareholders through dividends and renewed its share repurchase program, aiming to buy back up to 5% of outstanding shares. Imperial declared a quarterly dividend of 60 cents per share.
Capital and exploration expenditures totaled CAD $462 million, slightly down from CAD $493 million in Q2 2023.
Imperial ha annunciato i risultati finanziari del secondo trimestre 2024, evidenziando un utile netto di 1.133 milioni di CAD, in aumento rispetto ai 675 milioni di CAD del Q2 2023. L'azienda ha riportato un flusso di cassa dalle attività operative di 1.629 milioni di CAD, un incremento significativo rispetto agli 885 milioni di CAD nello stesso periodo dell'anno scorso. La produzione upstream ha raggiunto una media di 404.000 barili al giorno, la più alta degli ultimi 30 anni. I siti produttivi chiave, Kearl e Cold Lake, hanno raggiunto output notevoli.
Le operazioni downstream hanno mostrato un utilizzo della capacità di raffinazione dell'89%, con turnarounds riusciti presso le raffinerie Strathcona e Sarnia. L'azienda ha restituito 321 milioni di CAD agli azionisti sotto forma di dividendi e ha rinnovato il suo programma di riacquisto di azioni, puntando a riacquistare fino al 5% delle azioni in circolazione. Imperial ha dichiarato un dividendo trimestrale di 60 centesimi per azione.
Le spese in conto capitale e per esplorazioni sono ammontate a 462 milioni di CAD, leggermente in calo rispetto ai 493 milioni di CAD nel Q2 2023.
Imperial anunció sus resultados financieros del segundo trimestre de 2024, destacando un ingreso neto de 1.133 millones de CAD, un aumento desde los 675 millones de CAD en el Q2 2023. La empresa reportó un flujo de efectivo de actividades operativas de 1.629 millones de CAD, un aumento significativo en comparación con los 885 millones de CAD en el mismo período del año pasado. La producción upstream promedió 404,000 barriles por día, la más alta en más de 30 años. Los sitios de producción clave, Kearl y Cold Lake, lograron salidas notables.
Las operaciones downstream vieron una utilización de capacidad de refinación del 89%, con turnarounds exitosos en las refinerías de Strathcona y Sarnia. La empresa devolvió 321 millones de CAD a los accionistas mediante dividendos y renovó su programa de recompra de acciones, con el objetivo de recomprar hasta el 5% de las acciones en circulación. Imperial declaró un dividendo trimestral de 60 centavos por acción.
Los gastos de capital y exploración totalizaron 462 millones de CAD, ligeramente por debajo de los 493 millones de CAD en el Q2 2023.
임페리얼은 2024년 2분기 재무 결과를 발표하며 1,133백만 CAD의 순이익을 기록했다고 밝혔습니다. 이는 2023년 2분기의 675백만 CAD에서 증가한 수치입니다. 회사는 운영 활동으로부터의 현금 흐름을 1,629백만 CAD로 보고했으며, 이는 지난해 같은 기간의 885백만 CAD에 비해 크게 증가한 것입니다. 업스트림 생산은 하루 평균 404,000배럴로, 30년 이상 중 가장 높은 수치를 기록했습니다. 주요 생산 사이트인 Kearl과 Cold Lake은 주목할 만한 생산량을 달성했습니다.
다운스트림 운영에서는 정유소 가동률이 89%에 달했으며, Strathcona 및 Sarnia 정유소에서 성공적인 검수가 있었습니다. 회사는 배당금을 통해 주주들에게 321백만 CAD를 환원했으며, 발행 주식의 최대 5%를 재매입하기 위한 주식 매입 프로그램을 갱신했습니다. 임페리얼은 주당 60센트의 분기 배당금을 선언했습니다.
자본 및 탐사 비용은 총 462백만 CAD로, 2023년 2분기의 493백만 CAD에서 약간 감소했습니다.
Imperial a annoncé ses résultats financiers pour le deuxième trimestre 2024, mettant en avant un revenu net de 1.133 millions CAD, en hausse par rapport à 675 millions CAD au Q2 2023. La société a rapporté un flux de trésorerie provenant des activités opérationnelles de 1.629 millions CAD, une augmentation significative par rapport à 885 millions CAD au même période l'année dernière. La production en amont a atteint une moyenne de 404 000 barils par jour, le plus haut niveau depuis plus de 30 ans. Les sites de production clés, Kearl et Cold Lake, ont réalisé des rendements notables.
Les opérations en aval ont affiché un taux d'utilisation de la capacité de raffinage de 89 %, avec des arrêts réussis dans les raffineries de Strathcona et Sarnia. La société a restitué 321 millions CAD aux actionnaires sous forme de dividendes et a renouvelé son programme de rachat d'actions, visant à racheter jusqu'à 5 % des actions en circulation. Imperial a déclaré un dividende trimestriel de 60 cents par action.
Les dépenses d'investissement et d'exploration se sont élevées à 462 millions CAD, légèrement en baisse par rapport à 493 millions CAD au Q2 2023.
Imperial hat seine finanziellen Ergebnisse für das zweite Quartal 2024 bekannt gegeben und dabei einen Nettoertrag von 1.133 Millionen CAD hervorgehoben, ein Anstieg von 675 Millionen CAD im Q2 2023. Das Unternehmen berichtete von einem Cashflow aus der operativen Tätigkeit von 1.629 Millionen CAD, was einen erheblichen Anstieg im Vergleich zu 885 Millionen CAD im gleichen Zeitraum des Vorjahres darstellt. Die Upstream-Produktion belief sich auf durchschnittlich 404.000 Barrel pro Tag, die höchste Zahl seit über 30 Jahren. Die Schlüsselproduktionsstätten, Kearl und Cold Lake, erzielten bemerkenswerte Outputs.
Die Downstream-Aktivitäten verzeichneten eine Raffineriekapazitätsauslastung von 89%, mit erfolgreichen Instandhaltungen in den Raffinerien Strathcona und Sarnia. Das Unternehmen hat 321 Millionen CAD an die Aktionäre in Form von Dividenden zurückgegeben und sein Aktienrückkaufprogramm erneuert, mit dem Ziel, bis zu 5% der ausstehenden Aktien zurückzukaufen. Imperial erklärte eine vierteljährliche Dividende von 60 Cent pro Aktie.
Die Investitions- und Erkundungsausgaben beliefen sich auf insgesamt 462 Millionen CAD, etwas niedriger als 493 Millionen CAD im Q2 2023.
- Net income of CAD $1,133 million in Q2 2024, up from CAD $675 million in Q2 2023.
- Cash flow from operating activities increased to CAD $1,629 million, up from CAD $885 million in Q2 2023.
- Highest Q2 upstream production in over 30 years, averaging 404,000 barrels per day.
- Renewed share repurchase program to buy back up to 5% of outstanding shares.
- Declared a quarterly dividend of 60 cents per share.
- Lower refinery margins impacting net income compared to the previous quarter.
- Capital and exploration expenditures decreased to CAD $462 million, down from CAD $493 million in Q2 2023.
Insights
Imperial Oil's Q2 2024 results demonstrate strong operational performance across its upstream and downstream segments, despite challenging market conditions. The company reported
Key highlights include:
- Record upstream production of 404,000 barrels per day, the highest Q2 production in over 30 years (adjusted for divestments)
- Strong performance at Kearl with 255,000 barrels per day of total gross production
- Successful completion of major turnarounds at Strathcona and Sarnia refineries
- Cash flow from operating activities of
$1,629 million , up from$885 million in Q2 2023
The company's focus on operational efficiency and strategic investments is paying off, particularly in the upstream segment. The successful ramp-up of the Grand Rapids Phase 1 project at Cold Lake, which reached 8,000 barrels per day in June, showcases Imperial's commitment to leveraging technology for profitable growth while reducing environmental impact.
Imperial's strong cash flow generation allowed it to maintain its dividend at
Looking ahead, with major turnarounds completed, Imperial is well-positioned for strong production in the second half of 2024. However, investors should monitor refining margins, which have weakened due to increased supply and changing trade flows. The company's progress on its renewable diesel facility at Strathcona refinery also bears watching, as it represents a significant step towards diversification and lower-emission fuel options.
Imperial Oil's Q2 2024 results reflect the company's resilience in a challenging energy market. The upstream segment's performance was particularly impressive, with total production reaching 404,000 barrels per day, a 30-year high for Q2 when adjusted for divestments. This underscores Imperial's operational excellence and the success of its growth strategies.
The Kearl oil sands mining operation continues to be a standout performer, matching its Q2 production record at 255,000 barrels per day. This asset's consistent improvement demonstrates Imperial's ability to optimize large-scale operations and drive efficiency gains.
The introduction of solvent-assisted SAGD technology at the Grand Rapids Phase 1 project is a game-changer. This innovative approach not only promises increased production but also lower unit costs and reduced greenhouse gas intensity. It's a clear example of how technology can address both economic and environmental challenges in the oil sands sector.
In the downstream segment, Imperial successfully navigated major turnarounds at two refineries while maintaining a solid
The company's focus on renewable diesel, with the ongoing project at Strathcona refinery, positions Imperial well for the energy transition. With an expected capacity of over one billion liters annually, this project could significantly boost Imperial's green credentials and open new market opportunities.
However, the narrowing WTI/WCS spread and weakening refining margins highlight the volatile nature of the energy market. Imperial's integrated model provides some buffer against these fluctuations, but the company will need to continue focusing on cost management and operational efficiency to maintain its strong performance in the face of market uncertainties.
-
Quarterly net income of
$1,133 million -
Cash flows from operating activities of
$1,629 million $1,508 million - Upstream production of 404,000 gross oil-equivalent barrels per day, highest second quarter in over 30 years when adjusted for divestment of XTO Energy Canada
- Matched highest-ever second quarter production at Kearl of 255,000 total gross oil-equivalent barrels per day (181,000 barrels Imperial’s share)
-
Strong performance at
Cold Lake with production of 147,000 barrels per day and first oil atGrand Rapids -
Achieved refinery capacity utilization of 89 percent while successfully completing turnarounds at
Strathcona andSarnia - Renewed annual normal course issuer bid to repurchase up to 5 percent of outstanding common shares; plan to accelerate purchases to complete the program prior to year end
-
Declared quarterly dividend of
60 cents per share
|
Second quarter |
Six months |
||||
millions of Canadian dollars, unless noted |
2024 |
2023 |
∆ |
2024 |
2023 |
∆ |
Net income (loss) ( |
1,133 |
675 |
+458 |
2,328 |
1,923 |
+405 |
Net income (loss) per common share, assuming dilution (dollars) |
2.11 |
1.15 |
+0.96 |
4.34 |
3.29 |
+1.05 |
Capital and exploration expenditures |
462 |
493 |
(31) |
958 |
922 |
+36 |
Imperial reported estimated net income in the second quarter of
"Imperial’s second quarter results are underpinned by strong operations across our businesses, including the safe and successful completion of several major turnarounds," said Brad Corson, chairman, president and chief executive officer. "With the majority of upstream turnaround activity behind us, we are well positioned for strong production in the second half of the year."
Upstream production in the second quarter averaged 404,000 gross oil-equivalent barrels per day, the highest second quarter production in over 30 years when adjusting for the divestment of XTO Energy Canada. At Kearl, quarterly total gross production averaged 255,000 barrels per day (181,000 barrels Imperial's share), matching the asset's second quarter production record and achieving record first half production. Kearl also successfully completed its annual turnaround in record time during the quarter. At
"Grand Rapids Phase 1 is the first solvent assisted SAGD operation in the industry, highlighting Imperial's continued focus on leveraging technology to profitably grow production while reducing greenhouse gas intensity," said Corson.
In the Downstream, major turnarounds were successfully completed at the
Imperial returned
"Consistent with our continued commitment to return surplus cash to shareholders, I am pleased to announce our plan to accelerate our NCIB share repurchases with a target of completing the program prior to year end," said Corson.
Second quarter highlights
-
Net income of
$1,133 million $2.11 $675 million $1.15 -
Cash flows from operating activities of
$1,629 million $885 million $1,508 million $1,136 million -
Capital and exploration expenditures totaled
$462 million $493 million -
The company returned
$321 million - Renewed share repurchase program, enabling the purchase of up to five percent of common shares outstanding, a maximum of 26,791,840 shares, during the 12-month period commencing June 29, 2024. Consistent with the company's commitment to return surplus cash to shareholders, Imperial plans to accelerate its share purchases under the NCIB program and anticipates repurchasing all remaining allowable shares prior to the end of 2024. Purchase plans may be modified at any time without prior notice.
- Production averaged 404,000 gross oil-equivalent barrels per day, the highest second quarter production in over 30 years when adjusting for the divestment of XTO Energy Canada, up from 363,000 gross oil-equivalent barrels per day in the same period of 2023.
- Total gross bitumen production at Kearl averaged 255,000 barrels per day (181,000 barrels Imperial's share), matching the second quarter production record and achieving record first half production. This is up from 217,000 barrels per day (154,000 barrels Imperial's share) in the second quarter of 2023.
-
Gross bitumen production at
Cold Lake averaged 147,000 barrels per day, up from 132,000 barrels per day in the second quarter of 2023, primarily driven by production and steam cycle timing, and Grand Rapids Phase 1 (GRP1) production. - Achieved first oil at Grand Rapids Phase 1, consistent with plan and continuing to ramp up production. GRP1 is the first solvent-assisted SAGD project in the industry and will lower unit cash cost1 and reduce greenhouse gas intensity compared to legacy processes. This project is expected to achieve 15,000 gross barrels per day of production at full rates.
- Commenced module fabrication on Leming SAGD redevelopment project, work on site continues to progress. The project is on track for a 2025 start up with peak production anticipated to be around 9,000 gross barrels per day.
- The company's share of gross production from Syncrude averaged 66,000 barrels per day, consistent with 66,000 barrels per day in the second quarter of 2023. Syncrude completed its annual coker turnaround in late May.
-
Refinery throughput averaged 387,000 barrels per day, compared to 388,000 barrels per day in the second quarter of 2023. Capacity utilization was 89 percent, compared to 90 percent in the second quarter of 2023. This reflects the strong operations and high reliability this quarter, including the successful turnarounds at
Sarnia andStrathcona . - Petroleum product sales were 470,000 barrels per day, compared to 475,000 barrels per day in the second quarter of 2023.
- Successfully completed proactive replacement of a section from the Winnipeg Products Pipeline, restoring pipeline fuel supply in the region.
-
Continued to advance work on
Canada's largest renewable diesel facility at theStrathcona refinery, with the main reactor now installed. When completed, the project is expected to have a capacity of more than one billion litres of renewable diesel annually. -
Further developed network of renewable diesel blending and offloading distribution terminals. Completion of the
Calgary terminal further expands our capability to supply lower emission fuel options to our customers. -
Chemical net income of
$65 million $71 million - Pathways Alliance continued to file regulatory applications with the Alberta Energy Regulator for the proposed carbon capture and storage project, while progressing front end engineering and design on the proposed transportation pipeline as well as drilling plans for additional evaluation wells. Completion of the project is contingent on fiscal support and regulatory approvals.
Recent business environment
In the first half of 2024, the price of crude oil remained relatively flat compared to the fourth quarter of 2023. The Canadian WTI/WCS spread continued to narrow in the second quarter, primarily due to additional pipeline capacity coming online. Refining margins fell as increasing supply more than met growing demand and geopolitical trade-flow disruptions lessened.
Operating results
Second quarter 2024 vs. second quarter 2023
|
Second Quarter |
|
millions of Canadian dollars, unless noted |
2024 |
2023 |
Net income (loss) ( |
1,133 |
675 |
Net income (loss) per common share, assuming dilution (dollars) |
2.11 |
1.15 |
Upstream
Net income (loss) factor analysis
millions of Canadian dollars
2023 |
Price |
Volumes |
Royalty |
Other |
2024 |
384 |
300 |
280 |
(180) |
15 |
799 |
Price – Average bitumen realizations increased by
Volumes – Higher volumes were primarily driven by higher mine fleet productivity and optimized turnaround at Kearl, production and steam cycle timing and GRP1 production at
Royalty – Higher royalties were primarily driven by improved commodity prices.
Marker prices and average realizations
|
Second Quarter |
|
Canadian dollars, unless noted |
2024 |
2023 |
West Texas Intermediate (US$ per barrel) |
80.63 |
73.56 |
Western Canada Select (US$ per barrel) |
67.03 |
58.49 |
WTI/WCS Spread (US$ per barrel) |
13.60 |
15.07 |
Bitumen (per barrel) |
83.02 |
68.64 |
Synthetic crude oil (per barrel) |
111.56 |
100.92 |
Average foreign exchange rate (US$) |
0.73 |
0.74 |
Production
|
Second Quarter |
|
thousands of barrels per day |
2024 |
2023 |
Kearl (Imperial's share) |
181 |
154 |
|
147 |
132 |
Syncrude (a) |
66 |
66 |
|
|
|
Kearl total gross production (thousands of barrels per day) |
255 |
217 |
| (a) | In the second quarter of 2024, Syncrude gross production included about 2 thousand barrels per day of bitumen and other products (2023 - 0 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 higher mine fleet productivity and optimized turnaround.
Higher production at
Downstream
Net income (loss) factor analysis
millions of Canadian dollars
2023 |
Margins |
Other |
2024 |
250 |
(90) |
134 |
294 |
Margins – Lower margins primarily reflect weaker market conditions.
Other – Primarily due to lower turnaround impacts of about
Refinery utilization and petroleum product sales
|
Second Quarter |
|
thousands of barrels per day, unless noted |
2024 |
2023 |
Refinery throughput |
387 |
388 |
Refinery capacity utilization (percent) |
89 |
90 |
Petroleum product sales |
470 |
475 |
Refinery throughput in the second quarter of 2024 reflects the impact of turnaround activities at the
Chemicals
Net income (loss) factor analysis
millions of Canadian dollars
2023 |
Margins |
Other |
2024 |
71 |
(10) |
4 |
65 |
Corporate and other
|
Second Quarter |
|
millions of Canadian dollars |
2024 |
2023 |
Net income (loss) ( |
(25) |
(30) |
Liquidity and capital resources
|
Second Quarter |
|
millions of Canadian dollars |
2024 |
2023 |
Cash flows from (used in): |
|
|
Operating activities |
1,629 |
885 |
Investing activities |
(456) |
(489) |
Financing activities |
(329) |
(263) |
Increase (decrease) in cash and cash equivalents |
844 |
133 |
|
|
|
Cash and cash equivalents at period end |
2,020 |
2,376 |
Cash flows from operating activities primarily reflect higher Upstream realizations and volumes, and favourable working capital impacts.
Cash flows used in investing activities primarily reflect lower additions to property, plant and equipment.
Cash flows used in financing activities primarily reflect:
|
Second Quarter |
|
millions of Canadian dollars, unless noted |
2024 |
2023 |
Dividends paid |
321 |
257 |
Per share dividend paid (dollars) |
0.60 |
0.44 |
Share repurchases (a) |
— |
— |
Number of shares purchased (millions) (a) |
— |
— |
| (a) | The company did not purchase any shares during the second quarter of 2024 and 2023. |
On June 24, 2024, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid and will continue its existing share purchase program. Shareholders may obtain a copy of the Notice of Intention to Make a Normal Course Issuer Bid approved by the TSX without charge by contacting the company. The program enables the company to purchase up to a maximum of 26,791,840 common shares during the period June 29, 2024 to June 28, 2025. This maximum includes shares purchased under the normal course issuer bid from Exxon Mobil Corporation. As in the past, Exxon Mobil Corporation has advised the company that it intends to participate to maintain its ownership percentage at approximately 69.6 percent. The program will end should the company purchase the maximum allowable number of shares or otherwise on June 28, 2025. Imperial plans to accelerate its share purchases under the normal course issuer bid program, and anticipates repurchasing all remaining allowable shares prior to year end. Purchase plans may be modified at any time without prior notice.
Six months 2024 vs. six months 2023
|
Six Months |
|
millions of Canadian dollars, unless noted |
2024 |
2023 |
Net income (loss) ( |
2,328 |
1,923 |
Net income (loss) per common share, assuming dilution (dollars) |
4.34 |
3.29 |
Upstream
Net income (loss) factor analysis
millions of Canadian dollars
2023 |
Price |
Volumes |
Royalty |
Other |
2024 |
714 |
630 |
310 |
(300) |
3 |
1,357 |
Price – Average bitumen realizations increased by
Volumes – Higher volumes were primarily driven by higher mine fleet productivity and optimized turnaround at Kearl, production and steam cycle timing and GRP1 production at
Royalty – Higher royalties were primarily driven by improved commodity prices.
Other – Includes lower operating expenses of about
Marker prices and average realizations
|
Six Months |
|
Canadian dollars, unless noted |
2024 |
2023 |
West Texas Intermediate (US$ per barrel) |
78.77 |
74.77 |
Western Canada Select (US$ per barrel) |
62.34 |
54.92 |
WTI/WCS Spread (US$ per barrel) |
16.43 |
19.85 |
Bitumen (per barrel) |
74.70 |
58.94 |
Synthetic crude oil (per barrel) |
102.10 |
101.73 |
Average foreign exchange rate (US$) |
0.74 |
0.74 |
Production
|
Six Months |
|
thousands of barrels per day |
2024 |
2023 |
Kearl (Imperial's share) |
189 |
169 |
|
144 |
137 |
Syncrude (a) |
70 |
71 |
|
|
|
Kearl total gross production (thousands of barrels per day) |
266 |
238 |
| (a) | In 2024, Syncrude gross production included about 1 thousand barrels per day of bitumen and other products (2023 - 1 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 higher mine fleet productivity and optimized turnaround.
Downstream
Net income (loss) factor analysis
millions of Canadian dollars
2023 |
Margins |
Other |
2024 |
1,120 |
(280) |
85 |
925 |
Margins – Lower margins primarily reflect weaker market conditions.
Other – Primarily due to lower turnaround impacts of about
Refinery utilization and petroleum product sales
|
Six Months |
|
thousands of barrels per day, unless noted |
2024 |
2023 |
Refinery throughput |
397 |
403 |
Refinery capacity utilization (percent) |
92 |
93 |
Petroleum product sales |
460 |
465 |
Refinery throughput in 2024 reflects the impact of turnaround activities at the
Chemicals
Net income (loss) factor analysis
millions of Canadian dollars
2023 |
Margins |
Other |
2024 |
124 |
(10) |
8 |
122 |
Corporate and other
|
Six Months |
|
millions of Canadian dollars |
2024 |
2023 |
Net income (loss) ( |
(76) |
(35) |
Liquidity and capital resources
|
Six Months |
|
millions of Canadian dollars |
2024 |
2023 |
Cash flows from (used in): |
|
|
Operating activities |
2,705 |
64 |
Investing activities |
(937) |
(903) |
Financing activities |
(612) |
(534) |
Increase (decrease) in cash and cash equivalents |
1,156 |
(1,373) |
Cash flows from operating activities primarily reflect the absence of unfavourable working capital impacts mainly related to an income tax catch-up payment of
Cash flows used in investing activities primarily reflect higher additions to property, plant and equipment.
Cash flows used in financing activities primarily reflect:
|
Six Months |
|
millions of Canadian dollars, unless noted |
2024 |
2023 |
Dividends paid |
599 |
523 |
Per share dividend paid (dollars) |
1.10 |
0.88 |
Share repurchases (a) |
— |
— |
Number of shares purchased (millions) (a) |
— |
— |
| (a) | The company did not purchase any shares during the six months ended June 30, 2024 and 2023. |
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. Similarly, discussion of roadmaps or future plans related to carbon capture, transportation and storage, biofuel, hydrogen, and other future plans to reduce emissions and emission intensity of the company, its affiliates and third parties are dependent on future market factors, such as continued technological progress, policy support and timely rule-making and permitting, and represent forward-looking statements. Forward-looking statements can be identified by words such as believe, anticipate, intend, propose, plan, goal, seek, estimate, expect, 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 the company’s commitment to return surplus cash to shareholders and shareholder returns programs, including purchases under the normal course issuer bid and plans to accelerate purchases to complete the program prior to year end; the impact and timing of the Cold Lake Grand Rapids Phase 1 project, including expected production, cost reductions and reductions to greenhouse gas emissions intensity, and the timing of production ramp-up for such project; the company’s
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 future energy demand, 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 the Cold Lake Grand Rapids Phase 1 project, the
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, and the occurrence of wars; political or regulatory events, including changes in law or government policy, applicable royalty rates, and tax laws; third-party opposition to company and service provider operations, projects and infrastructure; 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; failure, delay or uncertainty regarding supportive policy and market development for the adoption of emerging lower emission energy technologies and other technologies that support emissions reductions; environmental regulation, including climate change and greenhouse gas regulation and changes to such regulation; unanticipated technical or operational difficulties; project management and schedules and timely completion of projects; availability and performance of third-party service providers; environmental risks inherent in oil and gas exploration and production activities; management effectiveness and disaster response preparedness; operational hazards and risks; cybersecurity incidents; currency exchange rates; general economic conditions, including inflation and the occurrence and duration of economic recessions or downturns; 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’s most recent annual report on Form 10-K.
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 Imperial. Imperial’s actual results may differ materially from those expressed or implied by its forward-looking statements and readers are cautioned not to place undue reliance on them. Imperial undertakes no obligation to update any forward-looking statements contained herein, except as required by applicable law.
Forward-looking and other statements regarding Imperial's environmental, social and other sustainability efforts and aspirations are not an indication that these statements are material to investors or require disclosure in the company's filings with securities regulators. In addition, historical, current and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future, including future rule-making. 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.
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-K. Note that numbers may not add due to rounding.
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.
|
Attachment I |
|||
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
Six Months |
||
millions of Canadian dollars, unless noted |
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
Net income (loss) ( |
|
|
|
|
Total revenues and other income |
13,383 |
11,819 |
25,666 |
23,940 |
Total expenses |
11,894 |
10,935 |
22,605 |
21,411 |
Income (loss) before income taxes |
1,489 |
884 |
3,061 |
2,529 |
Income taxes |
356 |
209 |
733 |
606 |
Net income (loss) |
1,133 |
675 |
2,328 |
1,923 |
|
|
|
|
|
Net income (loss) per common share (dollars) |
2.11 |
1.16 |
4.34 |
3.29 |
Net income (loss) per common share - assuming dilution (dollars) |
2.11 |
1.15 |
4.34 |
3.29 |
|
|
|
|
|
Other financial data |
|
|
|
|
Gain (loss) on asset sales, after tax |
1 |
10 |
3 |
18 |
|
|
|
|
|
Total assets at June 30 |
|
|
44,135 |
42,126 |
|
|
|
|
|
Total debt at June 30 |
|
|
4,119 |
4,144 |
|
|
|
|
|
Shareholders' equity at June 30 |
|
|
23,936 |
23,828 |
|
|
|
|
|
Dividends declared on common stock |
|
|
|
|
Total |
322 |
292 |
643 |
549 |
Per common share (dollars) |
0.60 |
0.50 |
1.20 |
0.94 |
|
|
|
|
|
Millions of common shares outstanding |
|
|
|
|
At June 30 |
|
|
535.8 |
584.2 |
Average - assuming dilution |
537.0 |
585.3 |
537.0 |
585.3 |
|
|
|
|
|
|
Attachment II |
|||
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
Six Months |
||
millions of Canadian dollars |
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
Total cash and cash equivalents at period end |
2,020 |
2,376 |
2,020 |
2,376 |
|
|
|
|
|
Operating activities |
|
|
|
|
Net income (loss) |
1,133 |
675 |
2,328 |
1,923 |
Adjustments for non-cash items: |
|
|
|
|
Depreciation and depletion |
456 |
453 |
946 |
943 |
(Gain) loss on asset sales |
(1) |
(13) |
(3) |
(22) |
Deferred income taxes and other |
(75) |
(15) |
(239) |
(71) |
Changes in operating assets and liabilities |
121 |
(251) |
(324) |
(2,626) |
All other items - net |
(5) |
36 |
(3) |
(83) |
Cash flows from (used in) operating activities |
1,629 |
885 |
2,705 |
64 |
|
|
|
|
|
Investing activities |
|
|
|
|
Additions to property, plant and equipment |
(461) |
(499) |
(958) |
(928) |
Proceeds from asset sales |
3 |
9 |
7 |
23 |
Loans to equity companies - net |
2 |
1 |
14 |
2 |
Cash flows from (used in) investing activities |
(456) |
(489) |
(937) |
(903) |
Cash flows from (used in) financing activities |
(329) |
(263) |
(612) |
(534) |
|
Attachment III |
|||
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
Six Months |
||
millions of Canadian dollars |
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
Net income (loss) ( |
|
|
|
|
Upstream |
799 |
384 |
1,357 |
714 |
Downstream |
294 |
250 |
925 |
1,120 |
Chemical |
65 |
71 |
122 |
124 |
Corporate and other |
(25) |
(30) |
(76) |
(35) |
Net income (loss) |
1,133 |
675 |
2,328 |
1,923 |
|
|
|
|
|
Revenues and other income |
|
|
|
|
Upstream |
4,552 |
3,590 |
8,720 |
7,290 |
Downstream |
14,634 |
12,735 |
28,273 |
26,217 |
Chemical |
418 |
437 |
837 |
870 |
Eliminations / Corporate and other |
(6,221) |
(4,943) |
(12,164) |
(10,437) |
Revenues and other income |
13,383 |
11,819 |
25,666 |
23,940 |
|
|
|
|
|
Purchases of crude oil and products |
|
|
|
|
Upstream |
1,900 |
1,432 |
3,713 |
2,975 |
Downstream |
12,944 |
11,133 |
24,535 |
22,329 |
Chemical |
256 |
263 |
516 |
537 |
Eliminations / Corporate and other |
(6,244) |
(4,972) |
(12,202) |
(10,507) |
Purchases of crude oil and products |
8,856 |
7,856 |
16,562 |
15,334 |
|
|
|
|
|
Production and manufacturing |
|
|
|
|
Upstream |
1,203 |
1,256 |
2,391 |
2,543 |
Downstream |
435 |
475 |
856 |
886 |
Chemical |
48 |
54 |
101 |
112 |
Eliminations / Corporate and other |
3 |
— |
5 |
— |
Production and manufacturing |
1,689 |
1,785 |
3,353 |
3,541 |
|
|
|
|
|
Selling and general |
|
|
|
|
Upstream |
— |
— |
— |
— |
Downstream |
171 |
160 |
333 |
317 |
Chemical |
23 |
22 |
49 |
48 |
Eliminations / Corporate and other |
27 |
24 |
85 |
27 |
Selling and general |
221 |
206 |
467 |
392 |
|
|
|
|
|
Capital and exploration expenditures |
|
|
|
|
Upstream |
267 |
303 |
557 |
624 |
Downstream |
149 |
152 |
302 |
226 |
Chemical |
3 |
5 |
8 |
9 |
Corporate and other |
43 |
33 |
91 |
63 |
Capital and exploration expenditures |
462 |
493 |
958 |
922 |
Exploration expenses charged to Upstream income included above |
1 |
1 |
2 |
2 |
|
Attachment IV |
||||
|
|
|
|
|
|
|
|
|
|
|
|
| Operating statistics | Second Quarter |
Six Months |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
|
|
|
|
|
| Gross crude oil production (thousands of barrels per day) |
|
|
|
|
|
| Kearl | 181 |
154 |
189 |
169 |
|
147 |
132 |
144 |
137 |
||
| Syncrude (a) | 66 |
66 |
70 |
71 |
|
| Conventional | 5 |
5 |
5 |
5 |
|
| Total crude oil production | 399 |
357 |
408 |
382 |
|
|
|
|
|
|
|
| Gross natural gas production (millions of cubic feet per day) | 30 |
35 |
30 |
36 |
|
|
|
|
|
|
|
| Gross oil-equivalent production (b) | 404 |
363 |
413 |
388 |
|
| (thousands of oil-equivalent barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
| Net crude oil production (thousands of barrels per day) |
|
|
|
|
|
| Kearl | 167 |
144 |
175 |
157 |
|
109 |
105 |
109 |
112 |
||
| Syncrude (a) | 54 |
61 |
57 |
65 |
|
| Conventional | 5 |
5 |
5 |
5 |
|
| Total crude oil production | 335 |
315 |
346 |
339 |
|
|
|
|
|
|
|
| Net natural gas production (millions of cubic feet per day) | 29 |
32 |
30 |
36 |
|
|
|
|
|
|
|
| Net oil-equivalent production (b) | 340 |
320 |
351 |
345 |
|
| (thousands of oil-equivalent barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
| Kearl blend sales (thousands of barrels per day) | 249 |
211 |
263 |
236 |
|
196 |
174 |
193 |
182 |
||
|
|
|
|
|
|
| Average realizations (Canadian dollars) |
|
|
|
|
|
| Bitumen (per barrel) | 83.02 |
68.64 |
74.70 |
58.94 |
|
| Synthetic crude oil (per barrel) | 111.56 |
100.92 |
102.10 |
101.73 |
|
| Conventional crude oil (per barrel) | 64.55 |
64.33 |
58.59 |
64.65 |
|
| Natural gas (per thousand cubic feet) | 0.77 |
2.36 |
0.49 |
2.73 |
|
|
|
|
|
|
|
| Refinery throughput (thousands of barrels per day) | 387 |
388 |
397 |
403 |
|
| Refinery capacity utilization (percent) | 89 |
90 |
92 |
93 |
|
|
|
|
|
|
|
| Petroleum product sales (thousands of barrels per day) |
|
|
|
|
|
| Gasolines | 227 |
231 |
221 |
222 |
|
| Heating, diesel and jet fuels | 174 |
176 |
172 |
180 |
|
| Lube oils and other products | 44 |
42 |
43 |
42 |
|
| Heavy fuel oils | 25 |
26 |
24 |
21 |
|
| Net petroleum products sales | 470 |
475 |
460 |
465 |
|
| Petrochemical sales (thousands of tonnes) | 219 |
220 |
434 |
438 |
|
(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 |
— |
1 |
1 |
|
Net bitumen and other products production (thousands of barrels per day) |
2 |
— |
1 |
1 |
(b) |
Gas converted to oil-equivalent at six million cubic feet per one thousand barrels. |
||||
Attachment V |
||
|
|
|
|
|
|
|
|
Net income (loss) per |
|
Net income (loss) ( |
common share - diluted (a) |
|
millions of Canadian dollars |
Canadian dollars |
|
|
|
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 |
|
|
|
2023 |
|
|
First Quarter |
1,248 |
2.13 |
Second Quarter |
675 |
1.15 |
Third Quarter |
1,601 |
2.76 |
Fourth Quarter |
1,365 |
2.47 |
Year |
4,889 |
8.49 |
|
|
|
2024 |
|
|
First Quarter |
1,195 |
2.23 |
Second Quarter |
1,133 |
2.11 |
Year |
2,328 |
4.34 |
| (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
|
Second Quarter |
Six Months |
||
millions of Canadian dollars |
2024 |
2023 |
2024 |
2023 |
From Imperial's Consolidated statement of cash flows |
|
|
|
|
Cash flows from (used in) operating activities |
1,629 |
885 |
2,705 |
64 |
|
|
|
|
|
Less changes in working capital |
|
|
|
|
Changes in operating assets and liabilities |
121 |
(251) |
(324) |
(2,626) |
Cash flows from (used in) operating activities excl. working capital |
1,508 |
1,136 |
3,029 |
2,690 |
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
|
Second Quarter |
Six Months |
||
millions of Canadian dollars |
2024 |
2023 |
2024 |
2023 |
From Imperial's Consolidated statement of cash flows |
|
|
|
|
Cash flows from (used in) operating activities |
1,629 |
885 |
2,705 |
64 |
|
|
|
|
|
Cash flows from (used in) investing activities |
|
|
|
|
Additions to property, plant and equipment |
(461) |
(499) |
(958) |
(928) |
Proceeds from asset sales |
3 |
9 |
7 |
23 |
Loans to equity companies - net |
2 |
1 |
14 |
2 |
Free cash flow |
1,173 |
396 |
1,768 |
(839) |
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
There were no identified items in the second quarter or year-to-date 2024 and 2023 periods.
Cash operating costs (cash costs)
Cash operating costs is a non-GAAP financial measure that consists of total expenses, less purchases of crude oil and products, federal excise taxes and fuel charge, financing, and costs that are non-cash in nature, including depreciation and depletion, and non-service pension and postretirement benefit. The components of cash operating costs include "Production and manufacturing", "Selling and general" and "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 serves 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
|
Second Quarter |
Six Months |
||
millions of Canadian dollars |
2024 |
2023 |
2024 |
2023 |
From Imperial's Consolidated statement of income |
|
|
|
|
Total expenses |
11,894 |
10,935 |
22,605 |
21,411 |
Less: |
|
|
|
|
Purchases of crude oil and products |
8,856 |
7,856 |
16,562 |
15,334 |
Federal excise taxes and fuel charge |
656 |
598 |
1,247 |
1,127 |
Depreciation and depletion |
456 |
453 |
946 |
943 |
Non-service pension and postretirement benefit |
1 |
20 |
2 |
40 |
Financing |
14 |
16 |
26 |
32 |
Cash operating costs |
1,911 |
1,992 |
3,822 |
3,935 |
Components of cash operating costs
|
Second Quarter |
Six Months |
||
millions of Canadian dollars |
2024 |
2023 |
2024 |
2023 |
From Imperial's Consolidated statement of income |
|
|
|
|
Production and manufacturing |
1,689 |
1,785 |
3,353 |
3,541 |
Selling and general |
221 |
206 |
467 |
392 |
Exploration |
1 |
1 |
2 |
2 |
Cash operating costs |
1,911 |
1,992 |
3,822 |
3,935 |
Segment contributions to total cash operating costs
|
Second Quarter |
Six Months |
||
millions of Canadian dollars |
2024 |
2023 |
2024 |
2023 |
Upstream |
1,204 |
1,257 |
2,393 |
2,545 |
Downstream |
606 |
635 |
1,189 |
1,203 |
Chemicals |
71 |
76 |
150 |
160 |
Eliminations / Corporate and other |
30 |
24 |
90 |
27 |
Cash operating costs |
1,911 |
1,992 |
3,822 |
3,935 |
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
|
Second Quarter |
|||||||
|
2024 |
2023 |
||||||
millions of Canadian dollars |
Upstream (a) |
Kearl |
Cold
|
Syncrude |
Upstream (a) |
Kearl |
Cold
|
Syncrude |
Production and manufacturing |
1,203 |
499 |
262 |
400 |
1,256 |
526 |
282 |
412 |
Selling and general |
— |
— |
— |
— |
— |
— |
— |
— |
Exploration |
1 |
— |
— |
— |
1 |
— |
— |
— |
Cash operating costs |
1,204 |
499 |
262 |
400 |
1,257 |
526 |
282 |
412 |
|
|
|
|
|
|
|
|
|
Gross oil-equivalent production |
404 |
181 |
147 |
66 |
363 |
154 |
132 |
66 |
(thousands of barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit cash operating cost ($/oeb) |
32.75 |
30.30 |
19.59 |
66.60 |
38.05 |
37.53 |
23.48 |
68.60 |
USD converted at the quarterly average forex |
23.91 |
22.12 |
14.30 |
48.62 |
28.16 |
27.77 |
17.38 |
50.76 |
2024 |
||||||||
Components of unit cash operating cost
|
Six Months |
|||||||
|
2024 |
2023 |
||||||
millions of Canadian dollars |
Upstream (a) |
Kearl |
Cold
|
Syncrude |
Upstream (a) |
Kearl |
Cold
|
Syncrude |
Production and manufacturing |
2,391 |
997 |
571 |
742 |
2,543 |
1,084 |
584 |
811 |
Selling and general |
— |
— |
— |
— |
— |
— |
— |
— |
Exploration |
2 |
— |
— |
— |
2 |
— |
— |
— |
Cash operating costs |
2,393 |
997 |
571 |
742 |
2,545 |
1,084 |
584 |
811 |
|
|
|
|
|
|
|
|
|
Gross oil-equivalent production |
413 |
189 |
144 |
70 |
388 |
169 |
137 |
71 |
(thousands of barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit cash operating cost ($/oeb) |
31.84 |
28.98 |
21.79 |
58.24 |
36.24 |
35.44 |
23.55 |
63.11 |
USD converted at the YTD average forex |
23.56 |
21.45 |
16.12 |
43.10 |
26.82 |
26.23 |
17.43 |
46.70 |
2024 |
||||||||
| (a) | Upstream includes Imperial's share of Kearl, |
____________________________________________ |
||
1 Non-GAAP financial measure - see Attachment VI for definition and reconciliation |
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/20240802229605/en/
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Source: Imperial
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