Imperial announces third quarter 2021 financial and operating results
Imperial Oil Limited reported a net income of $908 million for Q3 2021, significantly up from $3 million in Q3 2020. The company achieved cash flow from operating activities of $1,947 million, driven by increased production and strong commodity prices. With average production of 435,000 barrels per day, this marks the highest third-quarter output in over 30 years. Shareholders benefited from over $500 million returned through dividends and share repurchases. The company also announced plans for a renewable diesel complex, enhancing its commitment to lower-carbon fuels.
- Net income increased to $908 million, a $905 million rise from Q3 2020.
- Record production of 435,000 barrels per day, the highest in over 30 years.
- Free cash flow of $1,688 million generated in Q3.
- Shareholder returns exceeded $2 billion year-to-date, including over $500 million in Q3.
- Announced plans for a renewable diesel complex, aligning with lower-carbon fuel standards.
- Higher operating expenses increased by about $210 million.
- Higher royalties increased by about $190 million, impacting net income.
-
Third quarter net income of
$908 million -
Strong integrated performance and commodity prices generated cash flow from operating activities of
$1,947 million $1,688 million - Highest third quarter production in over 30 years, driven by continued strong production at Kearl
-
Downstream capacity utilization of
94% in the quarter, highest since the fourth quarter of 2018 -
Announced plans to construct a world-class renewable diesel complex at
Strathcona refinery - Highest quarterly and year-to-date Chemical net income in over 30 years
-
Returned over
$500 million $2 billion -
Declared fourth quarter dividend of
27 cents per share
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Third quarter |
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Nine months |
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millions of Canadian dollars, unless noted |
2021 |
2020 |
∆ |
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2021 |
2020 |
∆ |
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Net income (loss) ( |
908 |
3 |
+905 |
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1,666 |
(711) |
+2,377 |
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Net income (loss) per common share, assuming dilution (dollars) |
1.29 |
- |
+1.29 |
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2.31 |
(0.97) |
+3.28 |
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Capital and exploration expenditures |
277 |
141 |
+136 |
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699 |
679 |
+20 |
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Imperial reported estimated net income in the third quarter of
“Imperial’s strong operational performance enabled the company to capture significant value from the current commodity price environment,” said
Upstream production for the third quarter averaged 435,000 gross oil-equivalent barrels per day, the highest third quarter production in over 30 years. At Kearl, quarterly total gross production averaged 274,000 barrels per day, benefiting from the elimination of its third quarter turnaround and achieving the facility’s second highest-ever quarterly production. At
Following successful completion of the planned turnaround at
In August, Imperial announced plans for the construction of a world-class renewable diesel complex at the
Chemical third quarter net income was
During the quarter, Imperial returned
1 |
non-GAAP measure – See Attachment VI for definition and reconciliation |
Third quarter highlights
-
Net income of
$908 million $1.29 $3 million $0.00 -
Cash flows from operating activities of
$1,947 million $875 million $1,504 million $533 million -
Capital and exploration expenditures totalled
$277 million $141 million $1.1 billion $1.2 billion -
The company returned
$508 million $313 million $195 million - Production averaged 435,000 gross oil-equivalent barrels per day, up from 365,000 barrels per day in the same period of 2020. Increased production was driven by strong operating performance and the absence of planned turnaround activity compared to the third quarter of 2020. Quarterly production represents the highest third quarter production in over 30 years.
- Total gross bitumen production at Kearl averaged 274,000 barrels per day (194,000 barrels Imperial's share), up from 189,000 barrels per day (134,000 barrels Imperial's share) in the third quarter of 2020 and represents the second highest-ever quarterly production. Higher production is primarily driven by the absence of the prior year outage of a third-party pipeline and impacts associated with planned turnaround activities. As planned, maintenance intervals at Kearl have been extended and the third quarter turnaround was eliminated.
-
Gross bitumen production at
Cold Lake averaged 135,000 barrels per day, up from 131,000 barrels per day in the third quarter of 2020. Higher production was primarily driven by continued production optimization and reliability enhancements, partly offset by planned maintenance. - The company's share of gross production from Syncrude averaged 78,000 barrels per day, up from 67,000 barrels per day in the third quarter of 2020. Higher production was primarily driven by the absence of planned turnaround activity in the third quarter of 2020.
-
Syncrude operatorship successfully transferred from
Syncrude Canada to Suncor. With the transition completed, additional synergies are expected to be captured, maximizing profitability and improving reliability. - Refinery throughput averaged 404,000 barrels per day, up from 341,000 barrels per day in the third quarter of 2020. Capacity utilization was 94 percent, up from 81 percent in the third quarter of 2020 and represents the highest quarterly utilization since the fourth quarter of 2018. Higher throughput was driven by increased demand.
- Petroleum product sales were 485,000 barrels per day, up from 449,000 barrels per day in the third quarter of 2020. Higher petroleum product sales were mainly due to increased demand.
-
Announced plans to construct a world-class renewable diesel complex at
Strathcona refinery . The facility is expected to produce more than 1 billion litres per year of renewable diesel from locally grown feedstocks and has the potential to reduce annual greenhouse gas emissions by about 3 million tonnes compared to conventional fuels. A final investment decision will be based on several factors. -
Chemical net income of
$121 million $27 million $297 million
Operating Results
In early 2020, the balance of supply and demand for petroleum and petrochemical products experienced two significant disruptive effects. On the demand side, the COVID-19 pandemic spread rapidly through most areas of the world resulting in substantial reductions in consumer and business activity and significantly reduced demand for crude oil, natural gas, and petroleum products. This reduction in demand coincided with announcements of increased production in certain key oil-producing countries which led to increases in inventory levels and sharp declines in prices for crude oil, natural gas, and petroleum products.
Through 2021, demand for petroleum and petrochemical products has continued to recover, with each of the company’s sequential quarterly financial results benefiting from stronger prices when compared to the prior quarter. The company continues to closely monitor industry and global economic conditions, including recovery from the COVID-19 pandemic.
Looking beyond the volatility marking recent economic conditions, the company’s annual planning process provides an opportunity to re-affirm the fundamentals of supply and demand that underpin our businesses. Consideration is given to a diverse set of risks and other factors that may influence future energy supply and demand trends, including technological advancements, regulation and government policies, climate change, greenhouse gas restrictions, and other general economic conditions. The company views climate change risks as a global issue that requires collaboration among governments, private companies, consumers and other stakeholders to create meaningful solutions. These should meet the world’s increasing demand for affordable and reliable energy while creating opportunities to transition to a lower carbon future. The variety of potential transition pathways for society to a lower-carbon future, influenced by assumptions regarding economic growth, technology and governmental policy, indicates a wide range of uncertainty for the types and demand levels of energy.
The board of directors evaluates climate change risk in the context of overall enterprise risk, including other operational, strategic, and financial risks. The company considers the interactions among these factors as it pursues a strategy that is resilient to a wide range of potential pathways for society’s energy transition while continuing to grow shareholder value. It takes into account emerging industry and economic conditions and market and government policy uncertainties in developing its strategic plans and longer-term price views as part of its annual business planning process. The company continues to make progress on its greenhouse gas emission reduction plans and efforts to position the company for success in a lower-carbon energy future. It expects to play an important role in providing energy and products that are critical to economic growth while minimizing environmental impacts and supporting society’s ambition to achieve a lower-carbon energy future. The company continues to analyze internal and external scenarios of future energy markets to create a deeper understanding of what resiliency requires and which opportunities could emerge, but the assumptions and outcome of any given scenario or set of scenarios come with a high degree of uncertainty.
To the extent the planning process results in any significant changes to the company’s current development plans for its portfolio, certain assets could be at risk for impairment. The company will complete any required asset recoverability assessments in connection with the preparation and review of the company’s year-end financial statements for inclusion in its 2021 Form 10-K. Until these activities are complete, it is not practicable to reasonably estimate the existence or range of potential future impairments.
Third quarter 2021 vs. third quarter 2020
The company recorded net income of
Upstream recorded net income of
West Texas Intermediate (WTI) averaged
The Canadian dollar averaged
Imperial’s average Canadian dollar realizations for bitumen increased in the quarter, generally in line with WCS. Bitumen realizations averaged
Total gross production of Kearl bitumen averaged 274,000 barrels per day in the third quarter (194,000 barrels Imperial’s share), up from 189,000 barrels per day (134,000 barrels Imperial’s share) in the third quarter of 2020. Higher production was primarily driven by the absence of a prior year third-party pipeline outage, market-demand production balancing, and impacts associated with planned turnaround activities.
Gross production of
The company's share of gross production from Syncrude averaged 78,000 barrels per day, up from 67,000 barrels per day in the third quarter of 2020. Higher production was primarily driven by the absence of the prior year turnaround.
Downstream recorded net income of
Refinery throughput averaged 404,000 barrels per day, up from 341,000 barrels per day in the third quarter of 2020. Capacity utilization was 94 percent, up from 81 percent in the third quarter of 2020. Higher throughput was driven by increased demand.
Petroleum product sales were 485,000 barrels per day, up from 449,000 barrels per day in the third quarter of 2020. Improved petroleum product sales were mainly due to increased demand.
Chemical net income was
Corporate and other expenses were
Cash flow generated from operating activities was
Investing activities used net cash of
Cash used in financing activities was
The company’s cash balance was
Nine months highlights
-
Net income of
$1,666 million $711 million -
Net income per share on a diluted basis was
$2.31 $0.97 -
Cash flow generated from operating activities was
$3,844 million $482 million -
Capital and exploration expenditures totalled
$699 million $679 million - Gross oil-equivalent production averaged 423,000 barrels per day, up from 377,000 barrels per day in 2020.
- Refinery throughput averaged 367,000 barrels per day, up from 334,000 barrels per day in 2020.
- Petroleum product sales were 442,000 barrels per day, up from 423,000 barrels per day in 2020.
-
Per share dividends declared during the year totalled
$0.76 $0.66 -
Returned
$2,002 million
Nine months 2021 vs. nine months 2020
Net income in the first nine months of 2021 was
Upstream recorded net income of
West Texas Intermediate averaged
The Canadian dollar averaged
Imperial's average Canadian dollar realizations for bitumen increased in the first nine months of 2021, generally in line with WCS. Bitumen realizations averaged
Total gross production of Kearl bitumen averaged 260,000 barrels per day in the first nine months of 2021 (185,000 barrels Imperial's share), up from 202,000 barrels per day (143,000 barrels Imperial's share) in the same period of 2020. Higher production was primarily driven by the absence of prior year production balancing with market demands and the outage of a third-party pipeline.
Gross production of
During the first nine months of 2021, the company's share of gross production from Syncrude averaged 68,000 barrels per day, up from 63,000 barrels per day in the same period of 2020.
Downstream net income was
Refinery throughput averaged 367,000 barrels per day in the first nine months of 2021, up from 334,000 barrels per day in the same period of 2020. Capacity utilization was 86 percent, up from 79 percent in the same period of 2020. Higher throughput was driven by reduced impacts associated with the COVID-19 pandemic, partially offset by a planned turnaround at
Petroleum product sales were 442,000 barrels per day in the first nine months of 2021, up from 423,000 barrels per day in the same period of 2020. Improved petroleum product sales were mainly due to reduced impacts associated with the COVID-19 pandemic.
Chemical net income was
Corporate and other expenses were
Cash flow generated from operating activities was
Investing activities used net cash of
Cash used in financing activities was
At
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 plans to construct a 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; commodity prices, foreign exchange rates and general market conditions; 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 factors influencing a final investment decision for 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 and the impact of COVID-19 on demand; availability and allocation of capital; political or regulatory events, including changes in law or government policy such as tax laws, production curtailment and actions in response to COVID-19; 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, including in light of restrictions related to COVID-19; the results of research programs and new technologies, and ability to bring new technologies to commercial scale on a cost-competitive basis; management effectiveness and disaster response preparedness, including business continuity plans in response to COVID-19; environmental risks inherent in oil and gas exploration and production activities; the receipt, in a timely manner, of regulatory and third-party approvals; transportation for accessing markets; operational hazards and risks; cybersecurity incidents, including increased reliance on remote working arrangements and activation of business continuity plans due to COVID-19; 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.
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.
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Attachment I |
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Third Quarter |
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Nine Months |
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millions of Canadian dollars, unless noted |
2021 |
2020 |
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2021 |
2020 |
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Net Income (loss) ( |
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Total revenues and other income |
10,233 |
5,955 |
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25,278 |
16,355 |
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Total expenses |
9,044 |
5,952 |
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23,106 |
17,300 |
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Income (loss) before income taxes |
1,189 |
3 |
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2,172 |
(945) |
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Income taxes |
281 |
- |
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506 |
(234) |
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Net income (loss) |
908 |
3 |
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1,666 |
(711) |
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Net income (loss) per common share (dollars) |
1.30 |
- |
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2.32 |
(0.97) |
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Net income (loss) per common share - assuming dilution (dollars) |
1.29 |
- |
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2.31 |
(0.97) |
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Other Financial Data |
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Gain (loss) on asset sales, after tax |
10 |
10 |
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34 |
25 |
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Total assets at |
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40,875 |
39,382 |
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Total debt at |
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5,182 |
5,189 |
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Shareholders' equity at |
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21,209 |
22,792 |
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Capital employed at |
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26,412 |
28,009 |
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Dividends declared on common stock |
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Total |
188 |
161 |
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544 |
485 |
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Per common share (dollars) |
0.27 |
0.22 |
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0.76 |
0.66 |
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Millions of common shares outstanding |
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At |
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695.6 |
734.1 |
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Average - assuming dilution |
701.9 |
736.3 |
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721.1 |
735.7 |
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Attachment II |
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Third Quarter |
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Nine Months |
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millions of Canadian dollars |
2021 |
2020 |
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2021 |
2020 |
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Total cash and cash equivalents at period end |
1,875 |
817 |
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1,875 |
817 |
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Operating Activities |
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Net income (loss) |
908 |
3 |
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1,666 |
(711) |
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Adjustments for non-cash items: |
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Depreciation and depletion |
488 |
409 |
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1,432 |
1,275 |
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Impairment of intangible assets |
- |
- |
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- |
20 |
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(Gain) loss on asset sales |
(12) |
(11) |
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(39) |
(28) |
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Deferred income taxes and other |
(120) |
(11) |
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16 |
(210) |
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Changes in operating assets and liabilities |
443 |
342 |
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379 |
(87) |
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All other items - net |
240 |
143 |
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390 |
223 |
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Cash flows from (used in) operating activities |
1,947 |
875 |
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3,844 |
482 |
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Investing Activities |
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Additions to property, plant and equipment |
(276) |
(142) |
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(684) |
(657) |
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Proceeds from asset sales |
15 |
19 |
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57 |
68 |
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Loans to equity companies - net |
2 |
(2) |
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14 |
(16) |
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Cash flows from (used in) investing activities |
(259) |
(125) |
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(613) |
(605) |
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Cash flows from (used in) financing activities |
(589) |
(166) |
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(2,127) |
(778) |
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Attachment III |
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Third Quarter |
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Nine Months |
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millions of Canadian dollars |
2021 |
2020 |
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2021 |
2020 |
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Net income (loss) ( |
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Upstream |
524 |
(74) |
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850 |
(1,126) |
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Downstream |
293 |
77 |
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645 |
447 |
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Chemical |
121 |
27 |
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297 |
55 |
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Corporate and other |
(30) |
(27) |
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(126) |
(87) |
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Net income (loss) |
908 |
3 |
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1,666 |
(711) |
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Revenues and other income |
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Upstream |
4,152 |
2,303 |
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11,579 |
5,857 |
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Downstream |
9,197 |
4,406 |
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20,333 |
12,523 |
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Chemical |
477 |
268 |
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1,309 |
727 |
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Eliminations / Corporate and other |
(3,593) |
(1,022) |
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(7,943) |
(2,752) |
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Revenues and other income |
10,233 |
5,955 |
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25,278 |
16,355 |
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Purchases of crude oil and products |
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Upstream |
1,902 |
1,176 |
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5,780 |
3,338 |
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Downstream |
7,745 |
3,322 |
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16,525 |
8,987 |
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Chemical |
244 |
157 |
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693 |
416 |
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Eliminations |
(3,593) |
(1,021) |
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(7,946) |
(2,766) |
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Purchases of crude oil and products |
6,298 |
3,634 |
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15,052 |
9,975 |
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Production and manufacturing |
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Upstream |
1,120 |
863 |
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3,395 |
2,855 |
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Downstream |
356 |
335 |
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1,039 |
1,086 |
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Chemical |
49 |
48 |
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145 |
157 |
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Eliminations |
- |
- |
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- |
- |
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Production and manufacturing |
1,525 |
1,246 |
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4,579 |
4,098 |
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Selling and general |
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Upstream |
- |
- |
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- |
- |
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Downstream |
141 |
140 |
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416 |
456 |
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Chemical |
21 |
23 |
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68 |
69 |
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Eliminations / Corporate and other |
18 |
(13) |
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85 |
(26) |
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Selling and general |
180 |
150 |
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569 |
499 |
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Capital and exploration expenditures |
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Upstream |
151 |
78 |
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366 |
454 |
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Downstream |
120 |
50 |
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308 |
177 |
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Chemical |
2 |
4 |
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6 |
15 |
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Corporate and other |
4 |
9 |
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19 |
33 |
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Capital and exploration expenditures |
277 |
141 |
|
699 |
679 |
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Exploration expenses charged to Upstream income included above |
2 |
2 |
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6 |
6 |
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Attachment IV |
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Operating statistics |
Third Quarter |
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Nine Months |
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2021 |
2020 |
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2021 |
2020 |
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Gross crude oil and natural gas liquids (NGL) production |
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(thousands of barrels per day) |
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Kearl |
194 |
134 |
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185 |
143 |
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135 |
131 |
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139 |
131 |
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Syncrude |
78 |
67 |
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68 |
63 |
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Conventional |
8 |
8 |
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9 |
12 |
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Total crude oil production |
415 |
340 |
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401 |
349 |
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NGLs available for sale |
1 |
1 |
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2 |
2 |
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Total crude oil and NGL production |
416 |
341 |
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403 |
351 |
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Gross natural gas production (millions of cubic feet per day) |
112 |
144 |
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119 |
158 |
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Gross oil-equivalent production (a) |
435 |
365 |
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423 |
377 |
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(thousands of oil-equivalent barrels per day) |
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Net crude oil and NGL production (thousands of barrels per day) |
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Kearl |
185 |
133 |
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178 |
140 |
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111 |
119 |
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112 |
125 |
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Syncrude |
66 |
67 |
|
60 |
63 |
|
|
Conventional |
7 |
6 |
|
8 |
10 |
|
|
Total crude oil production |
369 |
325 |
|
358 |
338 |
|
|
NGLs available for sale |
1 |
3 |
|
1 |
2 |
|
|
Total crude oil and NGL production |
370 |
328 |
|
359 |
340 |
|
|
|
|
|
|
|
|
|
Net natural gas production (millions of cubic feet per day) |
111 |
145 |
|
118 |
151 |
||
|
|
|
|
|
|
||
Net oil-equivalent production (a) |
389 |
352 |
|
379 |
365 |
||
(thousands of oil-equivalent barrels per day) |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
Kearl blend sales (thousands of barrels per day) |
285 |
192 |
|
262 |
204 |
||
|
174 |
167 |
|
186 |
178 |
||
NGL sales (thousands of barrels per day) (b) |
1 |
1 |
|
- |
2 |
||
|
|
|
|
|
|
|
|
Average realizations (Canadian dollars) |
|
|
|
|
|
||
|
Bitumen (per barrel) |
60.44 |
35.95 |
|
55.30 |
22.24 |
|
|
Synthetic oil (per barrel) |
85.94 |
50.79 |
|
77.62 |
49.06 |
|
|
Conventional crude oil (per barrel) |
59.94 |
29.45 |
|
55.49 |
30.10 |
|
|
NGL (per barrel) |
57.16 |
18.91 |
|
45.10 |
13.06 |
|
|
Natural gas (per thousand cubic feet) |
3.88 |
1.79 |
|
3.50 |
1.72 |
|
|
|
|
|
|
|
|
|
Refinery throughput (thousands of barrels per day) |
404 |
341 |
|
367 |
334 |
||
Refinery capacity utilization (percent) |
94 |
81 |
|
86 |
79 |
||
|
|
|
|
|
|
|
|
Petroleum product sales (thousands of barrels per day) |
|
|
|
|
|
||
|
Gasolines |
250 |
241 |
|
219 |
217 |
|
|
Heating, diesel and jet fuels |
158 |
137 |
|
152 |
147 |
|
|
Heavy fuel oils |
28 |
26 |
|
25 |
19 |
|
|
Lube oils and other products |
49 |
45 |
|
46 |
40 |
|
|
Net petroleum products sales |
485 |
449 |
|
442 |
423 |
|
|
|
|
|
|
|
|
|
Petrochemical sales (thousands of tonnes) |
203 |
197 |
|
636 |
573 |
||
|
|
|
|
|
|
|
|
(a) |
Gas converted to oil-equivalent at six million cubic feet per one thousand barrels. |
(b) |
2021 year-to-date NGL sales round to 0. |
|
|
|
|
|
|
|
|
|
|
|
|
Attachment V |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per |
||
|
|
Net income (loss) ( |
common share - diluted (a) |
||||
|
|
millions of Canadian dollars |
|
|
Canadian dollars |
||
|
|
|
|
|
|
|
|
2017 |
|
|
|
|
|
||
First Quarter |
333 |
|
|
|
0.39 |
||
Second Quarter |
(77) |
|
|
|
(0.09) |
||
Third Quarter |
371 |
|
|
|
0.44 |
||
Fourth Quarter |
(137) |
|
|
|
(0.16) |
||
Year |
490 |
|
|
|
0.58 |
||
|
|
|
|
|
|
|
|
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 |
||
Year |
1,666 |
|
|
|
2.31 |
||
(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
Certain measures included in this document are not prescribed by
Cash flows from (used in) operating activities excluding working capital
Cash flows from (used in) operating activities excluding working capital is the total cash flows from operating activities less the changes in operating assets and liabilities in the period. 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.
|
|
|
Third Quarter |
|
Nine Months |
||
millions of Canadian dollars |
2021 |
2020 |
|
2021 |
2020 |
||
Cash flows from (used in) operating activities |
1,947 |
875 |
|
3,844 |
482 |
||
|
|
|
|
|
|
|
|
Less changes in working capital |
|
|
|
|
|
||
|
Changes in operating assets and liabilities |
443 |
342 |
|
379 |
(87) |
|
Cash flows from (used in) operating activities excl. working capital |
1,504 |
533 |
|
3,465 |
569 |
||
Free cash flow
Free cash flow is cash flow from operating activities less additions to property, plant and equipment and equity company investments plus proceeds from asset sales. 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.
|
|
|
Third Quarter |
|
Nine Months |
||
millions of Canadian dollars |
2021 |
2020 |
|
2021 |
2020 |
||
Cash flows from (used in) operating activities |
1,947 |
875 |
|
3,844 |
482 |
||
|
|
|
|
|
|
|
|
Cash flows from (used in) investing activities |
|
|
|
|
|
||
|
Additions to property, plant and equipment |
(276) |
(142) |
|
(684) |
(657) |
|
|
Proceeds from asset sales |
15 |
19 |
|
57 |
68 |
|
|
Loans to equity companies - net |
2 |
(2) |
|
14 |
(16) |
|
Free cash flow |
1,688 |
750 |
|
3,231 |
(123) |
||
Net income (loss) excluding identified items
Net income (loss) excluding identified items is total net income (loss) excluding individually significant non-operational events with an absolute corporate total earnings impact of at least
There were no identified items in the third quarter or year-to-date 2021 and 2020.
Cash operating costs (cash costs)
Cash operating costs consist of (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 do not reflect the total cash expenditures of the company. This measure is useful for investors to understand the company’s efforts to optimize cash through disciplined expense management.
Reconciliation of cash operating costs |
|
|
|
|
|
|
Third Quarter |
|
Nine Months |
||
millions of Canadian dollars |
2021 |
2020 |
|
2021 |
2020 |
From Imperial's Consolidated statement of Income |
|
|
|
|
|
Total expenses |
9,044 |
5,952 |
|
23,106 |
17,300 |
Less: |
|
|
|
|
|
Purchases of crude oil and products |
6,298 |
3,634 |
|
15,052 |
9,975 |
Federal excise taxes and fuel charge |
535 |
470 |
|
1,404 |
1,290 |
Depreciation and depletion |
488 |
409 |
|
1,432 |
1,295 |
Non-service pension and postretirement benefit |
11 |
31 |
|
32 |
91 |
Financing |
5 |
10 |
|
32 |
46 |
Total cash operating costs |
1,707 |
1,398 |
|
5,154 |
4,603 |
|
|
|
|
|
|
Components of cash operating costs |
|
|
|
|
|
|
Third Quarter |
|
Nine Months |
||
millions of Canadian dollars |
2021 |
2020 |
|
2021 |
2020 |
From Imperial's Consolidated statement of Income |
|
|
|
|
|
Production and manufacturing |
1,525 |
1,246 |
|
4,579 |
4,098 |
Selling and general |
180 |
150 |
|
569 |
499 |
Exploration |
2 |
2 |
|
6 |
6 |
Cash operating costs |
1,707 |
1,398 |
|
5,154 |
4,603 |
|
|
|
|
|
|
Upstream |
1,122 |
865 |
|
3,401 |
2,861 |
Downstream |
497 |
475 |
|
1,455 |
1,542 |
Chemicals |
70 |
71 |
|
213 |
226 |
Corporate/Eliminations |
18 |
(13) |
|
85 |
(26) |
Cash operating costs |
1,707 |
1,398 |
|
5,154 |
4,603 |
Unit cash operating cost (unit cash costs)
Unit cash operating costs (unit cash costs) are calculated using total gross oil-equivalent production, and are calculated for the Upstream segment, as well as the major Upstream assets. 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
|
Third Quarter |
||||||||
|
2021 |
|
2020 |
||||||
millions of Canadian dollars |
Upstream (a) |
Kearl |
Cold Lake |
Syncrude |
|
Upstream (a) |
Kearl |
Cold Lake |
Syncrude |
Production and manufacturing |
1,120 |
425 |
288 |
331 |
|
863 |
342 |
185 |
279 |
Selling and general |
- |
- |
- |
- |
|
- |
- |
- |
- |
Exploration |
2 |
- |
- |
- |
|
2 |
- |
- |
- |
Cash operating costs |
1,122 |
425 |
288 |
331 |
|
865 |
342 |
185 |
279 |
|
|
|
|
|
|
|
|
|
|
Gross oil-equivalent production |
435 |
194 |
135 |
78 |
|
365 |
134 |
131 |
67 |
(thousands of barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit cash operating cost ($/oeb) |
28.04 |
23.81 |
23.19 |
46.13 |
|
25.76 |
27.74 |
15.35 |
45.26 |
USD converted at the quarterly average forex |
22.15 |
18.81 |
18.32 |
36.44 |
|
19.32 |
20.81 |
11.51 |
33.95 |
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months |
||||||||
|
2021 |
|
2020 |
||||||
millions of Canadian dollars |
Upstream (a) |
Kearl |
Cold Lake |
Syncrude |
|
Upstream (a) |
Kearl |
Cold Lake |
Syncrude |
Production and manufacturing |
3,395 |
1,341 |
802 |
1,055 |
|
2,855 |
1,187 |
653 |
830 |
Selling and general |
- |
- |
- |
- |
|
- |
- |
- |
- |
Exploration |
6 |
- |
- |
- |
|
6 |
- |
- |
- |
Cash operating costs |
3,401 |
1,341 |
802 |
1,055 |
|
2,861 |
1,187 |
653 |
830 |
|
|
|
|
|
|
|
|
|
|
Gross oil-equivalent production |
423 |
185 |
139 |
68 |
|
377 |
143 |
131 |
63 |
(thousands of barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit cash operating cost ($/oeb) |
29.45 |
26.55 |
21.13 |
56.83 |
|
27.70 |
30.29 |
18.19 |
48.08 |
USD converted at the YTD average forex |
23.56 |
21.24 |
16.90 |
45.46 |
|
20.50 |
22.41 |
13.46 |
35.58 |
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Upstream includes 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/20211029005133/en/
Investor relations
(587) 476-4743
Media relations
(587) 476-7010
Source: Imperial
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