Imperial announces third quarter 2022 financial and operating results
Imperial reported a net income of $2,031 million for Q3 2022, up from $908 million in Q3 2021. Cash flow from operating activities rose to $3,089 million. The upstream production averaged 430,000 gross oil-equivalent barrels per day, driven by Kearl's recovery post-turnaround. The company achieved 100% refinery capacity utilization, marking a 40-year high. Debt was reduced by $1 billion following XTO asset sales, and a 29% increase in quarterly dividends was announced. Plans for a $1.5 billion share buyback were also introduced.
- Net income increased to $2,031 million from $908 million in Q3 2021.
- Cash flow from operating activities reached $3,089 million, a significant year-on-year rise.
- Achieved 100% refinery capacity utilization, marking the highest in over 40 years.
- Debt reduced by $1 billion from XTO asset sales, improving financial flexibility.
- Announced a 29% increase in quarterly dividends from $0.34 to $0.44 per share.
- Initiated a $1.5 billion substantial issuer bid for share repurchases.
- Net income decreased from $2,409 million in Q2 2022 to $2,031 million in Q3 2022 amid moderating commodity prices.
- Production slightly declined from 435,000 barrels per day in Q3 2021 to 430,000 barrels per day in Q3 2022.
-
Quarterly net income of
$2,031 million $3,089 million -
Upstream production of 430,000 gross oil-equivalent barrels per day driven by strong production at Kearl and
Cold Lake -
Sustained strong Downstream operating performance with quarterly refinery capacity utilization of
100% , highest in over 40 years -
Reduced debt by
$1 billion -
Quarterly dividend increased by 29 percent from
34 cents to44 cents per share -
Completed accelerated normal course issuer bid program in October, returning over
$1.9 billion -
Announced intention to initiate a substantial issuer bid to purchase up to
$1.5 billion - Released annual Corporate Sustainability Report, outlining the company's environmental, social and governance progress and focus areas
|
Third quarter |
|
Nine months |
|||||||||
millions of Canadian dollars, unless noted |
2022 |
|
2021 |
|
∆ |
|
2022 |
|
2021 |
|
∆ |
|
Net income (loss) ( |
2,031 |
|
908 |
|
+1,123 |
|
5,613 |
|
1,666 |
|
+3,947 |
|
Net income (loss) per common share, assuming dilution (dollars) |
3.24 |
|
1.29 |
|
+1.95 |
|
8.58 |
|
2.31 |
|
+6.27 |
|
Capital and exploration expenditures |
392 |
|
277 |
|
+115 |
|
1,002 |
|
699 |
|
+303 |
|
Imperial reported estimated net income in the third quarter of
“Imperial’s business lines delivered another quarter of exceptional operating performance, increasing the supply of crude and fuel products to support Canadian and global energy needs,” said
Upstream production in the third quarter averaged 430,000 gross oil-equivalent barrels per day. At Kearl, quarterly total gross production increased substantially from the second quarter of 2022 to an average of 271,000 barrels per day following the completion of its annual turnaround. Subsequent to the third quarter, Kearl's October production continued to increase, achieving multiple single-day production records. At
In the Downstream, quarterly refining throughput averaged 426,000 barrels per day, with capacity utilization of 100 percent, the highest quarterly utilization in over 40 years, ensuring a stable supply of fuel products to meet Canadian demand. Petroleum product sales remained strong in the quarter, averaging 484,000 barrels per day. In September, Imperial signed a long-term contract with Air Products to supply low-carbon hydrogen for the company’s planned renewable diesel complex at its
In August, Imperial successfully completed the previously announced sale of its XTO Energy Canada assets to Whitecap Resources for a total cash consideration of approximately
“The sale of Imperial’s XTO assets positions the company well to not only continue focusing Upstream resources on our core oil sands assets but also enabled us to further enhance our industry leading balance sheet and improve the company’s financial flexibility,” said Corson.
During the quarter, Imperial returned to shareholders
“Paying a reliable and growing dividend and returning surplus cash to shareholders remain key priorities for us” said Corson. “Imperial has generated substantial value for its shareholders this year and I am pleased to announce a 29 percent increase to our quarterly dividend as well as our plans to initiate a second substantial issuer bid this year, returning up to
Imperial continues to advance solutions to lower emissions in its operations. The company is a founding member of the
In September, Imperial released its annual Sustainability report which highlights progress and momentum in the company’s key environmental, social and governance focus areas and complements the company’s Advancing Climate Solutions report published earlier this year.
“The challenges we are facing today require collaboration across industry, governments, indigenous communities and other stakeholders,” said Corson. “It’s why we became a founding member of the
Third quarter highlights
-
Net income of
$2,031 million $3.24 $908 million $1.29 $1,823 million $908 million -
Cash flows from operating activities of
$3,089 million $1,947 million $2,543 million $1,504 million -
Capital and exploration expenditures totalled
$392 million $277 million -
The company returned
$1,739 million $227 million $1,512 million $434 million -
Announced intention to initiate a substantial issuer bid to purchase for cancellation up to
$1.5 billion - Production averaged 430,000 gross oil-equivalent barrels per day, compared to 435,000 barrels per day in the same period of 2021.
- Total gross bitumen production at Kearl averaged 271,000 barrels per day (193,000 barrels Imperial's share), compared to 274,000 barrels per day (194,000 barrels Imperial's share) in the third quarter of 2021. Subsequent to the third quarter, Kearl’s October production continued to increase, achieving multiple single-day production records.
-
Gross bitumen production at
Cold Lake averaged 150,000 barrels per day, up from 135,000 barrels per day in the third quarter of 2021, representing the fourth consecutive quarter with production at or above 140,000 barrels per day. Consistent with this sustained production performance, Imperial is increasing its 2022 production guidance atCold Lake to between 140,000 - 145,000 barrels per day. - The company's share of gross production from Syncrude averaged 62,000 barrels per day, compared to 78,000 barrels per day in the third quarter of 2021, primarily driven by the timing of planned turnaround activities.
- Refinery throughput averaged 426,000 barrels per day, up from 404,000 barrels per day in the third quarter of 2021. Capacity utilization reached 100 percent, the highest quarterly utilization in over 40 years, up from 94 percent in the third quarter of 2021, as the company continues to maximize production to meet Canadian demand.
- Petroleum product sales were 484,000 barrels per day, compared to 485,000 barrels per day in the third quarter of 2021.
-
Chemical net income of
$54 million $121 million -
Announced long-term contract with Air Products to supply low-carbon hydrogen for Imperial’s proposed renewable diesel complex near
Edmonton, Alberta . The complex is expected to produce more than 1 billion litres of renewable diesel per year from locally sourced feedstock and low-carbon hydrogen. A final investment decision will be made in the coming months. -
Completed, together with
ExxonMobil Canada , the previously announced sale of XTO Energy Canada to Whitecap Resources for total cash consideration of approximately$1.9 billion $0.9 billion $208 million $1 billion -
As a member of the
Pathways Alliance , advanced early work to support the foundational carbon capture and storage network in northernAlberta as part of Pathways' goal to achieve net zero emissions. In early October, the Government ofAlberta awarded thePathways Alliance pore space to continue exploratory work on the development of a hub to safely and permanently store CO2 from over 20 industry oil sands facilities and other interested industries in northernAlberta . - Released annual Corporate Sustainability Report. The report highlights key environmental, social and governance focus areas and progress, complementing the company’s previously released Advancing Climate Solutions report.
- Announced unique collaboration with FLO that will support Canada’s net zero emissions goals by expanding FLO’s charging network for electric vehicles. This collaboration will jointly develop an electric vehicle charging service option for Imperial’s Esso and Mobil branded wholesalers and includes an agreement to transfer credits to Imperial under Canada’s Clean Fuel Regulations.
Current 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. In the first half of 2022, tightness in the oil and natural gas markets was further exacerbated by Russia’s invasion of
Operating results
Third quarter 2022 vs. third quarter 2021
|
Third Quarter |
|||
millions of Canadian dollars, unless noted |
2022 |
|
2021 |
|
Net income (loss) ( |
2,031 |
|
908 |
|
Net income (loss) per common share, assuming dilution (dollars) |
3.24 |
|
1.29 |
|
Net income (loss) excluding identified items1 |
1,823 |
|
908 |
|
|
|
|
|
|
Current quarter results include favourable identified items1 of
Upstream |
||||||||||||
Net income (loss) factor analysis |
||||||||||||
millions of Canadian dollars |
||||||||||||
2021 |
Price |
Volumes |
Royalty |
Identified Items¹ |
Other |
2022 |
||||||
524 |
660 |
(100) |
(210) |
208 |
(96) |
986 |
||||||
Price – Higher realizations were generally in line with increases in marker prices, driven primarily by increased demand and supply chain constraints. Average bitumen realizations increased by
Volumes – Lower volumes were the result of timing of planned turnaround activities at Syncrude, partially offset by higher volumes at
Royalty – Higher royalties primarily driven by improved commodity prices.
Identified Items1 – Current quarter results include favourable identified items1 related to the company's gain on the sale of interests in XTO Energy Canada.
Other – Includes higher operating expenses of about
Marker prices and average realizations |
||||
|
Third Quarter |
|||
Canadian dollars, unless noted |
2022 |
|
2021 |
|
West Texas Intermediate (US$ per barrel) |
91.43 |
|
70.52 |
|
Western Canada Select (US$ per barrel) |
71.53 |
|
57.08 |
|
WTI/WCS Spread (US$ per barrel) |
19.90 |
|
13.44 |
|
Bitumen (per barrel) |
81.58 |
|
60.44 |
|
Synthetic crude oil (per barrel) |
124.80 |
|
85.94 |
|
Average foreign exchange rate (US$) |
0.77 |
|
0.79 |
|
Production |
||||
|
Third Quarter |
|||
thousands of barrels per day |
2022 |
|
2021 |
|
Kearl (Imperial's share) |
193 |
|
194 |
|
|
150 |
|
135 |
|
Syncrude (a) |
62 |
|
78 |
|
|
|
|
|
|
Kearl total gross production (thousands of barrels per day) |
271 |
|
274 |
|
(a) |
In the third quarter of 2022, Syncrude gross production included about 7 thousand barrels per day of bitumen and other products (2021 - 1 thousand barrels per day) that was exported to the operator's facilities using an existing interconnect pipeline. |
Higher production at
Lower production at Syncrude was primarily a result of the timing of planned turnaround activities.
Downstream |
||||||
Net income (loss) factor analysis |
||||||
millions of Canadian dollars |
||||||
2021 |
Margins |
Other |
2022 |
|||
293 |
710 |
9 |
1,012 |
|||
Margins – Higher margins primarily reflect improved market conditions.
Refinery utilization and petroleum product sales |
||||
|
Third Quarter |
|||
thousands of barrels per day, unless noted |
2022 |
|
2021 |
|
Refinery throughput |
426 |
|
404 |
|
Refinery capacity utilization (percent) |
100 |
|
94 |
|
Petroleum product sales |
484 |
|
485 |
|
Improved refinery throughput in the third 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 |
|||
121 |
(60) |
(7) |
54 |
|||
Margins – Lower margins primarily reflect weaker industry polyethylene margins.
Corporate and other |
||||
|
Third Quarter |
|||
millions of Canadian dollars |
2022 |
|
2021 |
|
Net income (loss) ( |
(21) |
|
(30) |
|
Liquidity and capital resources |
||||
|
Third Quarter |
|||
millions of Canadian dollars |
2022 |
|
2021 |
|
Cash flow generated from (used in): |
|
|
|
|
Operating activities |
3,089 |
|
1,947 |
|
Investing activities |
364 |
|
(259) |
|
Financing activities |
(2,744) |
|
(589) |
|
Increase (decrease) in cash and cash equivalents |
709 |
|
1,099 |
|
|
|
|
|
|
Cash and cash equivalents at period end |
3,576 |
|
1,875 |
|
Cash flow generated from operating activities primarily reflects higher Upstream realizations, improved Downstream margins, and favourable working capital impacts.
Cash flow generated from investing activities primarily reflects proceeds from the sale of interests in XTO Energy Canada, partially offset by higher additions to property, plant and equipment.
Cash flow used in financing activities primarily reflects:
|
Third Quarter |
|||
millions of Canadian dollars, unless noted |
2022 |
|
2021 |
|
Dividends paid |
227 |
|
195 |
|
Per share dividend paid (dollars) |
0.34 |
|
0.27 |
|
Share repurchases (a) |
1,512 |
|
313 |
|
Number of shares purchased (millions) (a) |
25.2 |
|
9.0 |
|
(a) |
Share repurchases were made under the company's normal course issuer bid program, and include shares purchased from |
During the third quarter of 2022, the company decreased its long-term debt by
Nine months 2022 vs. nine months 2021
|
Nine Months |
|||
millions of Canadian dollars, unless noted |
2022 |
|
2021 |
|
Net income (loss) ( |
5,613 |
|
1,666 |
|
Net income (loss) per common share, assuming dilution (dollars) |
8.58 |
|
2.31 |
|
Net income (loss) excluding identified items1 |
5,405 |
|
1,666 |
|
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 |
||||||
850 |
3,320 |
(160) |
(920) |
208 |
(184) |
3,114 |
||||||
Price – Higher realizations were generally in line with increases in marker prices, driven primarily by increased demand and supply chain constraints. Average bitumen realizations increased by
Volumes – Lower volumes were primarily the result of downtime at Kearl in the first half of the year.
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 – Includes higher operating expenses of about
Marker prices and average realizations |
||||
|
Nine Months |
|||
Canadian dollars, unless noted |
2022 |
|
2021 |
|
West Texas Intermediate (US$ per barrel) |
98.25 |
|
65.04 |
|
Western Canada Select (US$ per barrel) |
82.60 |
|
52.45 |
|
WTI/WCS Spread (US$ per barrel) |
15.65 |
|
12.59 |
|
Bitumen (per barrel) |
94.01 |
|
55.30 |
|
Synthetic crude oil (per barrel) |
129.52 |
|
77.62 |
|
Average foreign exchange rate (US$) |
0.78 |
|
0.80 |
|
Production |
||||
|
Nine Months |
|||
thousands of barrels per day |
2022 |
|
2021 |
|
Kearl (Imperial's share) |
162 |
|
185 |
|
|
145 |
|
139 |
|
Syncrude (a) |
74 |
|
68 |
|
|
|
|
|
|
Kearl total gross production (thousands of barrels per day) |
228 |
|
260 |
|
(a) |
In 2022, Syncrude gross production included about 4 thousand barrels per day of bitumen and other products (2021 - 1 thousand barrels per day) that was 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 |
|||
645 |
1,680 |
109 |
2,434 |
|||
Margins – Higher margins primarily reflect improved market conditions.
Other – Includes lower turnaround impacts of about
Refinery utilization and petroleum product sales |
||||
|
Nine Months |
|||
thousands of barrels per day, unless noted |
2022 |
|
2021 |
|
Refinery throughput |
413 |
|
367 |
|
Refinery capacity utilization (percent) |
96 |
|
86 |
|
Petroleum product sales |
471 |
|
442 |
|
Improved refinery throughput in 2022 was primarily driven by reduced turnaround activity and increased demand.
Improved petroleum product sales in 2022 primarily reflects increased demand.
Chemicals |
||||||
Net income (loss) factor analysis |
||||||
millions of Canadian dollars |
||||||
2021 |
Margins |
Other |
2022 |
|||
297 |
(90) |
(44) |
163 |
|||
Margins – Lower margins primarily reflect weaker industry polyethylene margins.
Corporate and other |
||||
|
Nine Months |
|||
millions of Canadian dollars |
2022 |
|
2021 |
|
Net income (loss) ( |
(98) |
|
(126) |
|
Liquidity and capital resources |
||||
|
Nine Months |
|||
millions of Canadian dollars |
2022 |
|
2021 |
|
Cash flow generated from (used in): |
|
|
|
|
Operating activities |
7,685 |
|
3,844 |
|
Investing activities |
(145) |
|
(613) |
|
Financing activities |
(6,117) |
|
(2,127) |
|
Increase (decrease) in cash and cash equivalents |
1,423 |
|
1,104 |
|
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 proceeds from the sale of interests in XTO Energy Canada, partially offset by higher additions to property, plant and equipment.
Cash flow used in financing activities primarily reflects:
|
Nine Months |
|||
millions of Canadian dollars, unless noted |
2022 |
|
2021 |
|
Dividends paid |
640 |
|
518 |
|
Per share dividend paid (dollars) |
0.95 |
|
0.71 |
|
Share repurchases (a) |
4,461 |
|
1,484 |
|
Number of shares purchased (millions) (a) |
66.6 |
|
38.5 |
|
(a) |
Share repurchases were made under the company’s normal course issuer bid program and substantial issuer bid that commenced on |
During the third quarter of 2022, the company decreased its long-term debt by
On
Subsequent to the end of the third quarter, the company completed all share repurchases under its normal course issuer bid on
On
Key financial and operating data follow.
Additional information regarding the tender offer
The tender offer described in this communication (the “Offer”) has not yet commenced. This communication is for informational purposes only. This communication is not a recommendation to buy or sell
On the commencement date of the Offer,
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 the company’s intention to initiate a substantial issuer bid, including the size, structure, timing for determining the terms, pricing and commencement, and ExxonMobil’s intent to make a proportionate tender; being well positioned to capture value from current commodity price environment and focus on core upstream oil sands assets;
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 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, 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 the company’s substantial issuer bid; 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; lack of required support from governments and policymakers for adoption of new technologies for emissions reductions; 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; 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; 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.
Attachment I |
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|
Third Quarter |
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Nine Months |
|||||
millions of Canadian dollars, unless noted |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
Net Income (loss) ( |
|
|
|
|
|
|
|
|
Total revenues and other income |
15,224 |
|
10,233 |
|
45,217 |
|
25,278 |
|
Total expenses |
12,719 |
|
9,044 |
|
38,012 |
|
23,106 |
|
Income (loss) before income taxes |
2,505 |
|
1,189 |
|
7,205 |
|
2,172 |
|
Income taxes |
474 |
|
281 |
|
1,592 |
|
506 |
|
Net income (loss) |
2,031 |
|
908 |
|
5,613 |
|
1,666 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share (dollars) |
3.25 |
|
1.30 |
|
8.60 |
|
2.32 |
|
Net income (loss) per common share - assuming dilution (dollars) |
3.24 |
|
1.29 |
|
8.58 |
|
2.31 |
|
|
|
|
|
|
|
|
|
|
Other Financial Data |
|
|
|
|
|
|
|
|
Gain (loss) on asset sales, after tax |
222 |
|
10 |
|
241 |
|
34 |
|
|
|
|
|
|
|
|
|
|
Total assets at |
|
|
|
|
42,986 |
|
40,875 |
|
|
|
|
|
|
|
|
|
|
Total debt at |
|
|
|
|
4,160 |
|
5,182 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity at |
|
|
|
|
22,308 |
|
21,209 |
|
|
|
|
|
|
|
|
|
|
Capital employed at |
|
|
|
|
26,491 |
|
26,412 |
|
|
|
|
|
|
|
|
|
|
Dividends declared on common stock |
|
|
|
|
|
|
|
|
Total |
211 |
|
188 |
|
666 |
|
544 |
|
Per common share (dollars) |
0.34 |
|
0.27 |
|
1.02 |
|
0.76 |
|
|
|
|
|
|
|
|
|
|
Millions of common shares outstanding |
|
|
|
|
|
|
|
|
At |
|
|
|
|
611.5 |
|
695.6 |
|
Average - assuming dilution |
626.9 |
|
701.9 |
|
654.4 |
|
721.1 |
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Attachment II |
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Third Quarter |
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Nine Months |
|||||
millions of Canadian dollars |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents at period end |
3,576 |
|
1,875 |
|
3,576 |
|
1,875 |
|
|
|
|
|
|
|
|
|
|
Operating Activities |
|
|
|
|
|
|
|
|
Net income (loss) |
2,031 |
|
908 |
|
5,613 |
|
1,666 |
|
Adjustments for non-cash items: |
|
|
|
|
|
|
|
|
Depreciation and depletion |
555 |
|
488 |
|
1,432 |
|
1,432 |
|
(Gain) loss on asset sales |
(131) |
|
(12) |
|
(155) |
|
(39) |
|
Deferred income taxes and other |
122 |
|
(120) |
|
(358) |
|
16 |
|
Changes in operating assets and liabilities |
546 |
|
443 |
|
1,140 |
|
379 |
|
All other items - net |
(34) |
|
240 |
|
13 |
|
390 |
|
Cash flows from (used in) operating activities |
3,089 |
|
1,947 |
|
7,685 |
|
3,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
(397) |
|
(276) |
|
(1,034) |
|
(684) |
|
Proceeds from asset sales |
760 |
|
15 |
|
886 |
|
57 |
|
Additional investments |
(6) |
|
— |
|
(6) |
|
— |
|
Loans to equity companies - net |
7 |
|
2 |
|
9 |
|
14 |
|
Cash flows from (used in) investing activities |
364 |
|
(259) |
|
(145) |
|
(613) |
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) financing activities |
(2,744) |
|
(589) |
|
(6,117) |
|
(2,127) |
|
|
|
|
|
|
|
|
|
|
Attachment III |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter |
|
Nine Months |
|||||
millions of Canadian dollars |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) ( |
|
|
|
|
|
|
|
|
Upstream |
986 |
|
524 |
|
3,114 |
|
850 |
|
Downstream |
1,012 |
|
293 |
|
2,434 |
|
645 |
|
Chemical |
54 |
|
121 |
|
163 |
|
297 |
|
Corporate and other |
(21) |
|
(30) |
|
(98) |
|
(126) |
|
Net income (loss) |
2,031 |
|
908 |
|
5,613 |
|
1,666 |
|
|
|
|
|
|
|
|
|
|
Revenues and other income |
|
|
|
|
|
|
|
|
Upstream |
4,949 |
|
4,152 |
|
15,432 |
|
11,579 |
|
Downstream |
16,236 |
|
9,197 |
|
49,066 |
|
20,333 |
|
Chemical |
520 |
|
477 |
|
1,554 |
|
1,309 |
|
Eliminations / Corporate and other |
(6,481) |
|
(3,593) |
|
(20,835) |
|
(7,943) |
|
Revenues and other income |
15,224 |
|
10,233 |
|
45,217 |
|
25,278 |
|
|
|
|
|
|
|
|
|
|
Purchases of crude oil and products |
|
|
|
|
|
|
|
|
Upstream |
1,937 |
|
1,902 |
|
6,184 |
|
5,780 |
|
Downstream |
13,686 |
|
7,745 |
|
42,459 |
|
16,525 |
|
Chemical |
354 |
|
244 |
|
1,070 |
|
693 |
|
Eliminations |
(6,499) |
|
(3,593) |
|
(20,864) |
|
(7,946) |
|
Purchases of crude oil and products |
9,478 |
|
6,298 |
|
28,849 |
|
15,052 |
|
|
|
|
|
|
|
|
|
|
Production and manufacturing |
|
|
|
|
|
|
|
|
Upstream |
1,381 |
|
1,120 |
|
4,053 |
|
3,395 |
|
Downstream |
419 |
|
356 |
|
1,193 |
|
1,039 |
|
Chemical |
72 |
|
49 |
|
193 |
|
145 |
|
Eliminations |
— |
|
— |
|
— |
|
— |
|
Production and manufacturing |
1,872 |
|
1,525 |
|
5,439 |
|
4,579 |
|
|
|
|
|
|
|
|
|
|
Selling and general |
|
|
|
|
|
|
|
|
Upstream |
— |
|
— |
|
— |
|
— |
|
Downstream |
174 |
|
141 |
|
474 |
|
416 |
|
Chemical |
17 |
|
21 |
|
62 |
|
68 |
|
Eliminations / Corporate and other |
18 |
|
18 |
|
89 |
|
85 |
|
Selling and general |
209 |
|
180 |
|
625 |
|
569 |
|
|
|
|
|
|
|
|
|
|
Capital and exploration expenditures |
|
|
|
|
|
|
|
|
Upstream |
309 |
|
151 |
|
764 |
|
366 |
|
Downstream |
64 |
|
120 |
|
201 |
|
308 |
|
Chemical |
2 |
|
2 |
|
5 |
|
6 |
|
Corporate and other |
17 |
|
4 |
|
32 |
|
19 |
|
Capital and exploration expenditures |
392 |
|
277 |
|
1,002 |
|
699 |
|
|
|
|
|
|
|
|
|
|
Exploration expenses charged to Upstream income included above |
1 |
|
2 |
|
4 |
|
6 |
|
|
|
|
|
|
|
|
|
|
Attachment IV |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating statistics |
Third Quarter |
|
Nine Months |
|||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
Gross crude oil and natural gas liquids (NGL) production |
|
|
|
|
|
|
|
|
(thousands of barrels per day) |
|
|
|
|
|
|
|
|
Kearl |
193 |
|
194 |
|
162 |
|
185 |
|
|
150 |
|
135 |
|
145 |
|
139 |
|
Syncrude (a) |
62 |
|
78 |
|
74 |
|
68 |
|
Conventional |
9 |
|
8 |
|
9 |
|
9 |
|
Total crude oil production |
414 |
|
415 |
|
390 |
|
401 |
|
NGLs available for sale |
1 |
|
1 |
|
1 |
|
2 |
|
Total crude oil and NGL production |
415 |
|
416 |
|
391 |
|
403 |
|
|
|
|
|
|
|
|
|
|
Gross natural gas production (millions of cubic feet per day) |
92 |
|
112 |
|
101 |
|
119 |
|
|
|
|
|
|
|
|
|
|
Gross oil-equivalent production (b) |
430 |
|
435 |
|
408 |
|
423 |
|
(thousands of oil-equivalent barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net crude oil and NGL production (thousands of barrels per day) |
||||||||
Kearl |
175 |
|
185 |
|
148 |
|
178 |
|
|
111 |
|
111 |
|
107 |
|
112 |
|
Syncrude (a) |
51 |
|
66 |
|
58 |
|
60 |
|
Conventional |
8 |
|
7 |
|
9 |
|
8 |
|
Total crude oil production |
345 |
|
369 |
|
322 |
|
358 |
|
NGLs available for sale |
1 |
|
1 |
|
1 |
|
1 |
|
Total crude oil and NGL production |
346 |
|
370 |
|
323 |
|
359 |
|
|
|
|
|
|
|
|
|
|
Net natural gas production (millions of cubic feet per day) |
87 |
|
111 |
|
95 |
|
118 |
|
|
|
|
|
|
|
|
|
|
Net oil-equivalent production (b) |
361 |
|
389 |
|
339 |
|
379 |
|
(thousands of oil-equivalent barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kearl blend sales (thousands of barrels per day) |
257 |
|
285 |
|
223 |
|
262 |
|
|
190 |
|
174 |
|
189 |
|
186 |
|
NGL sales (thousands of barrels per day) (c) |
2 |
|
1 |
|
2 |
|
— |
|
|
|
|
|
|
|
|
|
|
Average realizations (Canadian dollars) |
|
|
|
|
|
|
|
|
Bitumen (per barrel) |
81.58 |
|
60.44 |
|
94.01 |
|
55.30 |
|
Synthetic crude oil (per barrel) |
124.80 |
|
85.94 |
|
129.52 |
|
77.62 |
|
Conventional crude oil (per barrel) |
94.87 |
|
59.94 |
|
103.28 |
|
55.49 |
|
NGL (per barrel) |
61.61 |
|
57.16 |
|
64.85 |
|
45.10 |
|
Natural gas (per thousand cubic feet) |
5.10 |
|
3.88 |
|
5.72 |
|
3.50 |
|
|
|
|
|
|
|
|
|
|
Refinery throughput (thousands of barrels per day) |
426 |
|
404 |
|
413 |
|
367 |
|
Refinery capacity utilization (percent) |
100 |
|
94 |
|
96 |
|
86 |
|
|
|
|
|
|
|
|
|
|
Petroleum product sales (thousands of barrels per day) |
|
|
|
|
|
|
|
|
Gasolines |
237 |
|
250 |
|
225 |
|
219 |
|
Heating, diesel and jet fuels |
172 |
|
158 |
|
175 |
|
152 |
|
Lube oils and other products |
49 |
|
49 |
|
49 |
|
46 |
|
Heavy fuel oils |
26 |
|
28 |
|
22 |
|
25 |
|
Net petroleum products sales |
484 |
|
485 |
|
471 |
|
442 |
|
Petrochemical sales (thousands of tonnes) |
217 |
|
203 |
|
649 |
|
636 |
|
(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) |
7 |
|
1 |
|
4 |
|
1 |
|
Net bitumen and other products production (thousands of barrels per day) |
6 |
|
1 |
|
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 |
|
|
|
|
|
|
Year |
5,613 |
|
8.58 |
|
(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 |
||||||||
|
Third Quarter |
|
Nine Months |
|||||
millions of Canadian dollars |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
From Imperial's Consolidated statement of cash flows |
|
|
|
|
|
|
|
|
Cash flows from (used in) operating activities |
3,089 |
|
1,947 |
|
7,685 |
|
3,844 |
|
|
|
|
|
|
|
|
|
|
Less changes in working capital |
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities |
546 |
|
443 |
|
1,140 |
|
379 |
|
Cash flows from (used in) operating activities excl. working capital |
2,543 |
|
1,504 |
|
6,545 |
|
3,465 |
|
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
|
Third Quarter |
|
Nine Months |
|||||
millions of Canadian dollars |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
From Imperial's Consolidated statement of cash flows |
|
|
|
|
|
|
|
|
Cash flows from (used in) operating activities |
3,089 |
|
1,947 |
|
7,685 |
|
3,844 |
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) investing activities |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
(397) |
|
(276) |
|
(1,034) |
|
(684) |
|
Proceeds from asset sales |
760 |
|
15 |
|
886 |
|
57 |
|
Additional investments |
(6) |
|
— |
|
(6) |
|
— |
|
Loans to equity companies - net |
7 |
|
2 |
|
9 |
|
14 |
|
Free cash flow |
3,453 |
|
1,688 |
|
7,540 |
|
3,231 |
|
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 |
||||||||
|
Third Quarter |
|
Nine Months |
|||||
millions of Canadian dollars |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
From Imperial's Consolidated statement of income |
|
|
|
|
|
|
|
|
Net income (loss) ( |
2,031 |
|
908 |
|
5,613 |
|
1,666 |
|
|
|
|
|
|
|
|
|
|
Less identified items included in Net income (loss) |
|
|
|
|
|
|
|
|
Gain/(loss) on sale of assets |
208 |
|
— |
|
208 |
|
— |
|
Subtotal of identified items |
208 |
|
— |
|
208 |
|
— |
|
|
|
|
|
|
|
|
|
|
Net income (loss) excluding identified items |
1,823 |
|
908 |
|
5,405 |
|
1,666 |
|
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 |
||||||||
|
Third Quarter |
|
Nine Months |
|||||
millions of Canadian dollars |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
From Imperial's Consolidated statement of Income |
|
|
|
|
|
|
|
|
Total expenses |
12,719 |
|
9,044 |
|
38,012 |
|
23,106 |
|
Less: |
|
|
|
|
|
|
|
|
Purchases of crude oil and products |
9,478 |
|
6,298 |
|
28,849 |
|
15,052 |
|
Federal excise taxes and fuel charge |
584 |
|
535 |
|
1,616 |
|
1,404 |
|
Depreciation and depletion |
555 |
|
488 |
|
1,432 |
|
1,432 |
|
Non-service pension and postretirement benefit |
4 |
|
11 |
|
13 |
|
32 |
|
Financing |
16 |
|
5 |
|
34 |
|
32 |
|
Total cash operating costs |
2,082 |
|
1,707 |
|
6,068 |
|
5,154 |
|
Components of cash operating costs |
||||||||
|
Third Quarter |
|
Nine Months |
|||||
millions of Canadian dollars |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
From Imperial's Consolidated statement of Income |
|
|
|
|
|
|
|
|
Production and manufacturing |
1,872 |
|
1,525 |
|
5,439 |
|
4,579 |
|
Selling and general |
209 |
|
180 |
|
625 |
|
569 |
|
Exploration |
1 |
|
2 |
|
4 |
|
6 |
|
Cash operating costs |
2,082 |
|
1,707 |
|
6,068 |
|
5,154 |
|
Segment contributions to total cash operating costs |
||||||||
|
Third Quarter |
|
Nine Months |
|||||
millions of Canadian dollars |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Upstream |
1,382 |
|
1,122 |
|
4,057 |
|
3,401 |
|
Downstream |
593 |
|
497 |
|
1,667 |
|
1,455 |
|
Chemicals |
89 |
|
70 |
|
255 |
|
213 |
|
Corporate / Eliminations |
18 |
|
18 |
|
89 |
|
85 |
|
Cash operating costs |
2,082 |
|
1,707 |
|
6,068 |
|
5,154 |
|
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 |
||||||||||||||||
|
Third Quarter |
|||||||||||||||
|
2022 |
|
2021 |
|||||||||||||
millions of Canadian dollars |
Upstream (a) |
|
Kearl |
|
|
|
Syncrude |
|
Upstream (a) |
|
Kearl |
|
|
|
Syncrude |
|
Production and manufacturing |
1,381 |
|
581 |
|
299 |
|
442 |
|
1,120 |
|
425 |
|
288 |
|
331 |
|
Selling and general |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Exploration |
1 |
|
— |
|
— |
|
— |
|
2 |
|
— |
|
— |
|
— |
|
Cash operating costs |
1,382 |
|
581 |
|
299 |
|
442 |
|
1,122 |
|
425 |
|
288 |
|
331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross oil-equivalent production |
430 |
|
193 |
|
150 |
|
62 |
|
435 |
|
194 |
|
135 |
|
78 |
|
(thousands of barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit cash operating cost ($/oeb) |
34.93 |
|
32.72 |
|
21.67 |
|
77.49 |
|
28.04 |
|
23.81 |
|
23.19 |
|
46.13 |
|
USD converted at the quarterly average forex |
26.90 |
|
25.19 |
|
16.69 |
|
59.67 |
|
22.15 |
|
18.81 |
|
18.32 |
|
36.44 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months |
|||||||||||||||
|
2022 |
|
2021 |
|||||||||||||
millions of Canadian dollars |
Upstream (a) |
|
Kearl |
|
|
|
Syncrude |
|
Upstream (a) |
|
Kearl |
|
|
|
Syncrude |
|
Production and manufacturing |
4,053 |
|
1,680 |
|
1,017 |
|
1,170 |
|
3,395 |
|
1,341 |
|
802 |
|
1,055 |
|
Selling and general |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
Exploration |
4 |
|
— |
|
— |
|
— |
|
6 |
|
— |
|
— |
|
— |
|
Cash operating costs |
4,057 |
|
1,680 |
|
1,017 |
|
1,170 |
|
3,401 |
|
1,341 |
|
802 |
|
1,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross oil-equivalent production |
408 |
|
162 |
|
145 |
|
74 |
|
423 |
|
185 |
|
139 |
|
68 |
|
(thousands of barrels per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit cash operating cost ($/oeb) |
36.42 |
|
37.99 |
|
25.69 |
|
57.92 |
|
29.45 |
|
26.55 |
|
21.13 |
|
56.83 |
|
USD converted at the YTD average forex |
28.41 |
|
29.63 |
|
20.04 |
|
45.18 |
|
23.56 |
|
21.24 |
|
16.90 |
|
45.46 |
|
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
1 Debt, defined as "Total debt" (Attachment I, page 15), divided by capital, defined as the sum of "Total debt" and "Shareholders' equity" (Attachment I, page 15).
1 non-GAAP financial measure - see attachment VI for definition and reconciliation
View source version on businesswire.com: https://www.businesswire.com/news/home/20221028005093/en/
Investor relations
(587) 476-4743
Media relations
(587) 476-7010
Source: Imperial
FAQ
What was Imperial's net income for Q3 2022?
How much cash flow from operating activities did Imperial report for Q3 2022?
What was the quarterly dividend increase announced by Imperial?
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What was the average upstream production of Imperial in Q3 2022?
