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Imperial announces first quarter 2024 financial and operating results

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Imperial (IMO) announces strong first quarter 2024 financial and operating results, with net income of $1,195 million, cash flows of $1,076 million, and upstream production of 421,000 barrels per day. The company achieved record production at Kearl and progress on key projects like Cold Lake Grand Rapids. Downstream operations also performed well, with a refinery capacity utilization of 94 percent and the Esso brand achieving No.1 retail market share in Canada. The company declared a quarterly dividend of 60 cents per share and filed regulatory applications for the Pathways Alliance carbon capture and storage project.
Imperial (IMO) annuncia ottimi risultati finanziari e operativi per il primo trimestre del 2024, con un utile netto di 1.195 milioni di dollari, flussi di cassa per 1.076 milioni di dollari e una produzione a monte di 421.000 barili al giorno. L'azienda ha raggiunto una produzione record a Kearl e ha fatto progressi in progetti chiave come Cold Lake Grand Rapids. Anche le operazioni a valle hanno avuto un buon rendimento, con un utilizzo della capacità di raffinazione del 94 percento e il marchio Esso che ha raggiunto il primo posto nella quota di mercato al dettaglio in Canada. L'azienda ha dichiarato un dividendo trimestrale di 60 centesimi per azione e ha presentato le domande normative per il progetto di cattura e stoccaggio del carbonio dell'Alleanza Pathways.
Imperial (IMO) anuncia excelentes resultados financieros y operativos para el primer trimestre de 2024, con un ingreso neto de $1,195 millones, flujos de efectivo de $1,076 millones y una producción de aguas arriba de 421,000 barriles por día. La compañía logró una producción récord en Kearl y avances en proyectos clave como Cold Lake Grand Rapids. Las operaciones de aguas abajo también tuvieron un buen desempeño, con una utilización de la capacidad de refinación del 94 por ciento y la marca Esso alcanzando el No.1 en cuota de mercado minorista en Canadá. La compañía declaró un dividendo trimestral de 60 centavos por acción y presentó aplicaciones regulatorias para el proyecto de captura y almacenamiento de carbono de la Alianza Pathways.
Imperial (IMO)은 2024년 1분기에 강력한 재무 및 운영 결과를 발표하였습니다. 순수익은 11억9,500만 달러, 현금 흐름은 10억7,600만 달러, 상류 생산은 하루 42만1천 배럴을 기록하였습니다. 회사는 Kearl에서 사상 최고의 생산을 달성하고 Cold Lake Grand Rapids와 같은 주요 프로젝트에서 진전을 이루었습니다. 하류 운영도 잘 수행되어 정유 용량 이용률이 94퍼센트를 기록했으며 Esso 브랜드는 캐나다 소매 시장 점유율에서 1위를 달성했습니다. 회사는 주당 60센트의 분기 배당금을 선언하고 Pathways Alliance 탄소 포집 및 저장 프로젝트에 대한 규제 신청을 제출하였습니다.
Imperial (IMO) annonce d'excellents résultats financiers et opérationnels pour le premier trimestre de 2024, avec un bénéfice net de 1,195 milliards de dollars, des flux de trésorerie de 1,076 milliards de dollars et une production en amont de 421,000 barils par jour. L'entreprise a atteint une production record à Kearl et a progressé dans des projets clés tels que Cold Lake Grand Rapids. Les opérations en aval ont également bien performé, avec une utilisation de la capacité de raffinage de 94 pour cent et la marque Esso atteignant la première place en part de marché au détail au Canada. La société a déclaré un dividende trimestriel de 60 cents par action et a déposé des demandes réglementaires pour le projet de capture et de stockage de carbone de l'alliance Pathways.
Imperial (IMO) gibt starke Finanz- und Betriebsergebnisse für das erste Quartal 2024 bekannt, mit einem Nettogewinn von 1,195 Milliarden Dollar, Cashflows von 1,076 Milliarden Dollar und einer Förderung von 421.000 Barrel pro Tag. Das Unternehmen erreichte eine Rekordproduktion bei Kearl und machte Fortschritte bei wichtigen Projekten wie Cold Lake Grand Rapids. Auch die Downstream-Operationen liefen gut, mit einer Raffinerieauslastung von 94 Prozent und der Marke Esso, die die Nr. 1 im Einzelhandelsmarktanteil in Kanada erreichte. Das Unternehmen erklärte eine vierteljährliche Dividende von 60 Cent pro Aktie und reichte regulatorische Anträge für das Pathways Alliance Kohlenstoffabscheidungs- und -speicherprojekt ein.
Positive
  • Imperial (IMO) reported a net income of $1,195 million in the first quarter of 2024, compared to $1,365 million in the previous quarter, reflecting a seasonal decrease in upstream production volume.
  • Cash flows from operating activities were $1,076 million, down from $1,311 million in the previous quarter, but excluding working capital, cash flows were $1,521 million.
  • Upstream production averaged 421,000 gross oil-equivalent barrels per day, with record production at Kearl and progress on the Cold Lake Grand Rapids project.
  • Downstream operations had a refinery capacity utilization of 94 percent, with the Esso brand achieving No.1 retail market share in Canada.
  • The company declared a quarterly dividend of 60 cents per share and filed regulatory applications for the Pathways Alliance carbon capture and storage project.
Negative
  • Net income decreased from the previous quarter.
  • Cash flows from operating activities saw a decline compared to the previous quarter.
  • The company's downstream operations experienced a decrease in throughput compared to the previous quarter.
  • The Pathways Alliance project is still in the regulatory filing stage, with no concrete developments mentioned.

The reported net income of $1,195 million represents a slight decrease from the previous year's equivalent quarter. However, the growth in production volume, particularly the record output from Kearl, indicates robust operational efficiency. This uptick in production, combined with a strong downstream performance and a strategic focus on projects that promise both volume growth and emissions reduction, paints a positive picture for future cost management and revenue generation. The emphasis on renewable diesel production aligns with global sustainability trends and may offer long-term value creation through diversified energy offerings. For investors, the incremental dividend growth marks a consistent return, reinforcing Imperial's commitment to shareholder returns amidst a shifting energy landscape.

The throughput and capacity utilization numbers are notable, with refinery capacity at 94% signaling operational excellence. Coupled with the No.1 retail market share achievement in Canada, this reflects a strong competitive position within the sector. It is essential to monitor the execution of new projects like the Strathcona Renewable Diesel Facility, as these ventures will likely influence Imperial's market dynamics by meeting the growing demand for cleaner energy solutions. Furthermore, the proactive regulatory filings for the Pathways Alliance carbon capture project demonstrate a forward-thinking approach to environmental responsibility and could provide a hedge against future regulatory risks.

The progress in the Grand Rapids Phase 1 project, aimed at reducing greenhouse gas emissions by up to 40%, exemplifies the company's strategic shift towards sustainable practices. This not only addresses environmental concerns but also may enhance the company's social license to operate. As the global focus intensifies on environmental, social and governance (ESG) factors, Imperial's initiatives like the Pathways Alliance project could potentially improve investor perception and attract ESG-focused capital. However, the true test will be the effective implementation of these projects and their impact on reducing the company's overall carbon footprint.
  • Quarterly net income of $1,195 million
  • Cash flows from operating activities of $1,076 million and cash flows from operating activities excluding working capital1 of $1,521 million
  • Upstream production of 421,000 gross oil-equivalent barrels per day
  • Highest ever first quarter production at Kearl of 277,000 total gross oil-equivalent barrels per day (196,000 barrels Imperial's share)
  • Further progressed Cold Lake Grand Rapids, consistent with plan to ramp up production in coming weeks
  • Strong Downstream operating performance with refinery capacity utilization of 94 percent and highest ever first quarter throughput at Nanticoke
  • Esso brand achieved No.1 retail market share in Canada in 20232
  • Initial regulatory applications filed for Pathways Alliance carbon capture and storage project
  • Declared quarterly dividend of 60 cents per share

CALGARY, Alberta--(BUSINESS WIRE)-- Imperial (TSE: IMO) (NYSE American: IMO):

 

First quarter

millions of Canadian dollars, unless noted

2024

2023

Net income (loss) (U.S. GAAP)

1,195

1,248

(53)

Net income (loss) per common share, assuming dilution (dollars)

2.23

2.13

+0.10

Capital and exploration expenditures

496

429

+67

Imperial reported estimated net income in the first quarter of $1,195 million, compared to net income of $1,365 million in the fourth quarter of 2023, reflecting an expected seasonal decrease in Upstream production volume. Quarterly cash flows from operating activities was $1,076 million, compared to $1,311 million generated in the fourth quarter of 2023. Excluding the impact of working capital1, cash flows from operating activities was $1,521 million, compared to $1,799 million in the fourth quarter of 2023.

“Imperial’s first quarter financial results reflect the strength of our integrated business model as we delivered record first quarter production from Kearl and continued to deliver high utilization rates across our refining network,” said Brad Corson, chairman, president and chief executive officer. “In addition, we progressed key projects such as our Strathcona Renewable Diesel Facility and Cold Lake Grand Rapids, that support both volume growth and lower emissions to meet Canada’s energy needs.”

Upstream production in the first quarter averaged 421,000 gross oil-equivalent barrels per day. At Kearl, quarterly total gross production averaged 277,000 barrels per day (196,000 barrels Imperial's share), the highest ever first quarter production in the asset’s history. At Cold Lake, quarterly production averaged 142,000 gross barrels per day. The Grand Rapids Phase 1 project continued to progress steam injection throughout the quarter, consistent with plans to begin ramping up production in the coming weeks. The project is expected to achieve 15,000 gross barrels at full production rates and also reduce greenhouse gas emissions intensity by up to 40 percent compared to existing steam processes.

In the Downstream, quarterly throughput averaged 407,000 barrels per day, which included the highest ever first quarter throughput at Nanticoke, with overall refinery capacity utilization of 94 percent and petroleum product sales of 450,000 barrels per day. Based on retail market share data published in the first quarter, the Esso brand has now achieved the No.1 market share position in Canada on a stand-alone basis2, building on the company’s previous No.1 market share position when combining both Esso and Mobil brands. Throughout the quarter, the company continued to advance work on Canada’s largest renewable diesel facility at its Strathcona refinery, with construction activity now underway on a number of units and progressing on plan. When complete, the project is expected to be able to produce more than one billion litres of renewable diesel annually, primarily from locally sourced and grown feedstocks, and support Canada’s ambition to achieve net-zero by 2050.

During the quarter, Imperial returned $278 million to shareholders through dividend payments and declared a second quarter dividend of 60 cents per share. “A reliable and growing dividend is the foundation of our shareholder returns program, and with our first quarter increase, we are now positioned to deliver 30 consecutive years of dividend growth,” said Corson.

In March, regulatory filings began for the proposed Pathways Alliance carbon capture and storage project, starting with transportation network applications. Pathways Alliance members have been working together to develop and prepare these applications while discussing the project with Indigenous groups, local communities, landowners and governments. “The regulatory applications represent an important milestone,” said Corson. “Our industry has an important role to play in the energy transition, and Imperial remains well positioned to continue pursuing strategic opportunities to reduce emissions, provide economic benefits for local and Indigenous communities and deliver value for our shareholders.”

First quarter highlights

  • Net income of $1,195 million or $2.23 per share on a diluted basis, compared to $1,248 million or $2.13 per share in the first quarter of 2023.
  • Cash flows from operating activities of $1,076 million, up from cash flows used in operating activities of $821 million in the first quarter of 2023. Cash flows from operating activities excluding working capital1 of $1,521 million, compared to $1,554 million in the same period of 2023.
  • Capital and exploration expenditures totaled $496 million, up from $429 million in the first quarter of 2023.
  • The company returned $278 million to shareholders in the first quarter of 2024 through dividends paid.
  • Production averaged 421,000 gross oil-equivalent barrels per day, up from 413,000 gross oil-equivalent barrels per day in the same period of 2023.
  • Total gross bitumen production at Kearl averaged 277,000 barrels per day (196,000 barrels Imperial's share), the highest first quarter production in the asset's history, up from 259,000 barrels per day (184,000 barrels Imperial's share) in the first quarter of 2023, primarily driven by strong mine and plant performance.
  • Gross bitumen production at Cold Lake averaged 142,000 barrels per day, up from 141,000 barrels per day in the first quarter of 2023.
  • Further progressed steam injection at the Grand Rapids Phase 1 (GRP1) project, consistent with plans to begin ramping up production in the coming weeks. GRP1 will be the first solvent-assisted SAGD project in the industry and is expected to achieve 15,000 gross barrels per day of production at full rates while also reducing greenhouse gas emissions intensity by up to 40 percent compared to existing cyclic steam stimulation technology.
  • The company's share of gross production from Syncrude averaged 73,000 barrels per day, compared to 76,000 barrels per day in the first quarter of 2023. Syncrude began its annual planned coker turnaround in late March, which is expected to be completed in the second quarter.
  • Refinery throughput averaged 407,000 barrels per day, including highest ever first quarter throughput at Nanticoke, compared to 417,000 barrels per day in the first quarter of 2023. Capacity utilization was 94 percent, compared to 96 percent in the first quarter of 2023.
  • Petroleum product sales were 450,000 barrels per day, compared to 455,000 barrels per day in the first quarter of 2023.
  • Continued to advance work on the Strathcona Renewable Diesel facility, with construction activity now underway on a number of units and progressing on-plan. When complete the project is expected to produce more than one billion litres of renewable diesel annually, from locally sourced and grown feedstocks, and support Canada’s ambition to achieve net-zero by 2050.
  • Esso brand has achieved the No.1 market share position in Canada in 2023 on a stand-alone basis according to retail market share data published in the first quarter2. This builds on the company’s previous position holding the No.1 retail market share position in Canada when combining the Esso and Mobil brands.
  • Following a proactive decision to conduct preventative maintenance on the Winnipeg Products Pipeline, regular fuel supply into the region is being maintained through temporary transportation networks.
  • Chemical net income of $57 million in the quarter, up from $53 million in the first quarter of 2023.
  • Pathways Alliance files regulatory applications with the Alberta Energy Regulator for proposed carbon capture and storage project. Pathways Alliance has set goals to reduce emissions from oil sands operations (scope 1 and 2), working towards a goal of net zero from oil sands operations by 2050.

Recent business environment

During the first quarter of 2024, the price of crude oil remained relatively flat with the fourth quarter of 2023, as markets continued to be reasonably balanced on higher inventory levels. The Canadian WTI/WCS spread began to narrow in the first quarter, but remained in line with the 2023 full year average. Refining margins improved in the first quarter of 2024 primarily driven by industry downtime and supply disruptions.

Operating results
First quarter 2024 vs. first quarter 2023

 

First Quarter

millions of Canadian dollars, unless noted

2024

2023

Net income (loss) (U.S. GAAP)

1,195

1,248

Net income (loss) per common share, assuming dilution (dollars)

2.23

2.13

Upstream
Net income (loss) factor analysis
millions of Canadian dollars

2023

Price

Volumes

Royalty

Other

2024

330

310

60

(120)

(22)

558

Price – Average bitumen realizations increased by $16.23 per barrel, primarily driven by higher marker prices and the narrowing of the WTI/WCS spread. Synthetic crude oil realizations decreased by $8.94 per barrel, due to a weaker Synthetic/WTI spread.

Volumes – Higher volumes were primarily driven by strong mine and plant performance at Kearl.

Royalty – Higher royalties were primarily driven by improved commodity prices.

Marker prices and average realizations

 

First Quarter

Canadian dollars, unless noted

2024

2023

West Texas Intermediate (US$ per barrel)

76.86

75.98

Western Canada Select (US$ per barrel)

57.50

51.42

WTI/WCS Spread (US$ per barrel)

19.36

24.56

Bitumen (per barrel)

66.56

50.33

Synthetic crude oil (per barrel)

93.51

102.45

Average foreign exchange rate (US$)

0.74

0.74

Production

 

First Quarter

thousands of barrels per day

2024

2023

Kearl (Imperial's share)

196

184

Cold Lake

142

141

Syncrude (a)

73

76

 

 

 

Kearl total gross production (thousands of barrels per day)

277

259

(a) In the first quarter of 2023, Syncrude gross production included about 2 thousand barrels per day of bitumen and other products that were exported to the operator's facilities using an existing interconnect pipeline.

Higher production at Kearl was primarily driven by strong mine and plant performance.

Downstream
Net income (loss) factor analysis
millions of Canadian dollars

2023

Margins

Other

2024

870

(190)

(49)

631

Margins – Lower margins primarily reflect weaker market conditions.

Refinery utilization and petroleum product sales

 

First Quarter

thousands of barrels per day, unless noted

2024

2023

Refinery throughput

407

417

Refinery capacity utilization (percent)

94

96

Petroleum product sales

450

455

Lower refinery throughput was primarily driven by minor maintenance activities.

Chemicals
Net income (loss) factor analysis
millions of Canadian dollars

2023

Margins

Other

2024

53

4

57

Corporate and other

 

First Quarter

millions of Canadian dollars

2024

2023

Net income (loss) (U.S. GAAP)

(51)

(5)

Liquidity and capital resources

 

First Quarter

millions of Canadian dollars

2024

2023

Cash flows from (used in):

 

 

Operating activities

1,076

(821)

Investing activities

(481)

(414)

Financing activities

(283)

(271)

Increase (decrease) in cash and cash equivalents

312

(1,506)

 

 

 

Cash and cash equivalents at period end

1,176

2,243

Cash flows from operating activities primarily reflect the absence of unfavourable working capital impacts related to an income tax catch-up payment of $2.1 billion in the prior year.

Cash flows used in investing activities primarily reflect higher additions to property, plant and equipment.

Cash flows used in financing activities primarily reflect:

 

First Quarter

millions of Canadian dollars, unless noted

2024

2023

Dividends paid

278

266

Per share dividend paid (dollars)

0.50

0.44

Share repurchases (a)

Number of shares purchased (millions) (a)

(a) The company did not purchase any shares in the first quarter of 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, the impact and timing of the Cold Lake Grand Rapids Phase 1 project, including expected production and reductions to greenhouse gas emissions intensity, and the timing of production ramp up for such project; the company’s Strathcona renewable diesel project, including timing, feedstock sources, expected production, and reduction to greenhouse gas emissions; other references to the company’s operations helping to reduce emissions, providing economic benefits, delivering shareholder value and helping meet Canada’s energy needs and ambitions; the timing of the Syncrude coker turnaround; references to the company’s shareholder returns program and future potential dividend growth; and progress and goals of the Pathways Alliance carbon capture and storage project.

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 and the Strathcona renewable diesel project; for shareholder returns, assumptions such as cash flow forecasts, financing sources and capital structure; the adoption and impact of new facilities or technologies on reductions to greenhouse gas emissions intensity, including but not limited to technologies using solvents to replace energy intensive steam at Cold Lake, Strathcona renewable diesel, carbon capture and storage including in connection with hydrogen for the renewable diesel project, recovery technologies and efficiency projects and any changes in the scope, terms, or costs of such projects; for renewable diesel, the availability and cost of locally-sourced and grown feedstock and the supply of renewable diesel to British Columbia in connection with its low-carbon fuel legislation; the amount and timing of emissions reductions, including the impact of lower carbon fuels; that any required support from policymakers and other stakeholders for various new technologies such as carbon capture and storage will be provided; receipt of regulatory approvals in a timely manner, especially with respect to large scale emissions reduction projects; performance of third party service providers; refinery utilization; applicable laws and government policies, including with respect to climate change, greenhouse gas emissions reductions and low carbon fuels; the ability to offset any ongoing inflationary pressures; capital and environmental expenditures; cash generation, financing sources and capital structure, such as dividends and shareholder returns, including the timing and amounts of share repurchases; and commodity prices, foreign exchange rates and general market conditions, could differ materially depending on a number of factors.

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; availability and allocation of capital; the receipt, in a timely manner, of regulatory and third-party approvals, including for new technologies that will help the company meet its lower emissions goals; the results of research programs and new technologies, the ability to bring new technologies to commercial scale on a cost-competitive basis, and the competitiveness of alternative energy and other emission reduction technologies; failure, 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; political or regulatory events, including changes in law or government policy, applicable royalty rates, and tax laws including taxes on share repurchases; 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 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 Imperial Oil Limited. 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

 

 

 

 

 

 

 

Three Months

millions of Canadian dollars, unless noted

2024

2023

 

 

 

Net income (loss) (U.S. GAAP)

 

 

Total revenues and other income

12,283

12,121

Total expenses

10,711

10,476

Income (loss) before income taxes

1,572

1,645

Income taxes

377

397

Net income (loss)

1,195

1,248

 

 

 

Net income (loss) per common share (dollars)

2.23

2.14

Net income (loss) per common share - assuming dilution (dollars)

2.23

2.13

 

 

 

Other financial data

 

 

Gain (loss) on asset sales, after tax

2

8

 

 

 

Total assets at March 31

42,513

42,115

 

 

 

Total debt at March 31

4,127

4,149

 

 

 

Shareholders' equity at March 31

23,112

23,435

 

 

 

Capital employed at March 31

27,264

27,610

 

 

 

Dividends declared on common stock

 

 

Total

321

257

Per common share (dollars)

0.60

0.44

 

 

 

Millions of common shares outstanding

 

 

At March 31

535.8

584.2

Average - assuming dilution

536.9

585.4

 

 

 

 

Attachment II

 

 

 

 

 

 

 

Three Months

millions of Canadian dollars

2024

2023

 

 

 

Total cash and cash equivalents at period end

1,176

2,243

 

 

 

Operating activities

 

 

Net income (loss)

1,195

1,248

Adjustments for non-cash items:

 

 

Depreciation and depletion

490

490

(Gain) loss on asset sales

(2)

(9)

Deferred income taxes and other

(164)

(56)

Changes in operating assets and liabilities

(445)

(2,375)

All other items - net

2

(119)

Cash flows from (used in) operating activities

1,076

(821)

 

 

 

Investing activities

 

 

Additions to property, plant and equipment

(497)

(429)

Proceeds from asset sales

4

14

Loans to equity companies - net

12

1

Cash flows from (used in) investing activities

(481)

(414)

Cash flows from (used in) financing activities

(283)

(271)

 

Attachment III

 

 

 

 

 

 

 

Three Months

millions of Canadian dollars

2024

2023

 

 

 

Net income (loss) (U.S. GAAP)

 

 

Upstream

558

330

Downstream

631

870

Chemical

57

53

Corporate and other

(51)

(5)

Net income (loss)

1,195

1,248

 

 

 

Revenues and other income

 

 

Upstream

4,168

3,700

Downstream

13,639

13,482

Chemical

419

433

Eliminations / Corporate and other

(5,943)

(5,494)

Revenues and other income

12,283

12,121

 

 

 

Purchases of crude oil and products

 

 

Upstream

1,813

1,543

Downstream

11,591

11,196

Chemical

260

274

Eliminations / Corporate and other

(5,958)

(5,535)

Purchases of crude oil and products

7,706

7,478

 

 

 

Production and manufacturing

 

 

Upstream

1,188

1,287

Downstream

421

411

Chemical

53

58

Eliminations / Corporate and other

2

Production and manufacturing

1,664

1,756

 

 

 

Selling and general

 

 

Upstream

Downstream

162

157

Chemical

26

26

Eliminations / Corporate and other

58

3

Selling and general

246

186

 

 

 

Capital and exploration expenditures

 

 

Upstream

290

321

Downstream

153

74

Chemical

5

4

Corporate and other

48

30

Capital and exploration expenditures

496

429

Exploration expenses charged to Upstream income included above

1

1

 

Attachment IV

 

 

 

 

 

 

Operating statistics

Three Months

 

2024

2023

 

 

 

Gross crude oil production (thousands of barrels per day)

 

 

Kearl

196

184

Cold Lake

142

141

Syncrude (a)

73

76

Conventional

5

5

Total crude oil production

416

406

 

 

 

Gross natural gas production (millions of cubic feet per day)

30

40

 

 

 

Gross oil-equivalent production (b)

421

413

(thousands of oil-equivalent barrels per day)

 

 

 

 

 

Net crude oil production (thousands of barrels per day)

 

 

Kearl

183

171

Cold Lake

108

118

Syncrude (a)

61

70

Conventional

5

5

Total crude oil production

357

364

 

 

 

Net natural gas production (millions of cubic feet per day)

30

37

 

 

 

Net oil-equivalent production (b)

362

370

(thousands of oil-equivalent barrels per day)

 

 

 

 

 

Kearl blend sales (thousands of barrels per day)

277

261

Cold Lake blend sales (thousands of barrels per day)

190

190

 

 

 

Average realizations (Canadian dollars)

 

 

Bitumen (per barrel)

66.56

50.33

Synthetic crude oil (per barrel)

93.51

102.45

Conventional crude oil (per barrel)

52.21

65.02

Natural gas (per thousand cubic feet)

0.24

3.05

 

 

 

Refinery throughput (thousands of barrels per day)

407

417

Refinery capacity utilization (percent)

94

96

 

 

 

Petroleum product sales (thousands of barrels per day)

 

 

Gasolines

215

213

Heating, diesel and jet fuels

170

183

Lube oils and other products

43

42

Heavy fuel oils

22

17

Net petroleum products sales

450

455

Petrochemical sales (thousands of tonnes)

215

218

(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

Net bitumen and other products production (thousands of barrels per day)

2

(b)

Gas converted to oil-equivalent at six million cubic feet per one thousand barrels.

 

Attachment V

 

 

 

 

 

 

 

 

Net income (loss) per

 

Net income (loss) (U.S. GAAP)

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

(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 U.S. Generally Accepted Accounting Principles (GAAP). These measures constitute "non-GAAP financial measures" under Securities and Exchange Commission Regulation G and Item 10(e) of Regulation S-K, and "specified financial measures" under National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure of the Canadian Securities Administrators.

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

 

Three Months

millions of Canadian dollars

2024

2023

From Imperial's Consolidated statement of cash flows

 

 

Cash flows from (used in) operating activities

1,076

(821)

 

 

 

Less changes in working capital

 

 

Changes in operating assets and liabilities

(445)

(2,375)

Cash flows from (used in) operating activities excl. working capital

1,521

1,554

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

 

Three Months

millions of Canadian dollars

2024

2023

From Imperial's Consolidated statement of cash flows

 

 

Cash flows from (used in) operating activities

1,076

(821)

 

 

 

Cash flows from (used in) investing activities

 

 

Additions to property, plant and equipment

(497)

(429)

Proceeds from asset sales

4

14

Loans to equity companies - net

12

1

Free cash flow

595

(1,235)

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 $100 million in a given quarter. The net income (loss) impact of an identified item for an individual segment in a given quarter may be less than $100 million when the item impacts several segments or several periods. The most directly comparable financial measure that is disclosed in the financial statements is "Net income (loss)" within the company’s Consolidated statement of income. Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing significant non-operational events from business results. The company believes this view provides investors increased transparency into business results and trends, and provides investors with a view of the business as seen through the eyes of management. Net income (loss) excluding identified items is not meant to be viewed in isolation or as a substitute for net income (loss) as prepared in accordance with U.S. GAAP. All identified items are presented on an after-tax basis.

Reconciliation of net income (loss) excluding identified items

There were no identified items in the first quarter of 2024 and 2023.

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

 

Three Months

millions of Canadian dollars

2024

2023

From Imperial's Consolidated statement of income

 

 

Total expenses

10,711

10,476

Less:

 

 

Purchases of crude oil and products

7,706

7,478

Federal excise taxes and fuel charge

591

529

Depreciation and depletion

490

490

Non-service pension and postretirement benefit

1

20

Financing

12

16

Cash operating costs

1,911

1,943

Components of cash operating costs

 

Three Months

millions of Canadian dollars

2024

2023

From Imperial's Consolidated statement of income

 

 

Production and manufacturing

1,664

1,756

Selling and general

246

186

Exploration

1

1

Cash operating costs

1,911

1,943

Segment contributions to total cash operating costs

 

Three Months

millions of Canadian dollars

2024

2023

Upstream

1,189

1,288

Downstream

583

568

Chemicals

79

84

Eliminations / Corporate and other

60

3

Cash operating costs

1,911

1,943

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 U.S. Securities and Exchange Commission (SEC), and disclosed in the company’s SEC Form 10-K.

Components of unit cash operating cost

 

Three Months

 

2024

2023

millions of Canadian dollars

Upstream (a)

Kearl

Cold
Lake

Syncrude

Upstream (a)

Kearl

Cold
Lake

Syncrude

Production and manufacturing

1,188

498

309

342

1,287

558

302

399

Selling and general

Exploration

1

1

Cash operating costs

1,189

498

309

342

1,288

558

302

399

 

 

 

 

 

 

 

 

 

Gross oil-equivalent production

421

196

142

73

413

184

141

76

(thousands of barrels per day)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit cash operating cost ($/oeb)

31.04

27.92

23.91

51.48

34.65

33.70

23.80

58.33

USD converted at the YTD average forex

22.97

20.66

17.69

38.10

25.64

24.94

17.61

43.16

2024 US$0.74; 2023 US$0.74

               
(a) Upstream includes Imperial's share of Kearl, Cold Lake, Syncrude and other.
____________________________________________

1 Non-GAAP financial measure - see Attachment VI for definition and reconciliation

2 Based on Kalibrate survey data for the year-ended 2023

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

Investor Relations

(587) 962-4401

Media Relations

(587) 476-7010

Source: Imperial

FAQ

What was Imperial's net income in the first quarter of 2024?

Imperial reported a net income of $1,195 million in the first quarter of 2024.

What was the cash flow from operating activities in the first quarter of 2024?

Cash flows from operating activities were $1,076 million in the first quarter of 2024.

What was the upstream production average in the first quarter of 2024?

Upstream production averaged 421,000 gross oil-equivalent barrels per day in the first quarter of 2024.

What was the refinery capacity utilization in the first quarter of 2024?

The refinery capacity utilization was 94 percent in the first quarter of 2024.

What dividend did Imperial declare in the first quarter of 2024?

Imperial declared a quarterly dividend of 60 cents per share in the first quarter of 2024.

What project did Imperial file regulatory applications for in the first quarter of 2024?

Imperial filed regulatory applications for the Pathways Alliance carbon capture and storage project in the first quarter of 2024.

Imperial Oil Limited

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About IMO

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 the country’s largest petroleum refiner, a major producer of crude oil and natural gas, 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. our people are fundamental to our success. as an integrated company, we are able to offer exciting opportunities throughout all aspects of the value chain: upstream, downstream, petrochemicals, fuels marketing and research. we encourage and facilitate professional development tailored to each career path and stage. your role with imperial is the first step towards a career filled with challenge, opportunity and accomplishment. twitter.com/imperialoil youtube.com/imperialoil