Imperial Oil Stock Price, News & Analysis

Imperial has appointed J.R. (Jon) Wetmore as the new Americas Fuels Value Chain Planning & Business Development Manager for Exxon Mobil Corporation (NYSE:XOM), effective May 1, 2023. Wetmore, previously Vice President of Downstream and Chemicals at Imperial, has a tenure noted for driving record performance across various market conditions and advancing the renewable diesel project at the Strathcona refinery in Edmonton, Alberta. His extensive industry experience spans over 29 years, including roles in the United States and Europe. A successor for Wetmore at Imperial will be announced later.

Imperial Oil Limited (TSE: IMO, NYSE American: IMO) has announced a quarterly dividend of 44 cents per share for Q1 2023, payable on April 1, 2023, to shareholders of record on March 3, 2023. This dividend remains unchanged from Q4 2022. With over a century in operation, Imperial has consistently paid dividends and has increased its annual payment for 28 consecutive years. The company is a leading player in Canada's petroleum industry, focusing on responsible energy resource development and maintaining high operational standards.

Imperial reported a robust fourth-quarter 2022 net income of $1,727 million, significantly up from $813 million in Q4 2021, representing a 114% increase. Cash flow from operating activities reached $2,797 million. The company achieved record upstream production of 441,000 gross oil-equivalent barrels per day, bolstered by strong performance at Kearl, Cold Lake, and Syncrude. Imperial returned over $2.1 billion to shareholders this quarter, including a first-quarter dividend of 44 cents per share. A major $720 million renewable diesel project was also approved, furthering Imperial's commitment to achieving net zero emissions by 2050.

Exxon Mobil Corporation (NYSE:XOM) reported a record-breaking $55.7 billion in earnings for 2022, alongside a cash flow from operations of $76.8 billion. The company achieved over 30% year-over-year production growth in Guyana and the Permian region and set its highest annual refining throughput globally since 2012. However, the fourth quarter of 2022 saw earnings drop to $12.8 billion due to additional European taxes and asset impairments. ExxonMobil plans to invest $22.7 billion in capital projects while extending its share-repurchase program up to $35 billion in 2023-2024. The net-debt-to-capital ratio improved to approximately 5%, enhancing financial flexibility.

Imperial has announced a significant investment of $720 million to construct Canada’s largest renewable diesel facility at its Strathcona refinery near Edmonton. Expected to produce over 1 billion litres annually, this project aims to help reduce greenhouse gas emissions by approximately 3 million tonnes per year. The facility will utilize locally sourced feedstocks and low-carbon hydrogen, boosting the local economy by creating around 600 direct construction jobs. The project aligns with British Columbia's emission reduction plans and is anticipated to commence production in 2025.

Imperial Oil Limited (TSE: IMO, NYSE American: IMO) will host its Fourth Quarter Earnings Call on January 31, 2022, at 9 a.m. MT. CEO Brad Corson and VP of Investor Relations Dave Hughes will discuss the earnings report released earlier that morning, followed by a Q&A session. Investors can register for the live webcast here. The call's details will also be available on the company's website and through Canada’s SEDAR system if technical issues arise during the earnings filing.

Imperial has announced its corporate guidance outlook for 2023, focusing on maximizing asset performance and growth initiatives while prioritizing shareholder returns. The company plans to spend $1.7 billion on capital projects, including the Strathcona Renewable Diesel project and Cold Lake's solvent technologies. Production is expected between 410,000 and 430,000 gross oil equivalent barrels per day, driven by strong performance in oil sands assets. Refinery throughput is forecasted at 395,000 to 405,000 barrels per day, with utilization rates of 92% to 94%.

Imperial Oil Limited has completed its buyback of 20,689,655 common shares at $72.50 each for a total of $1.5 billion. This represents 3.4% of Imperial’s outstanding shares as of October 31, 2022. The buyback was oversubscribed, with auction tenders getting approximately 45% of shares accepted. ExxonMobil, as the majority shareholder, maintained its 69.6% ownership by tendering 14,399,985 shares. Immediate payments for shares will be settled by December 20, 2022. Each repurchased share triggers a deemed dividend of $70.75, designated as an eligible dividend under the Canadian Income Tax Act.

Imperial Oil Limited announced the preliminary results of its substantial issuer bid, offering to buy back up to $1.5 billion of its common shares through a modified Dutch auction. The tender price ranged from $72.50 to $87.00 per share, with the Offer expiring on December 9, 2022. Preliminary calculations indicate that approximately 20.7 million shares will be purchased at $72.50 each, representing 3.4% of outstanding shares. Following the Offer, Exxon Mobil Corporation will maintain a 69.6% ownership stake.