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Imperial announces 2016 financial and operating results

Tuesday, January 31, 2017

Imperial announces 2016 financial and operating results


  • Full-year earnings of $2.2 billion, including gains on retail asset sales of $1.7 billion
  • Increased annual production at all major upstream assets; record high liquids production
  • Best-ever safety, operational integrity and environmental performance

CALGARY, Alberta

Imperial Oil Limited (TSX: IMO):


Fourth quarter


Twelve months

millions of dollars, unless noted 2016       2015       % 2016       2015       %
Net income (loss) (U.S. GAAP) 1,444 102 1,316 2,165 1,122 93
Net income (loss) per common share
- assuming dilution (dollars)
1.70 0.12 1,316 2.55 1.32 93
Capital and exploration expenditures 213 584 (64) 1,161 3,595 (68)

Estimated full-year 2016 earnings were $2,165 million compared with $1,122 million in 2015, reflecting a $1.7 billion gain from the sale of retail sites and the company’s ability to deliver results in the current crude price environment.

“This year’s results demonstrate strong operating performance across all business lines and a continued focus on what we can control,” said Rich Kruger, chairman, president and chief executive officer. “Our capital discipline and efficiency mindset, coupled with strategic sales of assets, led us to achieve sustainable improvements and strengthen the company for the future.”

A major accomplishment in 2016 was the successful sale of the 500 remaining company-owned Esso retail sites to five fuel distributors operating under the branded wholesaler model. Imperial will continue to invest in product innovation and leading-edge marketing and loyalty programs, while leveraging the operational expertise of its distributors to grow the Esso brand in the highly competitive fuels marketing business.

Imperial achieved annual production growth at all of its major upstream assets, with total liquids production reaching the highest level in company history. Syncrude’s fourth quarter production matched its previous record high, reflecting ongoing efforts to improve asset reliability. While financial performance continued to be impacted by low crude prices, the company’s positive fourth quarter upstream earnings are evidence of its ability to adapt to the current business environment. Imperial continued to exercise discipline with cash operating and capital costs, represented by a reduction of $1.3 billion in 2016 relative to earlier plans. Upstream unit cash costs were 10 percent lower year-over-year.

Imperial enhanced its ability to continue to lead the industry in oil sands innovation with the opening of its state-of-the-art Calgary Research Centre. This facility hosts a team of dedicated researchers pursuing technology breakthroughs that will deliver significant environmental benefits and profitability improvements.

“Lastly, 2016 was characterized by our best-ever safety and environmental performance,” Kruger added. “We recorded our lowest number of oil spills, compliance incidents and workforce safety injuries in company history. Looking ahead, Imperial will continue its unwavering focus on safety, operational integrity, reliability and profitability.”

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 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.