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Imperial announces 2017 financial and operating results

Friday, February 2, 2018

Imperial announces 2017 financial and operating results


  • Full-year earnings of $490 million; $1,056 million excluding upstream non-cash impairment charges
  • Progressing work to increase Kearl annual average gross production to 240,000 barrels per day
  • Returned more than $1.1 billion to shareholders through share purchases and dividends

CALGARY, Alberta

Imperial Oil Limited (TSX: IMO):


Fourth quarter


Twelve months

millions of Canadian dollars, unless noted     2017       2016       %       2017       2016       %
Net income (loss) (U.S. GAAP) (137) 1,444 (109) 490 2,165 (77)
Net income (loss) per common share
- assuming dilution (dollars)
(0.16) 1.70 (109) 0.58 2.55 (77)
Capital and exploration expenditures 216 213 1 671 1,161 (42)

Estimated full-year 2017 net income was $490 million, reflecting non-cash impairment charges of $566 million associated with the Horn River development and the Mackenzie gas project. The decisions not to proceed with these projects at this time were the result of many factors, including an assessment of the relative competitiveness of the investments. The 2017 results compare with net income of $2,165 million in 2016, which included a $1.7 billion gain from the sale of retail sites.

Throughout the year, Imperial improved performance and strengthened its competitive position, focusing on increasing cash flow while delivering industry-leading shareholder returns over the business cycle.

Imperial’s downstream business continued to deliver strong performance across the value chain in 2017. Refining achieved several best-ever results, most notably in energy efficiency and reliability. Petroleum product sales reached the highest level in more than 25 years, demonstrating the company’s commitment to grow volumes and deliver value to customers. Imperial increased its branded sales with the conversion of Husky’s truck transport network to the Esso brand and the opening of Canada’s first Mobil-branded service stations.

Imperial achieved gross oil-equivalent production of 375,000 barrels per day in 2017. The company continued to implement upstream enhancements, increasing annual production at Cold Lake and Kearl, while progressing additional opportunities to further improve performance.

“Substantial progress was made towards addressing reliability issues at Kearl. Following these improvements, Kearl is expected to produce an annual average of 200,000 barrels per day gross in 2018,” said Rich Kruger, chairman, president and chief executive officer.

Capital-efficient investments to add front-end redundancy and flow distribution optionality were announced in the fourth quarter and are expected to be complete by year-end 2019. This work will position the Kearl operation to perform beyond its initial scope by increasing annual average gross production to approximately 240,000 barrels per day in 2020.

Additionally, the company returned more than $1.1 billion to shareholders in 2017 with the resumption of share purchases and continued dividend growth.

“Imperial has high-quality assets, the advantage of integration and a dedicated workforce,” said Kruger. “We are well-positioned to continue to deliver long-term value to our shareholders.”

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.