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Imperial announces third quarter 2017 financial and operating results

Friday, October 27, 2017

Imperial announces third quarter 2017 financial and operating results

  • 18 percent increase in upstream production from the second quarter of 2017
  • Petroleum product sales of 500,000 barrels per day remain at near record levels
  • Returned $386 million to shareholders in the form of dividends and share purchases

CALGARY, Alberta

Imperial Oil Limited (TSX: IMO):


Third quarter


Nine months

millions of dollars, unless noted 2017       2016       % 2017       2016       %
Net income (loss) (U.S. GAAP) 371 1,003 (63 ) 627 721 (13 )
Net income (loss) per common share
- assuming dilution (dollars)
0.44 1.18 (63 ) 0.74 0.85 (13 )
Capital and exploration expenditures 159 205 (22 ) 455 948 (52 )

Imperial recorded estimated net income of $371 million in the third quarter of 2017, compared with net income of $1,003 million in the same period of 2016. The results for 2016 included a $716 million gain ($0.84 per-share) from the sale of retail sites.

“Third quarter operating performance in both the upstream and downstream businesses was strong and improved significantly compared to the second quarter of 2017. Imperial continues to focus on base business operating fundamentals and progressing strategic priorities with the objective of maximizing value from our integrated asset base,” said Rich Kruger, chairman, president and chief executive officer.

Upstream gross oil-equivalent production in the third quarter was 390,000 barrels per day, 18 percent higher than the second quarter of 2017, driven by increased volumes at each of Imperial’s major assets. Kearl produced 182,000 barrels per day in the quarter (129,000 barrels Imperial’s share), including the impact of scheduled turnaround activities, as reliability continues to improve. The company optimized planned maintenance events to implement enhancements, consistent with Kearl’s reliability improvement plan. Syncrude recovered from the fire at its Mildred Lake upgrader early in the quarter and sustained high production volumes thereafter.

Imperial’s downstream business continued to deliver strong results. Petroleum product sales remained at near-record levels, reflecting the company’s focus on securing long-term supply agreements with major customers. In the third quarter, Imperial expanded its brand offerings by launching the first Mobil service stations in Canada and continued progressing the conversion of Husky truck transport sites to the Esso brand. These actions are driven by Imperial’s strategy to grow its product outlets and add value through branded fuels supply and marketing activities.

“We have an organization-wide focus on optimizing our integrated business model and capturing opportunities in the market,” Kruger added. “Imperial demonstrates resiliency throughout the business cycle and remains positioned to deliver long-term shareholder value.”

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.