Imperial Oil Limited (TSX:IMO):
-
Full-year earnings of $2,314 million; $3,922 million cash generated
from operations
-
Record annual gross production at Kearl of 206,000 barrels per day
-
Returned more than $2.5 billion to shareholders through share
purchases and dividends
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter
|
|
|
Twelve months
|
|
|
millions of Canadian dollars, unless noted
|
|
2018
|
|
2017
|
|
∆
|
|
|
2018
|
|
2017
|
|
∆
|
|
|
Net income (loss) (U.S. GAAP)
|
|
853
|
|
(137)
|
|
+990
|
|
|
2,314
|
|
490
|
|
+1,824
|
|
|
Net income (loss) per common share, assuming dilution (dollars)
|
|
1.08
|
|
(0.16)
|
|
+1.24
|
|
|
2.86
|
|
0.58
|
|
+2.28
|
|
|
Capital and exploration expenditures
|
|
493
|
|
216
|
|
+277
|
|
|
1,427
|
|
671
|
|
+756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated full-year 2018 net income was $2,314 million, including strong
fourth quarter results of $853 million despite a volatile business
environment. 2018 results compare with net income of $490 million in
2017, which included upstream non-cash impairment charges of $566
million.
The year was characterized by strong downstream financial and operating
performance, delivering on upstream production commitments, and
demonstrating the resiliency of Imperial’s integrated business model.
The company’s downstream business earned more than $2.3 billion in 2018,
a best-ever result excluding 2016 which reflected significant gains from
asset sales. During the year, multiple actions were taken to strengthen
the business, including capturing margin benefits associated with
western Canadian crude price discounts. Additionally, petroleum product
sales were 504,000 barrels per day, the highest in nearly 30 years.
“Imperial has taken a strategic approach to increase downstream earnings
with continued efforts to process more price-advantaged crudes and to
increase process unit utilization and overall reliability. Additionally,
we have achieved petroleum product sales levels not seen in decades, and
now lead the industry in retail volumes,” said Rich Kruger, chairman,
president and chief executive officer.
Imperial’s upstream business had a strong operational year. The company
achieved gross oil-equivalent production of 383,000 barrels per day in
2018, up from 375,000 barrels per day in 2017. The focus on reliability
led to record annual gross production at Kearl of 206,000 barrels per
day (146,000 barrels Imperial’s share). Kearl production was notably
strong in the second half of 2018 averaging 230,000 barrels per day
(164,000 barrels Imperial’s share) up from 181,000 barrels per day in
the first half. Imperial is currently investing to increase the annual
average gross production at Kearl to 240,000 barrels per day in 2020.
“The strong financial and operating results achieved in 2018 enabled the
company to return more than $2.5 billion to shareholders through an
increased share purchase program and our 24th consecutive
year of dividend growth,” said Kruger.
“The business environment of the past several months, including the
volatility in light and heavy crude prices, illustrates the dynamic
nature of the oil and gas business. Recent actions by the Government of
Alberta to intervene in the oil market have added further uncertainty
and unpredictability into the business and investment climate. Looking
ahead, Imperial’s high-quality assets, balanced portfolio and integrated
business model uniquely position the company to compete and deliver
long-term value to shareholders.”
Fourth quarter highlights
-
Net income of $853 million or $1.08 per share on a diluted basis, an
increase of $990 million compared to a net loss of $137 million or
$0.16 per share in the fourth quarter of 2017. Fourth quarter 2017
included upstream non-cash impairment charges of $566 million.
-
Cash generated from operating activities was $871 million, compared
with $1,080 million in the fourth quarter of 2017. Cash generated from
operating activities for the full-year 2018 was $3,922 million.
-
Capital and exploration expenditures totalled $493 million, compared
with $216 million in the fourth quarter of 2017. Full-year capital and
exploration expenditures totalled $1,427 million, primarily directed
to sustaining capital investments and previously announced projects.
-
Dividends paid and share purchases totalled $561 million in the
fourth quarter of 2018, including the purchase of about 10.1
million shares for $410 million. In 2018, Imperial returned $2,543
million to shareholders through the purchase of about 48.7 million
shares for $1,971 million and dividends paid of $572 million.
-
Production averaged 431,000 gross oil-equivalent barrels per day,
up from 399,000 barrels per day in the same period of 2017. Included
in this result is the company’s highest-ever quarterly liquids
production of 407,000 barrels per day.
-
Gross production of Kearl bitumen averaged 217,000 barrels per day (154,000
barrels Imperial’s share) up from 176,000 barrels per day (125,000
barrels Imperial’s share) in the fourth quarter of 2017. Production
was impacted by 20,000 barrels per day (14,000 barrels Imperial’s
share) associated with planned turnaround activities at one of the two
plants. The turnaround began in late-September and was completed in
mid-October.
-
Gross production of Cold Lake bitumen averaged 151,000 barrels per
day, compared to 168,000 barrels per day in the same period of
2017. Lower volumes were primarily due to production timing associated
with steam management.
-
The company’s share of gross production from Syncrude averaged
89,000 barrels per day, a new quarterly record, reflecting strong
production post-recovery from the site-wide power outage earlier in
the year. This result compares to 81,000 barrels per day in the same
period of 2017.
-
Norman Wells production averaged 7,000 barrels per day, ramping
up ahead of schedule.
-
Refinery throughput averaged 408,000 barrels per day, up from
391,000 barrels per day in the fourth quarter of 2017. Capacity
utilization was 96 percent, up from 92 percent in the fourth quarter
of 2017.
-
Petroleum product sales were 510,000 barrels per day, up from
496,000 barrels per day in the fourth quarter of 2017. Annual sales
were 504,000 barrels per day, representing the highest volumes in
nearly 30 years.
-
Downstream earnings were $1,142 million, up from $290 million
in the fourth quarter of 2017, driven by strong operating performance
and margins. This represents a best-ever quarter, excluding the fourth
quarter of 2016 which reflected a significant gain from downstream
asset sales.
-
Chemical earnings were $55 million in the quarter, contributing
to full-year earnings of $275 million, the second best annual result
in the company’s history.
-
Imperial concluded a series of agreements with Indigenous
communities in the Athabasca region. These multi-year community
agreements provide a framework for Indigenous consultation, business
and workforce development, and community relations in areas where the
company operates.
-
Protecting the boreal forest. Imperial relinquished a
23,000-acre (gross) lease in support of the proposed Biodiversity
Stewardship Area Wildland Provincial Park. The effort has been led by
the Mikisew Cree First Nation, and represents a significant joint
industry-community-government effort to protect important conservation
areas adjacent to established parks, including Wood Buffalo National
Park.
-
Imperial celebrates 40 years as the major sponsor of Esso Minor
Hockey Week. The tournament is the largest minor hockey tournament
in the world featuring more than 12,000 kids, 650 teams, 900 games,
2,600 coaches and 4,000 volunteers. Imperial, through its Esso brand,
has supported Canada’s game since 1936 when the company sponsored the
first national hockey radio broadcast.
Fourth quarter 2018 vs. fourth quarter 2017
The company’s net income for the fourth quarter of 2018 was $853 million
or $1.08 per share on a diluted basis, an increase of $990 million
compared to the net loss of $137 million or $0.16 per share, for the
same period 2017. The fourth quarter 2017 results included upstream
non-cash impairment charges of $566 million.
Upstream recorded a net loss of $310 million in the fourth quarter,
compared to a net loss of $481 million in the same period of 2017.
Improved results reflect the absence of non-cash impairment charges of
$566 million, lower royalties of about $140 million, higher volumes of
about $70 million and favourable foreign exchange effects of about $50
million. These items were partially offset by the impact of lower
Canadian crude oil realizations of about $700 million and higher
operating expenses of about $80 million.
West Texas Intermediate (WTI) averaged US$59.54 per barrel in the fourth
quarter of 2018, up from US$55.32 per barrel in the same quarter of
2017. Western Canada Select (WCS) averaged US$20.02 per barrel and
US$43.15 per barrel for the same periods. The WTI / WCS differential
widened significantly during the fourth quarter of 2018 to average
approximately US$40 per barrel for the quarter, compared to around US$12
per barrel in the same period of 2017.
The Canadian dollar averaged US$0.76 in the fourth quarter of 2018, a
decrease of US$0.03 from the fourth quarter of 2017.
Imperial’s average Canadian dollar realizations for bitumen declined
generally in line with WCS, adjusted for changes in exchange rates and
transportation costs. Bitumen realizations averaged $16.73 per barrel
for the fourth quarter of 2018, compared to $42.92 per barrel in the
fourth quarter of 2017. The company’s average Canadian dollar
realizations for synthetic crude declined significantly relative to WTI,
adjusted for changes in exchange rates and transportation costs.
Synthetic crude realizations averaged $47.63 per barrel, compared to
$74.12 per barrel in the same period of 2017.
Gross production of Cold Lake bitumen averaged 151,000 barrels per day
in the fourth quarter, compared to 168,000 barrels per day in the same
period last year. Lower volumes were primarily due to production timing
associated with steam management.
Gross production of Kearl bitumen averaged 217,000 barrels per day in
the fourth quarter (154,000 barrels Imperial’s share), up from 176,000
barrels per day (125,000 barrels Imperial’s share) during the fourth
quarter of 2017. Higher production was mainly the result of improved
operational reliability associated with ore preparation, enhanced piping
durability and feed management.
The company's share of gross production from Syncrude averaged 89,000
barrels per day, up from 81,000 barrels per day in the fourth quarter of
2017. Higher volumes were mainly due to reduced downtime.
Downstream net income was $1,142 million in the fourth quarter, up $852
million from the fourth quarter of 2017. Earnings increased mainly due
to stronger margins of about $640 million and the absence of turnaround
activities in the quarter of about $190 million.
Refinery throughput averaged 408,000 barrels per day, up from 391,000
barrels per day in the fourth quarter of 2017. Capacity utilization
increased to 96 percent from 92 percent in the fourth quarter of 2017.
Petroleum product sales were 510,000 barrels per day, up from 496,000
barrels per day in the fourth quarter of 2017. Sales growth continues to
be driven by optimization across the full downstream value chain, and
the expansion of Imperial’s logistic capabilities.
Chemical net income was $55 million in the fourth quarter, compared to
$74 million from the same quarter of 2017 primarily due to lower
industry margins.
Corporate and other expenses were $34 million in the fourth quarter,
compared to $20 million in the same period of 2017. As part of the
implementation of the Financial Accounting Standards Board’s update,
Compensation – Retirement Benefits (Topic 715): Improving the
Presentation of Net Periodic Pension Cost and Net Periodic
Postretirement Benefit Cost, beginning January 1, 2018, Corporate
and other includes all non-service pension and postretirement benefit
expenses. Prior to 2018, the majority of these costs were allocated to
the operating segments.
Cash flow generated from operating activities was $871 million in the
fourth quarter, compared with $1,080 million in the corresponding period
in 2017, reflecting unfavourable working capital effects, partially
offset by higher earnings.
Investing activities used net cash of $463 million in the fourth
quarter, compared with $327 million used in the same period of 2017,
reflecting higher additions to property, plant and equipment.
Cash used in financing activities was $568 million in the fourth
quarter, compared with $391 million used in the fourth quarter of 2017.
Dividends paid in the fourth quarter of 2018 were $151 million. The per
share dividend paid in the fourth quarter was $0.19, up from $0.16 in
the same period of 2017. During the fourth quarter, the company, under
its share purchase program, purchased about 10.1 million shares for $410
million, including shares purchased from Exxon Mobil Corporation.
The company’s cash balance was $988 million at December 31, 2018, versus
$1,195 million at the end of 2017.
The company currently anticipates exercising its share purchases
uniformly over the duration of the program. Purchase plans may be
modified at any time without prior notice.
Full-year highlights
-
Net income of $2,314 million, up $1,824 million from 2017.
-
Net income per share on a diluted basis was $2.86, up $2.28 per share
from 2017.
-
Cash flow generated from operating activities was $3,922 million, up
$1,159 million from 2017.
-
Capital and exploration expenditures totalled $1,427 million. In 2019,
capital expenditures are expected to range between $2.3 billion to
$2.4 billion, including about $800 million associated with the Aspen
in-situ project.
-
Gross oil-equivalent production averaged 383,000 barrels per day, up
8,000 barrels per day from 2017.
-
Record gross production at Kearl of 206,000 barrels per day (146,000
barrels Imperial’s share).
-
Refinery throughput averaged 392,000 barrels per day, up 9,000 barrels
per day from 2017.
-
Downstream net income of $2,366 million, up $1,326 million from 2017,
a best-ever result excluding gains on asset sales.
-
Chemical net income of $275 million, the second best in company
history, up $40 million from 2017.
-
Per share dividends declared during the year totalled $0.73, up $0.10
per share from 2017.
-
Returned $1,971 million to shareholders through share purchases.
Full-year 2018 vs. full-year 2017
Net income in 2018 was $2,314 million, or $2.86 per share on a diluted
basis, an increase of $1,824 million compared to net income of $490
million or $0.58 per share in 2017. The prior year results included
upstream non-cash impairment charges of $566 million.
Upstream recorded a net loss of $138 million in 2018, compared to a net
loss of $706 million in 2017. Improved results reflect the absence of
impairment charges of $566 million, higher Kearl volumes of about $210
million, lower royalties of about $80 million and favourable foreign
exchange effects of about $50 million. These items were partially offset
by higher operating costs of about $200 million, lower Cold Lake volumes
of about $170 million and lower Canadian crude oil realizations of about
$60 million.
West Texas Intermediate averaged US$65.03 per barrel in 2018, up from
US$50.85 per barrel in 2017. Western Canada Select averaged US$38.71 per
barrel and US$38.95 per barrel for the same periods. The WTI / WCS
differential widened to average approximately US$26 per barrel in 2018,
from around US$12 per barrel in 2017.
The Canadian dollar averaged US$0.77 in 2018, unchanged from 2017.
Imperial's average Canadian dollar realizations for bitumen declined
generally in line with WCS, adjusted for changes in the exchange rate
and transportation costs. Bitumen realizations averaged $37.56 per
barrel in 2018, a decrease of $1.57 per barrel from 2017. The company's
average Canadian dollar realizations for synthetic crude increased by
$3.08 per barrel to average $70.66 per barrel in 2018, however the
widening of the western Canadian light crude differential relative to
WTI during the fourth quarter of 2018 negatively impacted synthetic
crude realizations.
Gross production of Cold Lake bitumen averaged 147,000 barrels per day
in 2018, compared to 162,000 barrels per day in 2017. Lower volumes were
primarily due to production timing associated with steam management and
planned maintenance.
Gross production of Kearl bitumen averaged 206,000 barrels per day in
2018 (146,000 barrels Imperial's share) up from 178,000 barrels per day
(126,000 barrels Imperial's share) in 2017. Increased 2018 production
reflects improved operational reliability associated with ore
preparation, enhanced piping durability and feed management.
During 2018, the company's share of gross production from Syncrude
averaged 62,000 barrels per day, unchanged from 2017.
Downstream net income was $2,366 million, an increase of $1,326 million
versus the prior year. Higher earnings primarily reflect stronger
margins of about $1,530 million, partially offset by the absence of a
$151 million gain on the sale of a surplus property in 2017.
Refinery throughput averaged 392,000 barrels per day in 2018, up from
383,000 barrels per day in 2017. Capacity utilization increased to 93
percent from 91 percent in 2017.
Petroleum product sales were 504,000 barrels per day in 2018, up from
492,000 barrels per day in 2017. Sales growth continues to be driven by
optimization across the full downstream value chain, and the expansion
of Imperial's logistics capabilities.
Chemical net income was $275 million, an increase of $40 million versus
the prior year, reflecting higher margins and volumes.
Corporate and other expenses were $189 million in 2018, compared to $79
million in 2017. Beginning January 1, 2018, Corporate and other includes
all non-service pension and postretirement benefit expenses. Prior to
2018, the majority of these costs were allocated to the operating
segments.
Cash flow generated from operating activities was $3,922 million in
2018, up from $2,763 million in 2017, primarily reflecting higher
earnings, partially offset by unfavourable working capital effects.
Investing activities used net cash of $1,559 million in 2018, compared
with $781 million used in 2017, reflecting higher additions to property,
plant and equipment, and lower proceeds from asset sales.
Cash used in financing activities was $2,570 million in 2018, compared
with $1,178 million used in 2017. Dividends paid in 2018 were $572
million. The per share dividend paid in 2018 was $0.70, up from $0.62 in
2017. During 2018, the company, under its share purchase program,
purchased about 48.7 million shares for $1,971 million, including shares
purchased from Exxon Mobil Corporation.
Key financial and operating data follow.
Forward-looking statements
Statements of future events or conditions in this release, including
projections, targets, expectations, estimates, and business plans are
forward-looking statements. Forward-looking statements can be identified
by words such as "believe", "anticipate", "propose", "plan", "goal",
"target", "estimate", "expect", "future", "continue", "likely", "may",
"should", "will" and similar references to future periods. Disclosure
related to downstream utilization, reliability, and feedstock mix;
product sales growth through optimization and expansion; Kearl
production outlook and growth; ability to deliver long-term value;
multi-year agreements with Indigenous communities; anticipated share
purchases; and planned capital structure and expenditures including
amounts associated with Aspen constitute forward-looking statements.
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 demand growth and
energy source mix; commodity prices and foreign exchange rates;
production rates, growth and mix; project plans, dates, costs,
capacities and execution; production life and resource recoveries; cost
savings; product sales; applicable laws and government policies; and
capital and environmental expenditures could differ materially depending
on a number of factors. These factors include changes in the supply of
and demand for crude oil, natural gas, and petroleum and petrochemical
products and resulting price and margin impacts; transportation for
accessing markets; political or regulatory events, including changes in
law or government policy, applicable royalty rates and tax laws; third
party opposition to operations and projects; environmental risks
inherent in oil and gas exploration and production activities;
environmental regulation, including climate change and greenhouse gas
restrictions; currency exchange rates; availability and allocation of
capital; availability and performance of third party service providers;
unanticipated operational disruptions; management effectiveness; project
management and schedules; operational hazards and risks; disaster
response preparedness; 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.
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.
In this report all dollar amounts are expressed in Canadian dollars
unless otherwise stated. This report 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 report 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
Twelve Months
|
|
|
millions of Canadian dollars, unless noted
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss) (U.S. GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues and other income
|
|
7,890
|
|
8,077
|
|
|
35,099
|
|
29,424
|
|
|
|
Total expenses
|
|
6,804
|
|
8,286
|
|
|
32,026
|
|
28,842
|
|
|
|
Income (loss) before income taxes
|
|
1,086
|
|
(209)
|
|
|
3,073
|
|
582
|
|
|
|
Income taxes
|
|
233
|
|
(72)
|
|
|
759
|
|
92
|
|
|
|
Net income (loss)
|
|
853
|
|
(137)
|
|
|
2,314
|
|
490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share (dollars)
|
|
1.08
|
|
(0.16)
|
|
|
2.87
|
|
0.58
|
|
|
|
Net income (loss) per common share - assuming dilution (dollars)
|
|
1.08
|
|
(0.16)
|
|
|
2.86
|
|
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on asset sales, after-tax
|
|
17
|
|
1
|
|
|
38
|
|
192
|
|
|
|
Total assets at December 31
|
|
|
|
|
|
|
41,456
|
|
41,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt at December 31
|
|
|
|
|
|
|
5,180
|
|
5,207
|
|
|
|
Other long-term obligations at December 31
|
|
|
|
|
|
|
2,943
|
|
3,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity at December 31
|
|
|
|
|
|
|
24,489
|
|
24,435
|
|
|
|
Capital employed at December 31
|
|
|
|
|
|
|
29,692
|
|
29,661
|
|
|
|
Return on average capital employed (percent) (a)
|
|
|
|
|
|
|
8.1
|
|
1.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared on common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
149
|
|
134
|
|
|
587
|
|
531
|
|
|
|
Per common share (dollars)
|
|
0.19
|
|
0.16
|
|
|
0.73
|
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Millions of common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31
|
|
|
|
|
|
|
782.6
|
|
831.2
|
|
|
|
Average - assuming dilution
|
|
789.6
|
|
837.8
|
|
|
810.1
|
|
845.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Return on capital employed is annual business-segment net
income excluding after-tax cost of financing divided by the average
business-segment capital employed (an average of the beginning and
end-of-year amounts).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment II
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
Twelve Months
|
|
|
millions of Canadian dollars
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents at period end
|
|
988
|
|
1,195
|
|
|
988
|
|
1,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
853
|
|
(137)
|
|
|
2,314
|
|
490
|
|
|
Adjustments for non-cash items:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and depletion
|
|
410
|
|
1,037
|
|
|
1,509
|
|
2,172
|
|
|
Impairment of intangible assets
|
|
-
|
|
-
|
|
|
46
|
|
-
|
|
|
(Gain) loss on asset sales
|
|
(25)
|
|
(1)
|
|
|
(54)
|
|
(220)
|
|
|
Deferred income taxes and other
|
|
321
|
|
27
|
|
|
806
|
|
321
|
|
|
Changes in operating assets and liabilities
|
|
(688)
|
|
154
|
|
|
(699)
|
|
-
|
|
|
Cash flows from (used in) operating activities
|
|
871
|
|
1,080
|
|
|
3,922
|
|
2,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) investing activities
|
|
(463)
|
|
(327)
|
|
|
(1,559)
|
|
(781)
|
|
|
Proceeds associated with asset sales
|
|
25
|
|
2
|
|
|
59
|
|
232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from (used in) financing activities
|
|
(568)
|
|
(391)
|
|
|
(2,570)
|
|
(1,178)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment III
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
Twelve Months
|
|
|
millions of Canadian dollars
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) (U.S. GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
(310)
|
|
(481)
|
|
|
(138)
|
|
(706)
|
|
|
Downstream
|
|
1,142
|
|
290
|
|
|
2,366
|
|
1,040
|
|
|
Chemical
|
|
55
|
|
74
|
|
|
275
|
|
235
|
|
|
Corporate and other
|
|
(34)
|
|
(20)
|
|
|
(189)
|
|
(79)
|
|
|
Net income (loss)
|
|
853
|
|
(137)
|
|
|
2,314
|
|
490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other income
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
2,290
|
|
2,905
|
|
|
11,170
|
|
9,582
|
|
|
Downstream
|
|
6,295
|
|
6,011
|
|
|
26,837
|
|
22,138
|
|
|
Chemical
|
|
331
|
|
357
|
|
|
1,518
|
|
1,371
|
|
|
Eliminations / Corporate and other
|
|
(1,026)
|
|
(1,196)
|
|
|
(4,426)
|
|
(3,667)
|
|
|
Revenues and other income
|
|
7,890
|
|
8,077
|
|
|
35,099
|
|
29,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of crude oil and products
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
1,320
|
|
1,437
|
|
|
5,833
|
|
4,526
|
|
|
Downstream
|
|
3,662
|
|
4,506
|
|
|
19,326
|
|
16,543
|
|
|
Chemical
|
|
174
|
|
178
|
|
|
831
|
|
751
|
|
|
Eliminations
|
|
(1,031)
|
|
(1,202)
|
|
|
(4,449)
|
|
(3,675)
|
|
|
Purchases of crude oil and products
|
|
4,125
|
|
4,919
|
|
|
21,541
|
|
18,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production and manufacturing expenses
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
1,114
|
|
996
|
|
|
4,305
|
|
3,913
|
|
|
Downstream
|
|
394
|
|
407
|
|
|
1,606
|
|
1,576
|
|
|
Chemical
|
|
56
|
|
57
|
|
|
210
|
|
209
|
|
|
Eliminations
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
|
Production and manufacturing expenses
|
|
1,564
|
|
1,460
|
|
|
6,121
|
|
5,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital and exploration expenditures
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
345
|
|
130
|
|
|
991
|
|
416
|
|
|
Downstream
|
|
133
|
|
72
|
|
|
383
|
|
200
|
|
|
Chemical
|
|
6
|
|
5
|
|
|
25
|
|
17
|
|
|
Corporate and other
|
|
9
|
|
9
|
|
|
28
|
|
38
|
|
|
Capital and exploration expenditures
|
|
493
|
|
216
|
|
|
1,427
|
|
671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration expenses charged to income included above
|
|
6
|
|
154
|
|
|
19
|
|
183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment IV
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating statistics
|
|
Fourth Quarter
|
|
|
Twelve Months
|
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross crude oil and natural gas liquids (NGL) production
|
|
|
|
|
|
|
|
|
|
|
|
(thousands of barrels per day)
|
|
|
|
|
|
|
|
|
|
|
|
Cold Lake
|
|
151
|
|
168
|
|
|
147
|
|
162
|
|
|
Kearl
|
|
154
|
|
125
|
|
|
146
|
|
126
|
|
|
Syncrude
|
|
89
|
|
81
|
|
|
62
|
|
62
|
|
|
Conventional
|
|
11
|
|
3
|
|
|
5
|
|
4
|
|
|
Total crude oil production
|
|
405
|
|
377
|
|
|
360
|
|
354
|
|
|
NGLs available for sale
|
|
2
|
|
1
|
|
|
1
|
|
1
|
|
|
Total crude oil and NGL production
|
|
407
|
|
378
|
|
|
361
|
|
355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross natural gas production (millions of cubic feet per day)
|
|
144
|
|
126
|
|
|
129
|
|
120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross oil-equivalent production (a)
|
|
431
|
|
399
|
|
|
383
|
|
375
|
|
|
(thousands of oil-equivalent barrels per day)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net crude oil and NGL production (thousands of barrels per
day)
|
|
|
|
|
|
|
|
|
|
|
|
Cold Lake
|
|
128
|
|
134
|
|
|
120
|
|
132
|
|
|
Kearl
|
|
130
|
|
122
|
|
|
135
|
|
123
|
|
|
Syncrude
|
|
89
|
|
72
|
|
|
60
|
|
57
|
|
|
Conventional
|
|
12
|
|
2
|
|
|
5
|
|
3
|
|
|
Total crude oil production
|
|
359
|
|
330
|
|
|
320
|
|
315
|
|
|
NGLs available for sale
|
|
1
|
|
1
|
|
|
2
|
|
1
|
|
|
Total crude oil and NGL production
|
|
360
|
|
331
|
|
|
322
|
|
316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net natural gas production (millions of cubic feet per day)
|
|
138
|
|
124
|
|
|
126
|
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net oil-equivalent production (a)
|
|
383
|
|
352
|
|
|
343
|
|
335
|
|
|
(thousands of oil-equivalent barrels per day)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cold Lake blend sales (thousands of barrels per day)
|
|
201
|
|
222
|
|
|
199
|
|
216
|
|
|
Kearl blend sales (thousands of barrels per day)
|
|
230
|
|
172
|
|
|
207
|
|
165
|
|
|
NGL sales (thousands of barrels per day)
|
|
8
|
|
5
|
|
|
6
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realizations (Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Bitumen (per barrel)
|
|
16.73
|
|
42.92
|
|
|
37.56
|
|
39.13
|
|
|
Synthetic oil (per barrel)
|
|
47.63
|
|
74.12
|
|
|
70.66
|
|
67.58
|
|
|
Conventional crude oil (per barrel)
|
|
22.95
|
|
60.05
|
|
|
41.84
|
|
53.51
|
|
|
NGL (per barrel)
|
|
38.18
|
|
43.06
|
|
|
38.66
|
|
31.46
|
|
|
Natural gas (per thousand cubic feet)
|
|
2.59
|
|
2.28
|
|
|
2.43
|
|
2.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery throughput (thousands of barrels per day)
|
|
408
|
|
391
|
|
|
392
|
|
383
|
|
|
Refinery capacity utilization (percent)
|
|
96
|
|
92
|
|
|
93
|
|
91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum product sales (thousands of barrels per day)
|
|
|
|
|
|
|
|
|
|
|
|
Gasolines
|
|
258
|
|
259
|
|
|
255
|
|
257
|
|
|
Heating, diesel and jet fuels
|
|
189
|
|
177
|
|
|
183
|
|
177
|
|
|
Heavy fuel oils
|
|
27
|
|
14
|
|
|
26
|
|
18
|
|
|
Lube oils and other products
|
|
36
|
|
46
|
|
|
40
|
|
40
|
|
|
Net petroleum products sales
|
|
510
|
|
496
|
|
|
504
|
|
492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petrochemical sales (thousands of tonnes)
|
|
181
|
|
184
|
|
|
807
|
|
774
|
|
|
(a) 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
|
|
|
|
|
|
2014
|
|
|
|
First Quarter
|
946
|
1.11
|
|
Second Quarter
|
1,232
|
1.45
|
|
Third Quarter
|
936
|
1.10
|
|
Fourth Quarter
|
671
|
0.79
|
|
Year
|
3,785
|
4.45
|
|
|
|
|
|
2015
|
|
|
|
First Quarter
|
421
|
0.50
|
|
Second Quarter
|
120
|
0.14
|
|
Third Quarter
|
479
|
0.56
|
|
Fourth Quarter
|
102
|
0.12
|
|
Year
|
1,122
|
1.32
|
|
|
|
|
|
2016
|
|
|
|
First Quarter
|
(101)
|
(0.12)
|
|
Second Quarter
|
(181)
|
(0.21)
|
|
Third Quarter
|
1,003
|
1.18
|
|
Fourth Quarter
|
1,444
|
1.70
|
|
Year
|
2,165
|
2.55
|
|
|
|
|
|
2017
|
|
|
|
First Quarter
|
333
|
0.39
|
|
Second Quarter
|
(77)
|
(0.09)
|
|
Third Quarter
|
371
|
0.44
|
|
Fourth Quarter
|
(137)
|
(0.16)
|
|
Year
|
490
|
0.58
|
|
|
|
|
|
2018
|
|
|
|
First Quarter
|
516
|
0.62
|
|
Second Quarter
|
196
|
0.24
|
|
Third Quarter
|
749
|
0.94
|
|
Fourth Quarter
|
853
|
1.08
|
|
Year
|
2,314
|
2.86
|
|
(a) Computed using the average number of shares outstanding during
each period. The sum of the four quarters may not add to the
full
year.
|
|
|
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190201005085/en/
Copyright Business Wire 2019
