First Quarter 2024

Financial statements and management's discussion and analysis of financial condition and operating results

For the three months ended March 31, 2024

1

IMPERIAL OIL LIMITED

Consolidated statement of income (U.S. GAAP, unaudited)

Three Months

to March 31

millions of Canadian dollars

2024

2023

Revenues and other income

Revenues (a)

12,249

12,057

Investment and other income (note 3)

34

64

Total revenues and other income

12,283

12,121

Expenses

Exploration

1

1

Purchases of crude oil and products (b)

7,706

7,478

Production and manufacturing (c)

1,664

1,756

Selling and general (c)

246

186

Federal excise tax and fuel charge

591

529

Depreciation and depletion

490

490

Non-service pension and postretirement benefit

1

20

Financing (d) (note 5)

12

16

Total expenses

10,711

10,476

Income (loss) before income taxes

1,572

1,645

Income taxes

377

397

Net income (loss)

1,195

1,248

Per share information (Canadian dollars)

Net income (loss) per common share - basic (note 9)

2.23

2.14

Net income (loss) per common share - diluted (note 9)

2.23

2.13

(a) Amounts from related parties included in revenues.

2,729

3,136

(b) Amounts to related parties included in purchases of crude oil and products.

985

1,078

(c) Amounts to related parties included in production and manufacturing, and selling and general expenses.

150

135

(d) Amounts to related parties included in financing.

44

39

The information in the notes to consolidated financial statements is an integral part of these statements.

2

IMPERIAL OIL LIMITED

Consolidated statement of comprehensive income (U.S. GAAP, unaudited)

Three Months

to March 31

millions of Canadian dollars

2024

2023

Net income (loss)

1,195

1,248

Other comprehensive income (loss), net of income taxes

Postretirement benefits liability adjustment (excluding amortization)

4

21

Amortization of postretirement benefits liability adjustment

included in net benefit costs

12

10

Total other comprehensive income (loss)

16

31

Comprehensive income (loss)

1,211

1,279

The information in the notes to consolidated financial statements is an integral part of these statements.

3

IMPERIAL OIL LIMITED

Consolidated balance sheet (U.S. GAAP, unaudited)

As at

As at

Mar 31

Dec 31

millions of Canadian dollars

2024

2023

Assets

Current assets

1,176

864

Cash and cash equivalents

Accounts receivable - net (a)

5,204

4,482

Inventories of crude oil and products

2,106

1,944

Materials, supplies and prepaid expenses

1,043

1,008

Total current assets

9,529

8,298

Investments and long-term receivables (b)

1,082

1,062

Property, plant and equipment,

56,680

56,200

less accumulated depreciation and depletion

(25,841)

(25,365)

Property, plant and equipment, net

30,839

30,835

Goodwill

166

166

Other assets, including intangibles - net

897

838

Total assets

42,513

41,199

Liabilities

Current liabilities

121

121

Notes and loans payable

Accounts payable and accrued liabilities (a) (note 7)

6,968

6,231

Income taxes payable

17

251

Total current liabilities

7,106

6,603

Long-term debt (c) (note 6)

4,006

4,011

Other long-term obligations (note 7)

3,860

3,851

Deferred income tax liabilities

4,429

4,512

Total liabilities

19,401

18,977

Shareholders' equity

992

992

Common shares at stated value (d) (note 9)

Earnings reinvested

22,781

21,907

Accumulated other comprehensive income (loss) (note 10)

(661)

(677)

Total shareholders' equity

23,112

22,222

Total liabilities and shareholders' equity

42,513

41,199

(a) Accounts receivable - net included net amounts receivable from related parties.

696

1,048

(b) Investments and long-term receivables included amounts from related parties.

271

283

(c) Long-term debt included amounts to related parties.

3,447

3,447

(d) Number of common shares authorized (millions).

1,100

1,100

Number of common shares outstanding (millions).

536

536

The information in the notes to consolidated financial statements is an integral part of these statements.

Approved by the directors April 29, 2024

/s/ Bradley W. Corson

/s/ Daniel E. Lyons

Chairman, president and

Senior vice-president,

chief executive officer

finance and administration, and controller

4

IMPERIAL OIL LIMITED

Consolidated statement of shareholders' equity (U.S. GAAP, unaudited)

Three Months

to March 31

millions of Canadian dollars

2024

2023

Common shares at stated value (note 9)

At beginning of period

992

1,079

Share purchases at stated value

-

-

At end of period

992

1,079

Earnings reinvested

At beginning of period

21,907

21,846

Net income (loss) for the period

1,195

1,248

Share purchases in excess of stated value

-

-

Dividends declared

(321)

(257)

At end of period

22,781

22,837

Accumulated other comprehensive income (loss) (note 10)

At beginning of period

(677)

(512)

Other comprehensive income (loss)

16

31

At end of period

(661)

(481)

Shareholders' equity at end of period

23,112

23,435

The information in the notes to consolidated financial statements is an integral part of these statements.

5

IMPERIAL OIL LIMITED

Consolidated statement of cash flows (U.S. GAAP, unaudited)

Three Months

to March 31

millions of Canadian dollars

2024

2023

Operating activities

Net income (loss)

1,195

1,248

Adjustments for non-cash items:

Depreciation and depletion

490

490

(Gain) loss on asset sales (note 3)

(2)

(9)

Deferred income taxes and other

(164)

(56)

Changes in operating assets and liabilities:

Accounts receivable

(722)

436

Inventories, materials, supplies and prepaid expenses

(196)

(479)

Income taxes payable

(234)

(2,077)

Accounts payable and accrued liabilities

707

(255)

All other items - net (b)

2

(119)

Cash flows from (used in) operating activities

1,076

(821)

Investing activities

Additions to property, plant and equipment Proceeds from asset sales (note 3)

Loans to equity companies - net

Cash flows from (used in) investing activities

  1. (429)
  • 14
    12 1
  1. (414)

Financing activities

Finance lease obligations - reduction (note 6)

(5)

(5)

Dividends paid

(278)

(266)

Common shares purchased (note 9)

-

-

Cash flows from (used in) financing activities

(283)

(271)

Increase (decrease) in cash and cash equivalents

312

(1,506)

Cash and cash equivalents at beginning of period

864

3,749

Cash and cash equivalents at end of period (a)

1,176

2,243

(a) Cash equivalents are all highly liquid securities with maturity of three months or less.

(b) Included contributions to registered pension plans.

(37)

(42)

Income taxes (paid) refunded.

(700)

(2,632)

Interest (paid), net of capitalization.

(11)

(21)

The information in the notes to consolidated financial statements is an integral part of these statements.

6

IMPERIAL OIL LIMITED

Notes to consolidated financial statements (unaudited)

1. Basis of financial statement preparation

These unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) and follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual consolidated financial statements filed with the U.S. Securities and Exchange Commission (SEC) in the company's 2023 annual report on Form 10-K. In the opinion of the company, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature.

The company's exploration and production activities are accounted for under the "successful efforts" method.

The results for the three months ended March 31, 2024, are not necessarily indicative of the operations to be expected for the full year.

All amounts are in Canadian dollars unless otherwise indicated.

7

IMPERIAL OIL LIMITED

2. Business segments

Three Months to March 31

Upstream

Downstream

Chemical

millions of Canadian dollars

2024

2023

2024

2023

2024

2023

Revenues and other income

42

76

11,879

11,639

328

342

Revenues (a) (b)

Intersegment sales

4,122

3,622

1,748

1,823

90

91

Investment and other income (note 3)

4

2

12

20

1

-

4,168

3,700

13,639

13,482

419

433

Expenses

1

1

-

-

-

-

Exploration

Purchases of crude oil and products

1,813

1,543

11,591

11,196

260

274

Production and manufacturing

1,188

1,287

421

411

53

58

Selling and general

-

-

162

157

26

26

Federal excise tax and fuel charge

-

-

590

528

1

1

Depreciation and depletion

432

434

45

45

4

4

Non-service pension and postretirement benefit

-

-

-

-

-

-

Financing (note 5)

1

-

-

-

-

-

Total expenses

3,435

3,265

12,809

12,337

344

363

Income (loss) before income taxes

733

435

830

1,145

75

70

Income tax expense (benefit)

175

105

199

275

18

17

Net income (loss)

558

330

631

870

57

53

Cash flows from (used in) operating activities

891

(398)

7

(419)

(3)

(32)

Capital and exploration expenditures (c)

290

321

153

74

5

4

Total assets as at March 31

28,661

29,059

11,126

9,535

517

477

Three Months to March 31

Corporate and other

Eliminations

Consolidated

millions of Canadian dollars

2024

2023

2024

2023

2024

2023

Revenues and other income

-

-

-

-

12,249

12,057

Revenues (a) (b)

Intersegment sales

-

-

(5,960)

(5,536)

-

-

Investment and other income (note 3)

17

42

-

-

34

64

17

42

(5,960)

(5,536)

12,283

12,121

Expenses

-

-

-

-

1

1

Exploration

Purchases of crude oil and products

-

-

(5,958)

(5,535)

7,706

7,478

Production and manufacturing

2

-

-

-

1,664

1,756

Selling and general

60

4

(2)

(1)

246

186

Federal excise tax and fuel charge

-

-

-

-

591

529

Depreciation and depletion

9

7

-

-

490

490

Non-service pension and postretirement benefit

1

20

-

-

1

20

Financing (note 5)

11

16

-

-

12

16

Total expenses

83

47

(5,960)

(5,536)

10,711

10,476

Income (loss) before income taxes

(66)

(5)

-

-

1,572

1,645

Income tax expense (benefit)

(15)

-

-

-

377

397

Net income (loss)

(51)

(5)

-

-

1,195

1,248

Cash flows from (used in) operating activities

181

28

-

-

1,076

(821)

Capital and exploration expenditures (c)

48

30

-

-

496

429

Total assets as at March 31

2,699

3,815

(490)

(771)

42,513

42,115

8

IMPERIAL OIL LIMITED

  1. Includes export sales to the United States of $2,378 million (2023 - $2,375 million).
  2. Revenues include both revenue within the scope of ASC 606 and outside the scope of ASC 606. Trade receivables in "Accounts receivable - net" reported on the Consolidated balance sheet include both receivables within the scope of ASC 606 and outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives. Contractual terms, credit quality and type of customer are generally similar between contracts within the scope of ASC 606 and those outside it.

Three Months

Revenues

to March 31

millions of Canadian dollars

2024

2023

Revenue from contracts with customers

9,729

10,520

Revenue outside the scope of ASC 606

2,520

1,537

Total

12,249

12,057

  1. Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions and the company's share of similar costs for equity companies. CAPEX excludes the purchase of carbon emission credits.

9

IMPERIAL OIL LIMITED

3. Investment and other income

Investment and other income included gains and losses on asset sales as follows:

Three Months

to March 31

millions of Canadian dollars

2024

2023

Proceeds from asset sales

4

14

Book value of asset sales

2

5

Gain (loss) on asset sales, before tax

2

9

Gain (loss) on asset sales, after tax

2

8

4. Employee retirement benefits

The components of net benefit cost were as follows:

Three Months

to March 31

millions of Canadian dollars

2024

2023

Pension benefits:

Service cost

46

41

Interest cost

91

93

Expected return on plan assets

(113)

(93)

Amortization of prior service cost

7

4

Amortization of actuarial loss (gain)

12

11

Net benefit cost

43

56

Other postretirement benefits:

Service cost

4

3

Interest cost

6

7

Amortization of actuarial loss (gain)

(2)

(2)

Net benefit cost

8

8

5. Financing costs

Three Months

to March 31

millions of Canadian dollars

2024

2023

Debt-related interest

52

46

Capitalized interest

(41)

(30)

Net interest expense

11

16

Other interest

1

-

Total financing

12

16

10

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Disclaimer

Imperial Oil Ltd. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 19:05:05 UTC.