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
- (429)
-
14
12 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
- Includes export sales to the United States of $2,378 million (2023 - $2,375 million).
- 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 |
- 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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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.