UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 20222023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___ to ___
Commission file number 0-12014
IMPERIAL OIL LIMITED
(Exact name of registrant as specified in its charter)
Canada 98-0017682
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
505 Quarry Park Boulevard S.E. Calgary, Alberta, Canada T2C 5N1
(Address of principal executive offices) (Postal Code)
1-800-567-3776
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol
Name of each exchange on
which registered
NoneNone
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ✓No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ✓No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act of 1934.
 Large accelerated filer ✓ Smaller reporting company
 Non-accelerated filer Emerging growth company
 Accelerated filer  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ___
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act of 1934).
Yes No ✓

The number of common shares outstanding, as of September 30, 20222023 was 611,515,571.566,667,118.



IMPERIAL OIL LIMITED
Table of contents
Page
Item 5. Other information
Item 6. Exhibits
In this report, all dollar amounts are expressed in Canadian dollars unless otherwise stated. This report should be read in conjunction with the company’s annual report on Form 10-K for the year ended December 31, 2021.2022. 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.
In this report, unless the context otherwise indicates, reference to “the company” or “Imperial” includes Imperial Oil Limited and its subsidiaries.
2


IMPERIAL OIL LIMITED
PART I. FINANCIAL INFORMATION
Item 1. Financial statements
Consolidated statement of income (U.S. GAAP, unaudited)
        Third Quarter
       Nine Months
       to September 30
       Third Quarter
       Nine Months
       to September 30
millions of Canadian dollarsmillions of Canadian dollars2022 2021 2022 2021 millions of Canadian dollars2023 2022 2023 2022 
Revenues and other incomeRevenues and other income  Revenues and other income 
Revenues (a)
Revenues (a)
15,071 10,214 45,013 25,213 
Revenues (a)
13,873 15,071 37,694 45,013 
Investment and other income (note 3, 11)
153 19 204 65 
Investment and other income (note 3)
Investment and other income (note 3)
47 153 166 204 
Total revenues and other incomeTotal revenues and other income15,224 10,233 45,217 25,278 Total revenues and other income13,920 15,224 37,860 45,217 
ExpensesExpenses  Expenses 
ExplorationExploration1 4 Exploration1 3 
Purchases of crude oil and products (b)
Purchases of crude oil and products (b)
9,478 6,298 28,849 15,052 
Purchases of crude oil and products (b)
8,748 9,478 24,082 28,849 
Production and manufacturing (c)
Production and manufacturing (c)
1,872 1,525 5,439 4,579 
Production and manufacturing (c)
1,666 1,872 5,207 5,439 
Selling and general (c)
Selling and general (c)
209 180 625 569 
Selling and general (c)
237 209 629 625 
Federal excise tax and fuel chargeFederal excise tax and fuel charge584 535 1,616 1,404 Federal excise tax and fuel charge654 584 1,781 1,616 
Depreciation and depletionDepreciation and depletion555 488 1,432 1,432 Depreciation and depletion475 555 1,418 1,432 
Non-service pension and postretirement benefitNon-service pension and postretirement benefit4 11 13 32 Non-service pension and postretirement benefit20 60 13 
Financing (d) (note 5)
Financing (d) (note 5)
16 34 32 
Financing (d) (note 5)
19 16 51 34 
Total expensesTotal expenses12,719 9,044 38,012 23,106 Total expenses11,820 12,719 33,231 38,012 
Income (loss) before income taxesIncome (loss) before income taxes2,505 1,189 7,205 2,172 Income (loss) before income taxes2,100 2,505 4,629 7,205 
Income taxesIncome taxes474 281 1,592 506 Income taxes499 474 1,105 1,592 
Net income (loss)Net income (loss)2,031 908 5,613 1,666 Net income (loss)1,601 2,031 3,524 5,613 
Per share information (Canadian dollars)
Per share information (Canadian dollars)
 
Per share information (Canadian dollars)
 
Net income (loss) per common share - basic (note 9)
Net income (loss) per common share - basic (note 9)
3.25 1.30 8.60 2.32 
Net income (loss) per common share - basic (note 9)
2.77 3.25 6.05 8.60 
Net income (loss) per common share - diluted (note 9)
Net income (loss) per common share - diluted (note 9)
3.24 1.29 8.58 2.31 
Net income (loss) per common share - diluted (note 9)
2.76 3.24 6.04 8.58 
(a) Amounts from related parties included in revenues.(a) Amounts from related parties included in revenues.4,454 2,731 13,588 5,644 (a) Amounts from related parties included in revenues.3,553 4,454 10,245 13,588 
(b) Amounts to related parties included in purchases of crude oil and products.(b) Amounts to related parties included in purchases of crude oil and products.1,086 828 2,865 2,009 (b) Amounts to related parties included in purchases of crude oil and products.1,228 1,086 3,270 2,865 
(c) Amounts to related parties included in production and manufacturing,
and selling and general expenses.
(c) Amounts to related parties included in production and manufacturing,
and selling and general expenses.
120 95 354 317 (c) Amounts to related parties included in production and manufacturing,
and selling and general expenses.
121 120 381 354 
(d) Amounts to related parties included in financing, (note 5).28 45 25 
(d) Amounts to related parties included in financing.(d) Amounts to related parties included in financing.44 28 124 45 
The information in the notes to consolidated financial statements is an integral part of these statements.The information in the notes to consolidated financial statements is an integral part of these statements.The information in the notes to consolidated financial statements is an integral part of these statements.

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IMPERIAL OIL LIMITED
Consolidated statement of comprehensive income (U.S. GAAP, unaudited)
        Third Quarter
        Nine Months
        to September 30
       Third Quarter
       Nine Months
       to September 30
millions of Canadian dollarsmillions of Canadian dollars2022 2021 2022 2021 millions of Canadian dollars2023 2022 2023 2022 
Net income (loss)Net income (loss)2,031 908 5,613 1,666 Net income (loss)1,601 2,031 3,524 5,613 
Other comprehensive income (loss), net of income taxesOther comprehensive income (loss), net of income taxes  Other comprehensive income (loss), net of income taxes 
Postretirement benefits liability adjustment (excluding amortization)Postretirement benefits liability adjustment (excluding amortization) — 24 54 Postretirement benefits liability adjustment (excluding amortization) — 21 24 
Amortization of postretirement benefits liability adjustment
included in net benefit costs
Amortization of postretirement benefits liability adjustment
included in net benefit costs
21 33 63 99 Amortization of postretirement benefits liability adjustment
included in net benefit costs
9 21 29 63 
Total other comprehensive income (loss)Total other comprehensive income (loss)21 33 87 153 Total other comprehensive income (loss)9 21 50 87 
Comprehensive income (loss)Comprehensive income (loss)2,052 941 5,700 1,819 Comprehensive income (loss)1,610 2,052 3,574 5,700 
The information in the notes to consolidated financial statements is an integral part of these statements.The information in the notes to consolidated financial statements is an integral part of these statements.The information in the notes to consolidated financial statements is an integral part of these statements.
4


IMPERIAL OIL LIMITED
Consolidated balance sheet (U.S. GAAP, unaudited)
As at
Sep 30
As at
Dec 31
millions of Canadian dollarsmillions of Canadian dollars
As at
Sept 30
2022
As at
Dec 31
2021
millions of Canadian dollars20232022
AssetsAssets  Assets 
Current assetsCurrent assets  Current assets 
Cash and cash equivalentsCash and cash equivalents3,576 2,153 Cash and cash equivalents2,716 3,749 
Accounts receivable - net (a)
Accounts receivable - net (a)
5,179 3,869 
Accounts receivable - net (a)
5,390 4,719 
Inventories of crude oil and productsInventories of crude oil and products1,495 1,102 Inventories of crude oil and products1,744 1,514 
Materials, supplies and prepaid expensesMaterials, supplies and prepaid expenses755 689 Materials, supplies and prepaid expenses910 754 
Total current assetsTotal current assets11,005 7,813 Total current assets10,760 10,736 
Investments and long-term receivables (b)
Investments and long-term receivables (b)
883 757 
Investments and long-term receivables (b)
1,048 893 
Property, plant and equipment,Property, plant and equipment,53,763 56,762 Property, plant and equipment,55,780 54,568 
less accumulated depreciation and depletionless accumulated depreciation and depletion(23,750)(25,522)less accumulated depreciation and depletion(25,399)(24,062)
Property, plant and equipment, net (note 11)
30,013 31,240 
Property, plant and equipment, netProperty, plant and equipment, net30,381 30,506 
GoodwillGoodwill166 166 Goodwill166 166 
Other assets, including intangibles - netOther assets, including intangibles - net919 806 Other assets, including intangibles - net1,231 1,223 
Total assetsTotal assets42,986 40,782 Total assets43,586 43,524 
LiabilitiesLiabilities  Liabilities 
Current liabilitiesCurrent liabilities  Current liabilities 
Notes and loans payableNotes and loans payable122 122 Notes and loans payable121 122 
Accounts payable and accrued liabilities (a) (note 7)
Accounts payable and accrued liabilities (a) (note 7)
6,498 5,184 
Accounts payable and accrued liabilities (a) (note 7)
7,234 6,194 
Income taxes payableIncome taxes payable2,314 248 Income taxes payable418 2,582 
Total current liabilitiesTotal current liabilities8,934 5,554 Total current liabilities7,773 8,898 
Long-term debt (c) (note 6)
Long-term debt (c) (note 6)
4,038 5,054 
Long-term debt (c) (note 6)
4,017 4,033 
Other long-term obligations (note 7)
Other long-term obligations (note 7)
3,428 3,897 
Other long-term obligations (note 7)
3,462 3,467 
Deferred income tax liabilitiesDeferred income tax liabilities4,278 4,542 Deferred income tax liabilities4,526 4,713 
Total liabilitiesTotal liabilities20,678 19,047 Total liabilities19,778 21,111 
Shareholders’ equityShareholders’ equity  Shareholders’ equity 
Common shares at stated value (d) (note 9)
Common shares at stated value (d) (note 9)
1,129 1,252 
Common shares at stated value (d) (note 9)
1,047 1,079 
Earnings reinvestedEarnings reinvested22,269 21,660 Earnings reinvested23,223 21,846 
Accumulated other comprehensive income (loss) (note 10)
Accumulated other comprehensive income (loss) (note 10)
(1,090)(1,177)
Accumulated other comprehensive income (loss) (note 10)
(462)(512)
Total shareholders’ equityTotal shareholders’ equity22,308 21,735 Total shareholders’ equity23,808 22,413 
Total liabilities and shareholders’ equityTotal liabilities and shareholders’ equity42,986 40,782 Total liabilities and shareholders’ equity43,586 43,524 
(a) Accounts receivable - net included net amounts receivable from related parties of $1,534 million (2021 - $1,031 million).
(b) Investments and long-term receivables included amounts from related parties of $289 million (2021 - $298 million).
(c) Long-term debt included amounts to related parties of $3,447 million (2021 - $4,447 million).
(d) Number of common shares authorized and outstanding were 1,100 million and 612 million, respectively (2021 - 1,100 million and 678 million, respectively).
(a) Accounts receivable - net included net amounts receivable from related parties of $1,139 million (2022 - $1,108 million).(a) Accounts receivable - net included net amounts receivable from related parties of $1,139 million (2022 - $1,108 million).
(b) Investments and long-term receivables included amounts from related parties of $285 million (2022 - $288 million).(b) Investments and long-term receivables included amounts from related parties of $285 million (2022 - $288 million).
(c) Long-term debt included amounts to related parties of $3,447 million (2022 - $3,447 million).(c) Long-term debt included amounts to related parties of $3,447 million (2022 - $3,447 million).
(d) Number of common shares authorized and outstanding were 1,100 million and 567 million, respectively (2022 - 1,100 million and 584 million, respectively).(d) Number of common shares authorized and outstanding were 1,100 million and 567 million, respectively (2022 - 1,100 million and 584 million, respectively).
The information in the notes to consolidated financial statements is an integral part of these statements.The information in the notes to consolidated financial statements is an integral part of these statements.The information in the notes to consolidated financial statements is an integral part of these statements.

5


IMPERIAL OIL LIMITED
Consolidated statement of shareholders’ equity (U.S. GAAP, unaudited)
        Third Quarter
        Nine Months
        to September 30
       Third Quarter
       Nine Months
       to September 30
millions of Canadian dollarsmillions of Canadian dollars2022 2021 2022 2021 millions of Canadian dollars2023 2022 2023 2022 
Common shares at stated value (note 9)
Common shares at stated value (note 9)
  
Common shares at stated value (note 9)
 
At beginning of periodAt beginning of period1,177 1,302 1,252 1,357 At beginning of period1,079 1,177 1,079 1,252 
Share purchases at stated valueShare purchases at stated value(48)(16)(123)(71)Share purchases at stated value(32)(48)(32)(123)
At end of periodAt end of period1,129 1,286 1,129 1,286 At end of period1,047 1,129 1,047 1,129 
Earnings reinvestedEarnings reinvestedEarnings reinvested
At beginning of periodAt beginning of period21,913 21,336 21,660 22,050 At beginning of period23,220 21,913 21,846 21,660 
Net income (loss) for the periodNet income (loss) for the period2,031 908 5,613 1,666 Net income (loss) for the period1,601 2,031 3,524 5,613 
Share purchases in excess of stated valueShare purchases in excess of stated value(1,464)(297)(4,338)(1,413)Share purchases in excess of stated value(1,310)(1,464)(1,310)(4,338)
Dividends declaredDividends declared(211)(188)(666)(544)Dividends declared(288)(211)(837)(666)
At end of periodAt end of period22,269 21,759 22,269 21,759 At end of period23,223 22,269 23,223 22,269 
Accumulated other comprehensive income (loss) (note 10)
Accumulated other comprehensive income (loss) (note 10)
  
Accumulated other comprehensive income (loss) (note 10)
 
At beginning of periodAt beginning of period(1,111)(1,869)(1,177)(1,989)At beginning of period(471)(1,111)(512)(1,177)
Other comprehensive income (loss)Other comprehensive income (loss)21 33 87 153 Other comprehensive income (loss)9 21 50 87 
At end of periodAt end of period(1,090)(1,836)(1,090)(1,836)At end of period(462)(1,090)(462)(1,090)
Shareholders’ equity at end of periodShareholders’ equity at end of period22,308 21,209 22,308 21,209 Shareholders’ equity at end of period23,808 22,308 23,808 22,308 
The information in the notes to consolidated financial statements is an integral part of these statements.

6


IMPERIAL OIL LIMITED
Consolidated statement of cash flows (U.S. GAAP, unaudited)
       Third Quarter
       Nine Months
       to September 30
Inflow (outflow)        Third Quarter
        Nine Months
        to September 30
millions of Canadian dollarsmillions of Canadian dollars2022 2021 2022 2021 millions of Canadian dollars2023 2022 2023 2022 
Operating activitiesOperating activities  Operating activities 
Net income (loss)Net income (loss)2,031 908 5,613 1,666 Net income (loss)1,601 2,031 3,524 5,613 
Adjustments for non-cash items:Adjustments for non-cash items:Adjustments for non-cash items:
Depreciation and depletionDepreciation and depletion555 488 1,432 1,432 Depreciation and depletion475 555 1,418 1,432 
(Gain) loss on asset sales (note 3, 11)
(131)(12)(155)(39)
(Gain) loss on asset sales (note 3)
(Gain) loss on asset sales (note 3)
3 (131)(19)(155)
Deferred income taxes and otherDeferred income taxes and other122 (120)(358)16 Deferred income taxes and other(168)122 (239)(358)
Changes in operating assets and liabilities:Changes in operating assets and liabilities:  Changes in operating assets and liabilities: 
Accounts receivableAccounts receivable1,648 (708)(1,322)(1,952)Accounts receivable(805)1,648 (671)(1,322)
Inventories, materials, supplies and prepaid expensesInventories, materials, supplies and prepaid expenses(70)(199)(461)(300)Inventories, materials, supplies and prepaid expenses(330)(70)(389)(461)
Income taxes payableIncome taxes payable296 227 1,608 269 Income taxes payable234 296 (2,164)1,608 
Accounts payable and accrued liabilitiesAccounts payable and accrued liabilities(1,328)1,123 1,315 2,362 Accounts payable and accrued liabilities1,314 (1,328)1,011 1,315 
All other items - net (b)
All other items - net (b)
(34)240 13 390 
All other items - net (b)
35 (34)(48)13 
Cash flows from (used in) operating activitiesCash flows from (used in) operating activities3,089 1,947 7,685 3,844 Cash flows from (used in) operating activities2,359 3,089 2,423 7,685 
Investing activitiesInvesting activities  Investing activities 
Additions to property, plant and equipmentAdditions to property, plant and equipment(397)(276)(1,034)(684)Additions to property, plant and equipment(387)(397)(1,315)(1,034)
Proceeds from asset sales (note 3, 11)
760 15 886 57 
Proceeds from asset sales (note 3)
Proceeds from asset sales (note 3)
6 760 29 886 
Additional investmentsAdditional investments(6)— (6)— Additional investments (6) (6)
Loans to equity companies - netLoans to equity companies - net7 9 14 Loans to equity companies - net1 3 
Cash flows from (used in) investing activitiesCash flows from (used in) investing activities364 (259)(145)(613)Cash flows from (used in) investing activities(380)364 (1,283)(145)
Financing activitiesFinancing activities  Financing activities 
Short-term debt - net (75) (111)
Long-term debt - reductions (note 6)
(1,000)— (1,000)— 
Reduction in finance lease obligations (note 6)
(5)(6)(16)(14)
Long-term debt - reduction (note 6)
Long-term debt - reduction (note 6)
 (1,000) (1,000)
Finance lease obligations - reduction (note 6)
Finance lease obligations - reduction (note 6)
(5)(5)(16)(16)
Dividends paidDividends paid(227)(195)(640)(518)Dividends paid(292)(227)(815)(640)
Common shares purchased (note 9)
Common shares purchased (note 9)
(1,512)(313)(4,461)(1,484)
Common shares purchased (note 9)
(1,342)(1,512)(1,342)(4,461)
Cash flows from (used in) financing activitiesCash flows from (used in) financing activities(2,744)(589)(6,117)(2,127)Cash flows from (used in) financing activities(1,639)(2,744)(2,173)(6,117)
Increase (decrease) in cash709 1,099 1,423 1,104 
Cash at beginning of period2,867 776 2,153 771 
Cash at end of period (a)
3,576 1,875 3,576 1,875 
(a) Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are all highly liquid securities with maturity of
three months or less when purchased.
Increase (decrease) in cash and cash equivalentsIncrease (decrease) in cash and cash equivalents340 709 (1,033)1,423 
Cash and cash equivalents at beginning of periodCash and cash equivalents at beginning of period2,376 2,867 3,749 2,153 
Cash and cash equivalents at end of period (a)
Cash and cash equivalents at end of period (a)
2,716 3,576 2,716 3,576 
(a) Cash equivalents are all highly liquid securities with maturity of three months or less.(a) Cash equivalents are all highly liquid securities with maturity of three months or less.
(b) Included contributions to registered pension plans.(b) Included contributions to registered pension plans.(41)(43)(137)(113)(b) Included contributions to registered pension plans.(43)(41)(129)(137)
Income taxes (paid) refunded.Income taxes (paid) refunded.(64)32 (339)60 Income taxes (paid) refunded.(438)(64)(3,627)(339)
Interest (paid), net of capitalization.Interest (paid), net of capitalization.(19)(5)(41)(32)Interest (paid), net of capitalization.(15)(19)(52)(41)
The information in the notes to consolidated financial statements is an integral part of these statements.The information in the notes to consolidated financial statements is an integral part of these statements.The information in the notes to consolidated financial statements is an integral part of these statements.
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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 20212022 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 nine months ended September 30, 2022,2023, are not necessarily indicative of the operations to be expected for the full year.
All amounts are in Canadian dollars unless otherwise indicated.
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IMPERIAL OIL LIMITED

2.    Business segments
Third QuarterThird Quarter       Upstream       Downstream        ChemicalThird Quarter      Upstream      Downstream       Chemical
millions of Canadian dollarsmillions of Canadian dollars202220212022202120222021millions of Canadian dollars202320222023202220232022
Revenues and other incomeRevenues and other incomeRevenues and other income
Revenues (a) (b)
Revenues (a) (b)
1561,01514,5378,813378386
Revenues (a) (b)
43 156 13,540 14,537 290 378 
Intersegment sales (c)
Intersegment sales (c)
4,6653,1371,69336614291
Intersegment sales (c)
4,768 4,665 1,560 1,693 92 142 
Investment and other income (note 3, 11)
128618
Investment and other income (note 3)
Investment and other income (note 3)
(4)128 12  — 
4,9494,15216,2369,197520477 4,807 4,949 15,112 16,236 382 520 
ExpensesExpenses      Expenses 
ExplorationExploration12Exploration1  —  — 
Purchases of crude oil and products (c)
Purchases of crude oil and products (c)
1,9371,90213,6867,745354244
Purchases of crude oil and products (c)
1,852 1,937 13,061 13,686 254 354 
Production and manufacturingProduction and manufacturing1,3811,1204193567249Production and manufacturing1,187 1,381 405 419 74 72 
Selling and generalSelling and general1741411721Selling and general — 177 174 21 17 
Federal excise tax and fuel chargeFederal excise tax and fuel charge5835351Federal excise tax and fuel charge — 653 583 1 
Depreciation and depletionDepreciation and depletion501439443944Depreciation and depletion418 501 46 44 2 
Non-service pension and postretirement benefitNon-service pension and postretirement benefitNon-service pension and postretirement benefit —  —  — 
Financing (note 5)
Financing (note 5)
Financing (note 5)
3 —  —  — 
Total expensesTotal expenses3,8203,46314,9068,816448318Total expenses3,461 3,820 14,342 14,906 352 448 
Income (loss) before income taxesIncome (loss) before income taxes1,1296891,33038172159Income (loss) before income taxes1,346 1,129 770 1,330 30 72 
Income tax expense (benefit)Income tax expense (benefit)143165318881838Income tax expense (benefit)318 143 184 318 7 18 
Net income (loss) (c)
Net income (loss) (c)
9865241,01229354121
Net income (loss) (c)
1,028 986 586 1,012 23 54 
Cash flows from (used in) operating activities (c)
Cash flows from (used in) operating activities (c)
1,2802,5081,532(733)109157
Cash flows from (used in) operating activities (c)
1,771 1,280 378 1,532 74 109 
Capital and exploration expenditures (d)(c)
Capital and exploration expenditures (d)(c)
3091516412022
Capital and exploration expenditures (d)(c)
244 309 103 64 2 
Third QuarterThird QuarterCorporate and other       Eliminations        ConsolidatedThird QuarterCorporate and other      Eliminations       Consolidated
millions of Canadian dollarsmillions of Canadian dollars202220212022202120222021millions of Canadian dollars202320222023202220232022
Revenues and other incomeRevenues and other incomeRevenues and other income
Revenues (a) (b)
Revenues (a) (b)
15,07110,214
Revenues (a) (b)
 —  — 13,873 15,071 
Intersegment sales (c)
Intersegment sales (c)
(6,500)(3,594)
Intersegment sales (c)
 — (6,420)(6,500) — 
Investment and other income (note 3, 11)
19115319
Investment and other income (note 3)
Investment and other income (note 3)
39 19  — 47 153 
191(6,500)(3,594)15,22410,233 39 19 (6,420)(6,500)13,920 15,224 
ExpensesExpenses      Expenses  
ExplorationExploration12Exploration —  — 1 
Purchases of crude oil and products (c)
Purchases of crude oil and products (c)
(6,499)(3,593)9,4786,298
Purchases of crude oil and products (c)
 — (6,419)(6,499)8,748 9,478 
Production and manufacturingProduction and manufacturing1,8721,525Production and manufacturing —  — 1,666 1,872 
Selling and generalSelling and general1919(1)(1)209180Selling and general40 19 (1)(1)237 209 
Federal excise tax and fuel chargeFederal excise tax and fuel charge584535Federal excise tax and fuel charge —  — 654 584 
Depreciation and depletionDepreciation and depletion66555488Depreciation and depletion9  — 475 555 
Non-service pension and postretirement benefitNon-service pension and postretirement benefit411411Non-service pension and postretirement benefit20  — 20 
Financing (note 5)
Financing (note 5)
165165
Financing (note 5)
16 16  — 19 16 
Total expensesTotal expenses4541(6,500)(3,594)12,7199,044Total expenses85 45 (6,420)(6,500)11,820 12,719 
Income (loss) before income taxesIncome (loss) before income taxes(26)(40)2,5051,189Income (loss) before income taxes(46)(26) — 2,100 2,505 
Income tax expense (benefit)Income tax expense (benefit)(5)(10)474281Income tax expense (benefit)(10)(5) — 499 474 
Net income (loss) (c)
Net income (loss) (c)
(21)(30)2,031908
Net income (loss) (c)
(36)(21) — 1,601 2,031 
Cash flows from (used in) operating activities (c)
Cash flows from (used in) operating activities (c)
168153,0891,947
Cash flows from (used in) operating activities (c)
136 168  — 2,359 3,089 
Capital and exploration expenditures (d)(c)
Capital and exploration expenditures (d)(c)
174392277
Capital and exploration expenditures (d)(c)
38 17  — 387 392 




9


IMPERIAL OIL LIMITED

(a)IncludedIncludes export sales to the United States of $3,176$2,180 million (2021(2022 - $1,803$3,176 million).
(b)Includes approximately 13%Revenues include both revenue within the scope of ASC 606 and 10% related to revenue outside the scope of ASC 606 “Revenue from Contracts with Customers” for the three months ended September 30, 2022 and September 30, 2021, respectively.. Trade receivables in Accounts"Accounts receivable – netnet" reported on the Balance SheetConsolidated balance sheet include both receivables within the scope of ASC 606 and those outside the scope of ASC 606.606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives. CreditContractual terms, credit quality, and type of customer are generally similar between those revenues and receivables within the scope of ASC 606 and those outside it.
(c)In the third quarter of 2021, the Downstream segment acquired a portion of Upstream crude inventory for $444 million. There was no earnings impact and the effects of this transaction have been eliminated for consolidation purposes.
Revenues        Third Quarter
millions of Canadian dollars2023 2022 
Revenue from contracts with customers12,271 13,223 
Revenue outside the scope of ASC 606
1,602 1,848 
Total13,873 15,071 
(d)(c)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.



10


IMPERIAL OIL LIMITED

Nine Months to September 30Nine Months to September 30        Upstream        Downstream       ChemicalNine Months to September 30        Upstream       Downstream        Chemical
millions of Canadian dollarsmillions of Canadian dollars202220212022202120222021millions of Canadian dollars202320222023202220232022
Revenues and other incomeRevenues and other incomeRevenues and other income
Revenues (a) (b)
Revenues (a) (b)
374 5,773 43,480 18,355 1,159 1,085 
Revenues (a) (b)
180 374 36,534 43,480 980 1,159 
Intersegment sales (c)
Intersegment sales (c)
14,923 5,800 5,550 1,927 395 223 
Intersegment sales (c)
11,909 14,923 4,748 5,550 272 395 
Investment and other income (note 3, 11)
135 36 51  
Investment and other income (note 3)
Investment and other income (note 3)
8 135 47 36  — 
15,432 11,579 49,066 20,333 1,554 1,309 12,097 15,432 41,329 49,066 1,252 1,554 
ExpensesExpensesExpenses
ExplorationExploration4  —  — Exploration3  —  — 
Purchases of crude oil and products (c)
Purchases of crude oil and products (c)
6,184 5,780 42,459 16,525 1,070 693 
Purchases of crude oil and products (c)
4,827 6,184 35,390 42,459 791 1,070 
Production and manufacturingProduction and manufacturing4,053 3,395 1,193 1,039 193 145 Production and manufacturing3,730 4,053 1,291 1,193 186 193 
Selling and generalSelling and general — 474 416 62 68 Selling and general — 494 474 69 62 
Federal excise tax and fuel chargeFederal excise tax and fuel charge — 1,615 1,404 1 — Federal excise tax and fuel charge — 1,778 1,615 3 
Depreciation and depletionDepreciation and depletion1,269 1,283 130 117 13 13 Depreciation and depletion1,250 1,269 135 130 10 13 
Non-service pension and postretirement benefitNon-service pension and postretirement benefit —  —  — Non-service pension and postretirement benefit —  —  — 
Financing (note 5)
Financing (note 5)
1  —  — 
Financing (note 5)
3  —  — 
Total expensesTotal expenses11,511 10,465 45,871 19,501 1,339 919 Total expenses9,813 11,511 39,088 45,871 1,059 1,339 
Income (loss) before income taxesIncome (loss) before income taxes3,921 1,114 3,195 832 215 390 Income (loss) before income taxes2,284 3,921 2,241 3,195 193 215 
Income tax expense (benefit)Income tax expense (benefit)807 264 761 187 52 93 Income tax expense (benefit)542 807 535 761 46 52 
Net income (loss) (c)
Net income (loss) (c)
3,114 850 2,434 645 163 297 
Net income (loss) (c)
1,742 3,114 1,706 2,434 147 163 
Cash flows from (used in) operating activities (c)
Cash flows from (used in) operating activities (c)
4,814 3,634 2,548 (135)240 330 
Cash flows from (used in) operating activities (c)
1,946 4,814 187 2,548 97 240 
Capital and exploration expenditures (d)(c)
Capital and exploration expenditures (d)(c)
764 366 201 308 5 
Capital and exploration expenditures (d)(c)
868 764 329 201 11 
Total assets as at September 30 (c) (note 11)
28,099 29,540 9,972 8,239 482 488 
Total assets as at September 30Total assets as at September 3028,356 28,099 10,912 9,972 441 482 
Nine Months to September 30Corporate and other       Eliminations        Consolidated
millions of Canadian dollars202220212022202120222021
Revenues and other income
Revenues (a) (b)
 —  — 45,013 25,213 
Intersegment sales (c)
 — (20,868)(7,950) — 
Investment and other income (note 3, 11)
33  — 204 65 
33 (20,868)(7,950)45,217 25,278 
Expenses
Exploration —  — 4 
Purchases of crude oil and products (c)
 — (20,864)(7,946)28,849 15,052 
Production and manufacturing —  — 5,439 4,579 
Selling and general93 89 (4)(4)625 569 
Federal excise tax and fuel charge —  — 1,616 1,404 
Depreciation and depletion20 19  — 1,432 1,432 
Non-service pension and postretirement benefit13 32  — 13 32 
Financing (note 5)
33 31  — 34 32 
Total expenses159 171 (20,868)(7,950)38,012 23,106 
Income (loss) before income taxes(126)(164) — 7,205 2,172 
Income tax expense (benefit)(28)(38) — 1,592 506 
Net income (loss) (c)
(98)(126) — 5,613 1,666 
Cash flows from (used in) operating activities (c)
83 15  — 7,685 3,844 
Capital and exploration expenditures (d)
32 19  — 1,002 699 
Total assets as at September 30 (c) (note 11)
4,704 2,778 (271)(170)42,986 40,875 

Nine Months to September 30Corporate and other      Eliminations       Consolidated
millions of Canadian dollars202320222023202220232022
Revenues and other income
Revenues (a) (b)
 —  — 37,694 45,013 
Intersegment sales
 — (16,929)(20,868) — 
Investment and other income (note 3)
111 33  — 166 204 
111 33 (16,929)(20,868)37,860 45,217 
Expenses
Exploration —  — 3 
Purchases of crude oil and products
 — (16,926)(20,864)24,082 28,849 
Production and manufacturing —  — 5,207 5,439 
Selling and general69 93 (3)(4)629 625 
Federal excise tax and fuel charge —  — 1,781 1,616 
Depreciation and depletion23 20  — 1,418 1,432 
Non-service pension and postretirement benefit60 13  — 60 13 
Financing (note 5)
48 33  — 51 34 
Total expenses200 159 (16,929)(20,868)33,231 38,012 
Income (loss) before income taxes(89)(126) — 4,629 7,205 
Income tax expense (benefit)(18)(28) — 1,105 1,592 
Net income (loss)(71)(98) — 3,524 5,613 
Cash flows from (used in) operating activities193 83  — 2,423 7,685 
Capital and exploration expenditures (c)
101 32  — 1,309 1,002 
Total assets as at September 304,346 4,704 (469)(271)43,586 42,986 
11


IMPERIAL OIL LIMITED

(a)IncludedIncludes export sales to the United States of $9,551$6,589 million (2021(2022 - $4,916$9,551 million).
(b)Includes approximately 12%Revenues include both revenue within the scope of ASC 606 and 5% related to revenue outside the scope of ASC 606 “Revenue from Contracts with Customers” for the nine months ended September 30, 2022 and September 30, 2021, respectively.. Trade receivables in Accounts"Accounts receivable – netnet" reported on the Balance SheetConsolidated balance sheet include both receivables within the scope of ASC 606 and those outside the scope of ASC 606.606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives. CreditContractual terms, credit quality, and type of customer are generally similar between those revenues and receivables within the scope of ASC 606 and those outside it.
(c)In the third quarter of 2021, the Downstream segment acquired a portion of Upstream crude inventory for $444 million. There was no earnings impact and the effects of this transaction have been eliminated for consolidation purposes.
Revenues
       Nine Months
       to September 30
millions of Canadian dollars2023 2022 
Revenue from contracts with customers33,713 39,958 
Revenue outside the scope of ASC 606
3,981 5,055 
Total37,694 45,013 
(d)(c)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.

12


IMPERIAL OIL LIMITED

3.    Investment and other income
Investment and other income included gains and losses on asset sales as follows:
          Third Quarter
           Nine Months
           to September 30
       Third Quarter
       Nine Months
       to September 30
millions of Canadian dollarsmillions of Canadian dollars2022 2021 2022 2021 millions of Canadian dollars2023 2022 2023 2022 
Proceeds from asset salesProceeds from asset sales854 15 886 57 Proceeds from asset sales6 854 29 886 
Book value of asset salesBook value of asset sales723 731 18 Book value of asset sales9 723 10 731 
Gain (loss) on asset sales, before tax (a)
Gain (loss) on asset sales, before tax (a)
131 12 155 39 
Gain (loss) on asset sales, before tax (a)
(3)131 19 155 
Gain (loss) on asset sales, after tax (a)
Gain (loss) on asset sales, after tax (a)
222 10 241 34 
Gain (loss) on asset sales, after tax (a)
(2)222 16 241 
(a)The third quarter of 2022 included a gain of $116 million ($208 million, after tax) from the sale of interests in XTO Energy Canada, which included the removal of a deferred tax liability.
(a)The third quarter of 2022 included a gain of $116 million ($208 million, after tax) from the sale of interests in XTO Energy Canada, which included the removal of a deferred tax liability.
(a)The third quarter of 2022 included a gain of $116 million ($208 million, after tax) from the sale of interests in XTO Energy Canada, which included the removal of a deferred tax liability.
4.    Employee retirement benefits
The components of net benefit cost were as follows:
          Third Quarter
         Nine Months
         to September 30
       Third Quarter
       Nine Months
       to September 30
millions of Canadian dollarsmillions of Canadian dollars2022 2021 2022 2021 millions of Canadian dollars2023 2022 2023 2022 
Pension benefits:Pension benefits:Pension benefits:
Service costService cost70 81 210 243 Service cost41 70 122 210 
Interest costInterest cost74 68 221 204 Interest cost94 74 280 221 
Expected return on plan assetsExpected return on plan assets(103)(107)(309)(321)Expected return on plan assets(94)(103)(280)(309)
Amortization of prior service costAmortization of prior service cost4 12 12 Amortization of prior service cost5 13 12 
Amortization of actuarial loss (gain)Amortization of actuarial loss (gain)21 36 64 108 Amortization of actuarial loss (gain)10 21 32 64 
Net benefit costNet benefit cost66 82 198 246 Net benefit cost56 66 167 198 
Other postretirement benefits:Other postretirement benefits:  Other postretirement benefits: 
Service costService cost6 17 21 Service cost3 9 17 
Interest costInterest cost6 18 17 Interest cost7 21 18 
Amortization of actuarial loss (gain)Amortization of actuarial loss (gain)2 7 12 Amortization of actuarial loss (gain)(2)(6)
Net benefit costNet benefit cost14 17 42 50 Net benefit cost8 14 24 42 
5.    Financing costs
        Third Quarter
        Nine Months
         to September 30
       Third Quarter
      Nine Months
      to September 30
millions of Canadian dollarsmillions of Canadian dollars2022 2021 2022 2021 millions of Canadian dollars2023 2022 2023 2022 
Debt-related interestDebt-related interest34 66 50 Debt-related interest53 34 148 66 
Capitalized interestCapitalized interest(18)(4)(33)(19)Capitalized interest(37)(18)(100)(33)
Net interest expenseNet interest expense16 33 31 Net interest expense16 16 48 33 
Other interestOther interest—  1 Other interest3 — 3 
Total financingTotal financing16 34 32 Total financing19 16 51 34 

During the second quarter of 2022, the company reduced its existing $500 million committed long-term line of credit to $250 million and extended the maturity date to June 30, 2023. The company also extended one of its $250 million committed long-term lines of credit to June 30, 2024. The company has not drawn on any of its outstanding $750 million of available credit facilities.
13


IMPERIAL OIL LIMITED

6.    Long-term debt
millions of Canadian dollarsAs at
Sept 30
As at
Dec 31
As at
Sep 30
As at
Dec 31
millions of Canadian dollarsmillions of Canadian dollars20222021millions of Canadian dollars2023 2022 
3,447 4,447 
Long-term debt (a)
3,447 3,447 
Finance leases
Finance leases
591 607 
Finance leases
570 586 
Total long-term debtTotal long-term debt4,038 5,054 Total long-term debt4,017 4,033 
(a)During the third quarter of 2022, the company decreased its long-term debt by $1 billion by partially repaying an existing facility with an affiliated company of ExxonMobil.
7.    Other long-term obligations
As at
Sept 30
As at
 Dec 31
As at
Sep 30
As at
Dec 31
millions of Canadian dollarsmillions of Canadian dollars20222021millions of Canadian dollars2023 2022 
Employee retirement benefits (a)
Employee retirement benefits (a)
1,328 1,362 
Employee retirement benefits (a)
876 902 
Asset retirement obligations and other environmental liabilities (b)
Asset retirement obligations and other environmental liabilities (b)
1,677 1,713 
Asset retirement obligations and other environmental liabilities (b)
2,189 2,150 
Share-based incentive compensation liabilitiesShare-based incentive compensation liabilities121 79 Share-based incentive compensation liabilities130 101 
Operating lease liability (c)
Operating lease liability (c)
121 147 
Operating lease liability (c)
122 151 
Other obligationsOther obligations181 596 Other obligations145 163 
Total other long-term obligationsTotal other long-term obligations3,428 3,897 Total other long-term obligations3,462 3,467 
(a)Total recorded employee retirement benefits obligations also included $56 million in current liabilities (2021 - $56 million).
(b)Total asset retirement obligations and other environmental liabilities also included $101 million in current liabilities (2021 - $102 million).
(c)Total operating lease liability also included $92 million in current liabilities (2021 - $102 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $49 million (2021 - $5 million).
(a)Total recorded employee retirement benefits obligations also included $63 million in current liabilities (2022 - $63 million).
(b)Total asset retirement obligations and other environmental liabilities also included $116 million in current liabilities (2022 - $116 million).
(c)Total operating lease liability also included $107 million in current liabilities (2022 - $100 million). In addition to the total operating lease liability, undiscounted commitments for leases not yet commenced totalled $55 million (2022 - $14 million).

(a)Total recorded employee retirement benefits obligations also included $63 million in current liabilities (2022 - $63 million).
(b)Total asset retirement obligations and other environmental liabilities also included $116 million in current liabilities (2022 - $116 million).
(c)Total operating lease liability also included $107 million in current liabilities (2022 - $100 million). In addition to the total operating lease liability, undiscounted commitments for leases not yet commenced totalled $55 million (2022 - $14 million).


14


IMPERIAL OIL LIMITED

8.    Financial and derivative instruments
Financial instruments
The fair value of the company’s financial instruments is determined by reference to various market data and other appropriate valuation techniques. There are no material differences between the fair value of the company’s financial instruments and the recorded carrying value. At September 30, 20222023 and December 31, 2021,2022, the fair value of long-term debt ($3,447 million, and $4,447 million respectively, excluding finance lease obligations) was primarily a level 2 measurement.
Derivative instruments
The company’s size, strong capital structure and the complementary nature of the Upstream, Downstream and Chemical businessesits business segments reduce the company’s enterprise-wide risk from changes in commodity prices and currency exchange rates. In addition, the company uses commodity-based contracts, including derivative instrumentsderivatives, to manage commodity price risk and to generate returns from trading. Commodity contracts held for trading purposes are presented in the Consolidated statement of income on a net basis in the line “Revenues” and in the Consolidated statement of cash flows in "Cash flow from (used in) operating activities". The company does not designate derivative instruments as a hedge for hedge accounting purposes.
Credit risk associated with the company’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The company maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.
The net notional long/(short) position of derivative instruments was:
As at
Sept 30
As at
Dec 31
As at
Sep 30
As at Dec 31
thousands of barrelsthousands of barrels20222021thousands of barrels20232022
CrudeCrude2,690 7,390 Crude3,280 1,800 
ProductsProducts(1,210)(560)Products(850)(350)
Realized and unrealized gain/(loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a before-tax basis:
      Third Quarter
    Nine Months
    to September 30
millions of Canadian dollars2022 2021 2022 2021 
Revenues105 (21)91 (30)
Purchases of crude oil and products —  (33)
Total105 (21)91 (63)













       Third Quarter
    Nine Months
    to September 30
millions of Canadian dollars2023 2022 2023 2022 
Revenues6 105 (7)91 


15


IMPERIAL OIL LIMITED

The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement iswere as follows:

At September 30, 2023
millions of Canadian dollars
Fair valueEffect of
counterparty
netting
Effect of
collateral
netting
Net
carrying
value
Level 1Level 2Level 3Total
Assets
Derivative assets (a)
24 33  57 (23)(1)33 
Liabilities
Derivative liabilities (b)
24 39  63 (23) 40 
(a)Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”, “Accounts receivable - net” and “Other assets, including intangibles - net”.
(b)Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities” and “Other long-term obligations”.
At September 30, 2022
millions of Canadian dollars
Fair valueEffect of
counterparty
netting
Effect of
collateral
netting
Net
carrying
value
Level 1Level 2Level 3Total
Assets
Derivative assets (a)
55 35  90 (27)(38)25 
Liabilities
Derivative liabilities (b)
17 16  33 (27) 6 
(a)Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”, “Accounts receivable - net” and “Other assets, including intangibles - net”.
(b)Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities” and “Other long-term obligations”.

At December 31, 2021
At December 31, 2022At December 31, 2022
millions of Canadian dollarsmillions of Canadian dollarsmillions of Canadian dollars
Fair valueEffect of
counterparty
netting
Effect of
collateral
netting
Net
carrying
value
Fair valueEffect of
counterparty
netting
Effect of
collateral
netting
Net
carrying
value
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
AssetsAssetsAssets
Derivative assets (a)
Derivative assets (a)
24 17 — 41 (31)— 10 
Derivative assets (a)
17 32 — 49 (27)— 22 
LiabilitiesLiabilitiesLiabilities
Derivative liabilities (b)
Derivative liabilities (b)
31 12 — 43 (31)(7)
Derivative liabilities (b)
21 20 — 41 (27)(4)10 
(a)Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”, “Accounts receivable - net” and “Other assets, including intangibles - net”.
(b)Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities” and “Other long-term obligations”.
(a)Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”, “Accounts receivable - net” and “Other assets, including intangibles - net”.
(b)Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities” and “Other long-term obligations”.
(a)Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”, “Accounts receivable - net” and “Other assets, including intangibles - net”.
(b)Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities” and “Other long-term obligations”.
At September 30, 20222023 and December 31, 2021,2022, the company had $36$21 million and $6$14 million, respectively, of collateral under a master netting arrangement not offset against the derivatives on the Consolidated balance sheet in “Accounts receivable - net”, primarily related to initial margin requirements.
16


IMPERIAL OIL LIMITED

9.    Common shares

thousands of shares

thousands of shares
As of
Sept 30
2022
 As of
Dec 31
2021
thousands of shares
As at
Sep 30
2023
As at
Dec 31
2022
AuthorizedAuthorized1,100,000 1,100,000 Authorized1,100,000 1,100,000 
Common shares outstanding611,516 678,080 
OutstandingOutstanding566,667 584,153 
The most recent 12-month normal course issuer bid program came into effect June 29, 20222023 under which Imperial continued its existing share purchase program. The program enabled the company to purchase up to a maximum of 31,833,80929,207,635 common shares (5 percent of the total shares on June 15, 2022)2023) which included shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of, the normal course issuer bid. As in the past, Exxon Mobil Corporation advised the company that it intended to participate to maintain its ownership percentage at approximately 69.6 percent.Imperial accelerated its share purchases under the normal course issuer bid program during the third quarter and, subsequent to the end of the third quarter, the program completed on October 21, 2022 19, 2023as a result of the company purchasing the maximum allowable number of shares under the program.
On May 6, 2022, the company commenced a substantial issuer bid pursuant to which it offered to purchase for cancellation up to $2.5 billion of its common shares through a modified Dutch auction and proportionate tender offer. The substantial issuer bid was completed on June 15, 2022, with the company taking up and paying for 32,467,532 common shares at a price of $77.00 per share, for an aggregate purchase of $2.5 billion and 4.9 percent of Imperial’s issued and outstanding shares at the close of business on May 2, 2022. This included 22,597,379 shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent.
The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of earnings reinvested.
On October 28, 202227, 2023, the company announced its intention to launch a substantial issuer bid pursuant to which the company will offer to purchase for cancellation up to $1.5 billion of its common shares. The substantial issuer bid will be made through a modified Dutch auction, with a tender price range to be determined by the company at the time of commencement of the offer. Shares may also be tendered by way of a proportionate tender, which will result in a shareholder maintaining their proportionate share ownership. ExxonMobil has advised Imperial that it intends to make a proportionate tender in connection with the offer in order to maintain its proportionate share ownership at approximately 69.6 percent following completion of the offer. Nothing in this report shall constitute an offer to purchase or a solicitation of an offer to sell any shares.
The company’s common share activities are summarized below:
Thousands of
 shares
Millions of
 dollars
Thousands of
 shares
Millions of
 dollars
Balance as at December 31, 2020734,077 1,357 
Issued under employee share-based awards— 
Purchases at stated value(56,004)(105)
Balance as at December 31, 2021Balance as at December 31, 2021678,080 1,252 Balance as at December 31, 2021678,080 1,252 
Issued under employee share-based awardsIssued under employee share-based awards  Issued under employee share-based awards— — 
Purchases at stated valuePurchases at stated value(66,564)(123)Purchases at stated value(93,927)(173)
Balance as at September 30, 2022611,516 1,129 
Balance as at December 31, 2022Balance as at December 31, 2022584,153 1,079 
Issued under employee share-based awardsIssued under employee share-based awards  
Purchases at stated valuePurchases at stated value(17,486)(32)
Balance as at September 30, 2023Balance as at September 30, 2023566,667 1,047 
17


IMPERIAL OIL LIMITED

The following table provides the calculation of basic and diluted earnings per common share and the dividends declared by the company on its outstanding common shares:
     Third Quarter
    Nine Months
    to September 30
      Third Quarter
    Nine Months
    to September 30
20222021202220212023202220232022
Net income (loss) per common share – basicNet income (loss) per common share – basicNet income (loss) per common share – basic
Net income (loss) (millions of Canadian dollars)
Net income (loss) (millions of Canadian dollars)
2,0319085,6131,666
Net income (loss) (millions of Canadian dollars)
1,6012,0313,5245,613
Weighted average number of common shares outstanding (millions of shares)
625.3700.0652.9719.4
Weighted-average number of common shares outstanding (millions of shares)
Weighted-average number of common shares outstanding (millions of shares)
578.0625.3582.1652.9
Net income (loss) per common share (dollars)
Net income (loss) per common share (dollars)
3.251.308.602.32
Net income (loss) per common share (dollars)
2.773.256.058.60
Net income (loss) per common share – dilutedNet income (loss) per common share – dilutedNet income (loss) per common share – diluted
Net income (loss) (millions of Canadian dollars)
Net income (loss) (millions of Canadian dollars)
2,0319085,6131,666
Net income (loss) (millions of Canadian dollars)
1,6012,0313,5245,613
Weighted average number of common shares outstanding (millions of shares)
625.3700.0652.9719.4
Weighted-average number of common shares outstanding (millions of shares)
Weighted-average number of common shares outstanding (millions of shares)
578.0625.3582.1652.9
Effect of employee share-based awards (millions of shares)
Effect of employee share-based awards (millions of shares)
1.61.91.51.7
Effect of employee share-based awards (millions of shares)
1.31.61.21.5
Weighted average number of common shares outstanding,
assuming dilution (millions of shares)
626.9701.9654.4721.1
Weighted-average number of common shares outstanding,
assuming dilution (millions of shares)
Weighted-average number of common shares outstanding,
assuming dilution (millions of shares)
579.3626.9583.3654.4
Net income (loss) per common share (dollars)
Net income (loss) per common share (dollars)
3.241.298.582.31
Net income (loss) per common share (dollars)
2.763.246.048.58
Dividends per common share – declared (dollars)
Dividends per common share – declared (dollars)
0.340.271.020.76
Dividends per common share – declared (dollars)
0.500.341.441.02
18


IMPERIAL OIL LIMITED

10. Other comprehensive income (loss) information

Changes in accumulated other comprehensive income (loss):
millions of Canadian dollars2022 2021 
Balance at January 1(1,177)(1,989)
Postretirement benefits liability adjustment:
Current period change excluding amounts reclassified
       from accumulated other comprehensive income
24 54 
Amounts reclassified from accumulated other comprehensive income63 99 
Balance at September 30(1,090)(1,836)

millions of Canadian dollars2023 2022 
Balance at January 1(512)(1,177)
Postretirement benefits liability adjustment:
Current period change excluding amounts reclassified
       from accumulated other comprehensive income
21 24 
Amounts reclassified from accumulated other comprehensive income29 63 
Balance at September 30(462)(1,090)

Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax income (expense):
       Third Quarter
        Nine Months
       to September 30
      Third Quarter
      Nine Months
       to September 30
millions of Canadian dollarsmillions of Canadian dollars2022 2021 2022 2021 millions of Canadian dollars2023 2022 2023 2022 
Amortization of postretirement benefits liability adjustment
included in net benefit cost (a)
Amortization of postretirement benefits liability adjustment
included in net benefit cost (a)
(28)(44)(83)(132)
Amortization of postretirement benefits liability adjustment
included in net benefit cost (a)
(13)(28)(39)(83)
(a) This accumulated other comprehensive income component is included in the computation of net benefit cost (note 4).

Income tax expense (credit) for components of other comprehensive income (loss):
        Third Quarter
     Nine Months
      to September 30
millions of Canadian dollars2022 2021 2022 2021 
Postretirement benefits liability adjustments:
Postretirement benefits liability adjustment (excluding amortization) — 8 17 
Amortization of postretirement benefits liability adjustment
       included in net benefit cost
7 11 20 33 
Total7 11 28 50 

11. Divestment activities

Jointly with ExxonMobil Canada, Imperial signed an agreement in the second quarter with Whitecap Resources Inc.for the sale of its interests in XTO Energy Canada which included assets in the Montney and Duvernay areas of central Alberta,for total cash consideration of approximately $1.9 billion ($0.9 billion Imperial's share). The transaction closed on August 31, 2022 and the company recognized a gain of approximately $0.2 billion. Imperial’s total assets associated with this transaction include about $0.9 billion (about $0.8 billion of property, plant and equipment) and about$0.2 billion total liabilities in the Upstream segment.
      Third Quarter
       Nine Months
       to September 30
millions of Canadian dollars2023 2022 2023 2022 
Postretirement benefits liability adjustments:
Postretirement benefits liability adjustment (excluding amortization) — 7 
Amortization of postretirement benefits liability adjustment
       included in net benefit cost
4 10 20 
Total4 17 28 

19


IMPERIAL OIL LIMITED

Item 2. Management’s discussion and analysis of financial condition and results of operations
Non-GAAP financial measures and other specified financial measures
Certain measures included in this document are not prescribed by U.S. Generally Accepted Accounting Principles (GAAP). These measures constitute “non-GAAP financial measures” under Securities and Exchange Commission Regulation G and Item 10(e) of Regulation S-K, and “specified financial measures” under National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosureof the Canadian Securities Administrators.

Reconciliation of these non-GAAP financial measures to the most comparable GAAP measure, and other information required by these regulations, have been provided. Non-GAAP financial measures and specified financial measures are not standardized financial measures under GAAP and do not have a standardized definition. As such, these measures may not be directly comparable to measures presented by other companies, and should not be considered a substitute for GAAP financial measures.
Net income (loss) excluding identified items
Net income (loss) excluding identified items is a non-GAAP financial measure that is total net income (loss) excluding individually significant non-operational events with an absolute corporate total earnings impact of at least $100 million in a given quarter. The net income (loss) impact of an identified item for an individual segment in a given quarter may be less than $100 million when the item impacts several segments or several periods. The most directly comparable financial measure that is disclosed in the financial statements is net"Net income (loss)" within the company’s Consolidated statement of income. Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing significant non-operational events from business results. The company believes this view provides investors increased transparency into business results and trends, and provides investors with a view of the business as seen through the eyes of management. Net income (loss) excluding identified items is not meant to be viewed in isolation or as a substitute for net income (loss) as prepared in accordance with U.S. GAAP. All identified items are presented on an after-tax basis.
Reconciliation of net income (loss) excluding identified items
Third QuarterNine MonthsThird QuarterNine Months
millions of Canadian dollarsmillions of Canadian dollars20222021 20222021 millions of Canadian dollars2023 2022 2023 2022 
From Imperial's Consolidated statement of incomeFrom Imperial's Consolidated statement of incomeFrom Imperial's Consolidated statement of income
Net income (loss) (U.S. GAAP)Net income (loss) (U.S. GAAP)2,031 908 5,613 1,666 Net income (loss) (U.S. GAAP)1,601 2,031 3,524 5,613 
Less identified items included in Net income (loss)Less identified items included in Net income (loss)Less identified items included in Net income (loss)
Gain/(loss) on sale of assetsGain/(loss) on sale of assets208 — 208 — Gain/(loss) on sale of assets 208  208 
Subtotal of identified itemsSubtotal of identified items208  208  Subtotal of identified items 208  208 
Net income (loss) excluding identified itemsNet income (loss) excluding identified items1,823 908 5,405 1,666 Net income (loss) excluding identified items1,601 1,823 3,524 5,405 
20


IMPERIAL OIL LIMITED

CurrentRecent business environment

During the COVID-19 pandemic, industry investment to maintain and increase production capacity was restrained to preserve capital, resulting in underinvestment and supply tightness as demand for petroleum and petrochemical products recovered. Across late 2021 andfirst quarter of 2023, the first half of 2022, this dynamic, along with supply chain constraints and a continuation of demand recovery, led to a steady increase in oil and natural gas prices and refining margins. In the first half of 2022, tightness in the oil and natural gas markets was further exacerbated by Russia’s invasion of Ukraine and subsequent sanctions imposed upon business and other activities in Russia. The price of crude oil declined, impacted by higher inventory levels, and certain regional natural gas indicators increased to levels not seen for several years. Acrossthe price of crude oil remained relatively flat during the second quarter. In the third quarter, of 2022, high prices and economic uncertainty led to a tempering of demand for some products, causing crude oil prices andincreased as demand exceeded supply after OPEC+ oil producers further reduced oil output. In addition, the Canadian WTI/WCS spread continued to recover in the third quarter, but remains weaker than 2022 on an annual basis. Similarly, 2023 refining margins to soften relative to first half levels. Commodity and product prices are expected to remain volatile given the current global economic and geopolitical uncertainty affecting supply and demand.strong but fall short of 2022 levels on an annual basis.
Operating results
Third quarter 20222023 vs. third quarter 20212022
        Third Quarter         Third Quarter
millions of Canadian dollars, unless notedmillions of Canadian dollars, unless noted20222021millions of Canadian dollars, unless noted20232022
Net income (loss) (U.S. GAAP)Net income (loss) (U.S. GAAP)2,031908
Net income (loss) (U.S. GAAP)
1,6012,031
Net income (loss) per common share, assuming dilution (dollars)Net income (loss) per common share, assuming dilution (dollars)3.241.29
Net income (loss) per common share, assuming dilution (dollars)
2.763.24
Net income (loss) excluding identified items¹Net income (loss) excluding identified items¹1,823908Net income (loss) excluding identified items¹1,6011,823

CurrentPrior year third quarter results includeincluded favourable identified items¹items1 of $208 million related to the company's gain on the sale of interests in XTO Energy Canada.
Upstream
Net income (loss) factor analysis
millions of Canadian dollars
imo-20220930_g1.jpg

78
Price – HigherSynthetic crude oil realizations were generally in line with increases in marker prices, driven primarilydecreased by increased demand and supply chain constraints. Average bitumen realizations increased by $21.14$11.82 per barrel, generally in line with WCS, and synthetic crude oilWTI. Average bitumen realizations increased by $38.86$4.47 per barrel generally in line with WTI.barrel. Higher bitumen realizations were primarily driven by the narrowing of the WTI/WCS spread, partially offset by lower marker prices.

Volumes LowerHigher volumes were the result ofprimarily driven by increased plant capacity utilization and mine equipment productivity at Kearl, and annual turnaround timing of planned turnaround activitiesand duration at Syncrude, partially offset by higher volumessteam cycle timing and planned turnaround activity at Cold Lake, primarily driven by continued focus on sustained performance and production optimization.Lake.

Royalty – Higher royalties primarily driven by improved commodity prices.

Identified Items¹ Items1 Current Prior year third quarter results includeincluded favourable identified items¹items1 related to the company's gain on the sale of interests in XTO Energy Canada.

Other – Includes higherlower operating expenses of about $200$160 million, partially offset byand favourable foreign exchange impacts of about $80 million.








¹
1non-GAAP financial measure - see non-GAAP financial measures and other specified financial measures for definition and reconciliation
21


IMPERIAL OIL LIMITED

Marker prices and average realizations
       Third Quarter        Third Quarter
Canadian dollars, unless notedCanadian dollars, unless noted2022 2021 Canadian dollars, unless noted2023 2022 
West Texas Intermediate (US$ per barrel)
West Texas Intermediate (US$ per barrel)
91.43 70.52 
West Texas Intermediate (US$ per barrel)
82.32 91.43 
Western Canada Select (US$ per barrel)
Western Canada Select (US$ per barrel)
71.53 57.08 
Western Canada Select (US$ per barrel)
69.39 71.53 
WTI/WCS Spread (US$ per barrel)
WTI/WCS Spread (US$ per barrel)
19.90 13.44 
WTI/WCS Spread (US$ per barrel)
12.93 19.90 
Bitumen (per barrel)Bitumen (per barrel)81.58 60.44 
Bitumen (per barrel)
86.05 81.58 
Synthetic crude oil (per barrel)Synthetic crude oil (per barrel)124.80 85.94 
Synthetic crude oil (per barrel)
112.98 124.80 
Average foreign exchange rate (US$)
Average foreign exchange rate (US$)
0.77 0.79 
Average foreign exchange rate (US$)
0.75 0.77 
Production
       Third Quarter
thousands of barrels per day2023 2022 
Kearl (Imperial's share)
209 193 
Cold Lake128 150 
Syncrude (a)
75 62 
Kearl total gross production (thousands of barrels per day)
295 271 
(a)In the third quarter of 2023, Syncrude gross production included about 0 thousand barrels per day of bitumen and other products (2022 - 7 thousand barrels per day) that were exported to the operator's facilities using an existing interconnect pipeline.

Production
       Third Quarter
thousands of barrels per day2022 2021 
Kearl (Imperial's share)
193 194 
Cold Lake150 135 
Syncrude (a)
62 78 
Kearl total gross production (thousands of barrels per day)
271 274 
(a) In the third quarter of 2022, Syncrude gross production included about 7 thousand barrels per day of bitumen and other products (2021 - 1 thousand barrels per day) that was exported to the operator's facilities using an existing interconnect pipeline.
Higher production at Kearl was primarily driven by increased plant capacity utilization and mine equipment productivity.

HigherLower production at Cold Lake was primarily driven by continued focus on sustained performancesteam cycle timing and production optimization.planned turnaround activity.

LowerHigher production at Syncrude was primarily a result of thedriven by annual turnaround timing of planned turnaround activities.and duration.
Downstream
Net income (loss) factor analysis
millions of Canadian dollars
imo-20220930_g2.jpg81

Margins – HigherLower margins primarily reflect improvedweaker market conditions.

Refinery utilization and petroleum product sales
        Third Quarter
thousands of barrels per day, unless noted2022 2021 
Refinery throughput426 404 
Refinery capacity utilization (percent)
100 94 
Petroleum product sales484 485 
Improved refinery throughput inOther – Includes favourable foreign exchange impacts of about $50 million, partially offset by higher turnaround impacts of about $50 million reflecting the third quarter of 2022 was primarily driven by economic optimization across the downstream supply chain.planned turnaround activities at Sarnia refinery.
22


IMPERIAL OIL LIMITED
Refinery utilization and petroleum product sales
        Third Quarter
thousands of barrels per day, unless noted2023 2022 
Refinery throughput416 426 
Refinery capacity utilization (percent)
96 100 
Petroleum product sales478 484 

Lower refinery throughput in the third quarter of 2023 reflects the impact of planned turnaround activities at Sarnia refinery.
Chemicals
Net income (loss) factor analysis
millions of Canadian dollars
imo-20220930_g3.jpg

Margins – Lower margins primarily reflect weaker industry polyethylene margins.

80
Corporate and other
        Third Quarter        Third Quarter
millions of Canadian dollarsmillions of Canadian dollars2022 2021 millions of Canadian dollars2023 2022 
Net income (loss) (U.S. GAAP)
Net income (loss) (U.S. GAAP)
(21)(30)
Net income (loss) (U.S. GAAP)
(36)(21)
Liquidity and capital resources
       Third Quarter         Third Quarter
millions of Canadian dollarsmillions of Canadian dollars2022 2021 millions of Canadian dollars2023 2022 
Cash flow generated from (used in):  
Cash flows from (used in):Cash flows from (used in): 
Operating activitiesOperating activities3,089 1,947 Operating activities2,359 3,089 
Investing activitiesInvesting activities364 (259)Investing activities(380)364 
Financing activitiesFinancing activities(2,744)(589)Financing activities(1,639)(2,744)
Increase (decrease) in cash and cash equivalentsIncrease (decrease) in cash and cash equivalents709 1,099 Increase (decrease) in cash and cash equivalents340 709 
Cash and cash equivalents at period endCash and cash equivalents at period end3,576 1,875 Cash and cash equivalents at period end2,716 3,576 

Cash flow generatedflows from operating activities primarily reflects higher Upstream realizations, improvedreflect lower Downstream margins, and favourable working capital impacts.margins.

Cash flow generated fromflows used in investing activities primarily reflectsreflect the absence of proceeds from the sale of interests in XTO Energy Canada, partially offset by higher additions to property, plant and equipment.Canada.

Cash flowflows used in financing activities primarily reflects:reflect:
       Third Quarter        Third Quarter
millions of Canadian dollars, unless notedmillions of Canadian dollars, unless noted2022 2021 millions of Canadian dollars, unless noted2023 2022 
Dividends paidDividends paid227 195 Dividends paid292 227 
Per share dividend paid (dollars)
Per share dividend paid (dollars)
0.34 0.27 
Per share dividend paid (dollars)
0.50 0.34 
Share repurchases (a)
Share repurchases (a)
1,512 313 
Share repurchases (a)
1,342 1,512 
Number of shares purchased (millions) (a)
Number of shares purchased (millions) (a)
25.2 9.0 
Number of shares purchased (millions) (a)
17.5 25.2 
(a)Share repurchases were made under the company's normal course issuer bid program, and include shares purchased from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid.

(a)
DuringShare repurchases were made under the third quartercompany's normal course issuer bid program, and include shares purchased from Exxon Mobil Corporation concurrent with, but outside of, 2022, the company decreased its long-term debt by $1 billion by partially repaying an existing facility with an affiliated company of ExxonMobil.normal course issuer bid.

23


IMPERIAL OIL LIMITED

Nine months 20222023 vs. nine months 20212022
        Nine Months         Nine Months
millions of Canadian dollars, unless notedmillions of Canadian dollars, unless noted20222021millions of Canadian dollars, unless noted20232022
Net income (loss) (U.S. GAAP)
Net income (loss) (U.S. GAAP)
5,6131,666
Net income (loss) (U.S. GAAP)
3,5245,613
Net income (loss) per common share, assuming dilution (dollars)
Net income (loss) per common share, assuming dilution (dollars)
8.582.31
Net income (loss) per common share, assuming dilution (dollars)
6.048.58
Net income (loss) excluding identified items¹Net income (loss) excluding identified items¹5,4051,666Net income (loss) excluding identified items¹3,5245,405

CurrentPrior year results includeincluded favourable identified items¹items1 of $208 million related to the company's gain on the sale of interests in XTO Energy Canada.
Upstream
Net income (loss) factor analysis
millions of Canadian dollars
imo-20220930_g4.jpg

79
Price – HigherLower bitumen realizations were generally in line with increases inprimarily driven by lower marker prices driven primarily by increased demand and supply chain constraints.the widening WTI/WCS spread. Average bitumen realizations increaseddecreased by $38.71$25.31 per barrel, generally in line with WCS, and synthetic crude oil realizations increaseddecreased by $51.90$23.87 per barrel, generally in line with WTI.

Volumes – Lower volumes were primarily driven by steam cycle timing at Cold Lake, and the resultabsence of downtimeXTO Energy Canada production, partially offset by improved reliability and absence of extreme cold weather at Kearl in the first half of the year.Kearl.

Royalty – HigherLower royalties were primarily driven by improvedweakened commodity prices.

Identified Items¹ Items1 Current Prior year results includeincluded favourable identified items¹items1 related to the company's gain on the sale of interests in XTO Energy Canada.

Other – Includes higher operating expenses of about $430 million, primarily higher energy prices, partially offset by favourable foreign exchange impacts of about $130 million.$400 million, and lower operating expenses of about $220 million, primarily due to lower energy prices.
Marker prices and average realizations
      Nine Months
Canadian dollars, unless noted2022 2021 
West Texas Intermediate (US$ per barrel)
98.25 65.04 
Western Canada Select (US$ per barrel)
82.60 52.45 
WTI/WCS Spread (US$ per barrel)
15.65 12.59 
Bitumen (per barrel)
94.01 55.30 
Synthetic crude oil (per barrel)
129.52 77.62 
Average foreign exchange rate (US$)
0.78 0.80 




       Nine Months
Canadian dollars, unless noted2023 2022 
West Texas Intermediate (US$ per barrel)
77.29 98.25 
Western Canada Select (US$ per barrel)
59.67 82.60 
WTI/WCS Spread (US$ per barrel)
17.62 15.65 
Bitumen (per barrel)
68.70 94.01 
Synthetic crude oil (per barrel)
105.65 129.52 
Average foreign exchange rate (US$)
0.74 0.78 




¹
1non-GAAP financial measure - see non-GAAP financial measures and other specified financial measures for definition and reconciliation
24


IMPERIAL OIL LIMITED
Production
        Nine Months
thousands of barrels per day2023 2022 
Kearl (Imperial's share)
182 162 
Cold Lake134 145 
Syncrude (a)
72 74 
Kearl total gross production (thousands of barrels per day)
257 228 
(a)In 2023, Syncrude gross production included about 1 thousand barrels per day of bitumen and other products (2022 - 4 thousand barrels per day) that were exported to the operator's facilities using an existing interconnect pipeline.

Higher production at Kearl was primarily driven by improved reliability as a result of the successful rollout of the winterization strategy, the absence of extreme cold weather, increased plant capacity utilization, and mine equipment productivity.
Production
        Nine Months
thousands of barrels per day2022 2021 
Kearl (Imperial's share)
162 185 
Cold Lake145 139 
Syncrude (a)
74 68 
Kearl total gross production (thousands of barrels per day)
228 260 
(a) In 2022, Syncrude gross production included about 4 thousand barrels per day of bitumen and other products (2021 - 1 thousand barrels per day) that was exported to the operator's facilities using an existing interconnect pipeline.
Lower production at Kearl was primarily a result of downtime in the first half of the year.
Lower production at Cold Lake was primarily driven by steam cycle timing.
Downstream
Net income (loss) factor analysis
millions of Canadian dollars

imo-20220930_g5.jpg82

Margins – HigherLower margins primarily reflect improvedweaker market conditions.

Other – Includes lower turnaround impacts of about $140 million, reflecting the absence of turnaround activities at Strathcona refinery and favourableFavourable foreign exchange impacts of about $70$240 million and improved volumes of about $140 million, partially offset by higher operating expensesturnaround impacts of about $130$300 million, primarily from higher energy costs.

associated with the planned turnaround activities at the Strathcona and Sarnia refineries.
Refinery utilization and petroleum product sales
          Nine Months
thousands of barrels per day, unless noted2022 2021 
Refinery throughput413 367 
Refinery capacity utilization (percent)
96 86 
Petroleum product sales471 442 
Improved refinery throughput in 2022 was primarily driven by reduced turnaround activity and increased demand.

Improved petroleum product sales in 2022 primarily reflects increased demand.
         Nine Months
thousands of barrels per day, unless noted2023 2022 
Refinery throughput407 413 
Refinery capacity utilization (percent)
94 96 
Petroleum product sales469 471 
Chemicals
Net income (loss) factor analysis
millions of Canadian dollars
imo-20220930_g6.jpg

Margins – Lower margins primarily reflect weaker industry polyethylene margins.80
25


IMPERIAL OIL LIMITED

Corporate and other
        Nine Months        Nine Months
millions of Canadian dollarsmillions of Canadian dollars2022 2021 millions of Canadian dollars2023 2022 
Net income (loss) (U.S. GAAP)
Net income (loss) (U.S. GAAP)
(98)(126)
Net income (loss) (U.S. GAAP)
(71)(98)
Liquidity and capital resources

         Nine Months         Nine Months
millions of Canadian dollarsmillions of Canadian dollars2022 2021 millions of Canadian dollars2023 2022 
Cash flow generated from (used in):  
Cash flows from (used in):Cash flows from (used in): 
Operating activitiesOperating activities7,6853,844Operating activities2,423 7,685 
Investing activitiesInvesting activities(145)(613)Investing activities(1,283)(145)
Financing activitiesFinancing activities(6,117)(2,127)Financing activities(2,173)(6,117)
Increase (decrease) in cash and cash equivalentsIncrease (decrease) in cash and cash equivalents1,4231,104 Increase (decrease) in cash and cash equivalents(1,033)1,423 

Cash flow generatedflows from operating activities primarily reflects higherreflect unfavourable working capital impacts, including an income tax catch-up payment of $2.1 billion, as well as lower Upstream realizations improvedand Downstream margins, and favourable working capital impacts.margins.

Cash flowflows used in investing activities primarily reflectsreflect the absence of proceeds from the sale of interests in XTO Energy Canada, partially offset byand higher additions to property, plant and equipment.

Cash flowflows used in financing activities primarily reflects:reflect:
        Nine Months        Nine Months
millions of Canadian dollars, unless notedmillions of Canadian dollars, unless noted2022 2021 millions of Canadian dollars, unless noted2023 2022 
Dividends paidDividends paid640 518 Dividends paid815 640 
Per share dividend paid (dollars)
Per share dividend paid (dollars)
0.95 0.71 
Per share dividend paid (dollars)
1.38 0.95 
Share repurchases (a)
Share repurchases (a)
4,461 1,484 
Share repurchases (a)
1,342 4,461 
Number of shares purchased (millions) (a)
Number of shares purchased (millions) (a)
66.6 38.5 
Number of shares purchased (millions) (a)
17.5 66.6 
(a)Share repurchases were made under the company’s normal course issuer bid program and substantial issuer bid that commenced on May 6, 2022 and expired on June 10, 2022. Includes shares purchased from Exxon Mobil Corporation concurrent with, but outside of, the normal course issuer bid, and by way of a proportionate tender under the company’s substantial issuer bid.
(a)Share repurchases were made under the company's normal course issuer bid program. In the second quarter of 2022, share repurchases were made under the company's substantial issuer bid that commenced on May 6, 2022 and expired on June 10, 2022. Includes shares purchased from Exxon Mobil Corporation concurrent with, but outside of, the normal course issuer bid, and by way of a proportionate tender under the company's substantial issuer bid.
(a)Share repurchases were made under the company's normal course issuer bid program. In the second quarter of 2022, share repurchases were made under the company's substantial issuer bid that commenced on May 6, 2022 and expired on June 10, 2022. Includes shares purchased from Exxon Mobil Corporation concurrent with, but outside of, the normal course issuer bid, and by way of a proportionate tender under the company's substantial issuer bid.

During the third quarter of 2022,On June 27, 2023, the company decreasedannounced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid to continue its long-term debt by $1 billion by partially repaying anthen existing facility with an affiliated company of ExxonMobil.
On May 6, 2022,share purchase program. The program enabled the company commencedto purchase up to a substantialmaximum of 29,207,635 common shares during the period June 29, 2023 to June 28, 2024. This maximum included shares purchased under the normal course issuer bid pursuant to which it offered to purchase for cancellation up to $2.5 billion of its common shares through a modified Dutch auction and proportionate tender offer. The substantial issuer bid was completed on June 15, 2022, with the company taking up and paying for 32,467,532 common shares at a price of $77.00 per share, for an aggregate purchase of $2.5 billion and 4.9 percent of Imperial’s issued and outstanding shares at the close of business on May 2, 2022. This included 22,597,379 shares purchased from Exxon Mobil Corporation by wayconcurrent with, but outside of, a proportionate tenderthe normal course issuer bid. As in the past, Exxon Mobil Corporation advised the company that it intended to participate to maintain its ownership percentage at approximately 69.6 percent.

Subsequent Imperial accelerated share purchases under the normal course issuer bid program during the third quarter and, subsequent to the end of the third quarter, the companyprogram completed all share repurchases under its normal course issuer bid on October 21, 2022.19, 2023 as a result of the company purchasing the maximum allowable number of shares under the program.

On October 28, 202227, 2023, the company announced its intention to launch a substantial issuer bid pursuant to which the company will offer to purchase for cancellation up to $1.5billion of its common shares. The substantial issuer bid will be made through a modified Dutch auction, with a tender price range to be determined by the company at the time of commencement of the offer. Shares may also be tendered by way of a proportionate tender, which will result in a shareholder maintaining their proportionate share ownership. ExxonMobil has advised Imperial that it intends to make a proportionate tender in connection with the offer in order to maintain its proportionate share ownership at approximately 69.6 percent following completion of the offer. Nothing in this report shall constitute an offer to purchase or a solicitation of an offer to sell any shares.





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IMPERIAL OIL LIMITED

Contractual obligations

DuringAs previously communicated, in the thirdsecond quarter of 2022,2023, the company entered into a long-term raw material purchase agreement with a third-party, commencingthird party for about $3 billion. It has no impact on the 2023 and 2024 obligations disclosed in 2024, which includes a take-or-pay commitment of about $700 million.Imperial's 2022 annual report on Form 10-K. The company does not believe that this increase inthe increased obligation including prior obligations discussed in Imperial's 2021 annual report on Form 10-K, will have a material adverse effect on the company’sImperial's operations, financial conditions,condition or financial statements taken as a whole.statements.
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IMPERIAL OIL LIMITED

Forward-looking statements

Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans are forward-looking statements. Forward-looking statements can be identified by words such as believe, anticipate, intend, propose, plan, goal, seek, project, predict, target, estimate, expect, strategy, outlook, schedule, future, continue, likely, may, should, will and similar references to future periods. Forward-looking statements in this release include, but are not limited to, references to the use of derivative instruments and effectiveness of risk mitigation; the company’s intention to initiate a substantial issuer bid, including the size, structure, timing for determining the terms, pricing and pricing, commencement, structure and ExxonMobil’s intent to make a proportionate tender; the continued evaluation of the share purchase program in context of overall capital activities; references to the use of derivative instruments and effectiveness of risk mitigation; and the company’s belief that the commitment related to the long-term raw material purchase agreement will not have a material adverse effect on the company; and the expectation of commodity and product price volatility.company’s operations, financial condition or financial 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, supply and mix; production rates, growth and mix; for shareholder returns, assumptions such as cash flow forecasts, financing sources and capital structure, that the necessary exemptive relief to proceed with the substantial issuer bid under applicable securities laws will be received on the timeline anticipated, and ExxonMobil making a proportionate tender in connection with the substantial issuer bid; project plans, timing, costs, technical evaluations and capacities and the company’s ability to effectively execute on these plans and operate its assets; capital and environmental expenditures; the adoption and impact of new facilities or technologies on reductions to GHG emissions intensity, and any changes in the scope, terms, or costs of such projects; applicable laws and government policies, including with respect to climate change and GHG emissions reductions; progression of COVID-19 and its impacts on Imperial’s ability to operate its assets; and commodity prices, foreign exchange rates and general market conditions, could differ materially depending on a number of factors.

These factors include global, regional or local changes in supply and demand for oil, natural gas, and petroleum and petrochemical products and resulting price, differential and margin impacts, including foreign government action with respect to supply levels and prices, the impact of COVID-19 on demand and the occurrence of wars; availability and allocation of capital; the receipt, in a timely manner, of regulatory and third-party approvals, including for the company’s substantial issuer bid; the resultsavailability and allocation of research programs and new technologies, the ability to bring new technologies to commercial scale on a cost-competitive basis, and the competitiveness of alternative energy and other emission reduction technologies;capital; project management and schedules and timely completion of projects; unanticipated technical or operational difficulties; lack of required support from governments and policymakers for adoption of new technologies for emissions reductions; availability and performance of third-party service providers, including in light of restrictions related to COVID-19;providers; environmental risks inherent in oil and gas exploration and production activities; political or regulatory events, including changes in law or government policy, environmental regulation including climate change and greenhouse gas regulation, and actions in response to COVID-19;policy; management effectiveness and disaster response preparedness, including business continuity plans in response to COVID-19;preparedness; operational hazards and risks; cybersecurity incidents, including increased reliance on remote working arrangements; currency exchange rates; general economic conditions; 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 and subsequent interim reports.

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.

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.

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IMPERIAL OIL LIMITED

Item 3. Quantitative and qualitative disclosures about market risk
Information about market risks for the nine months ended September 30, 2022,2023, does not differ materially from that discussed on page 3332 of the company’s annual report on Form 10-K for the year ended December 31, 2021 and on page 23 of the Form 10-Q for the quarter ended March 31, 2022.
Item 4. Controls and procedures
As indicated in the certifications in Exhibit 31 of this report, the company’s principal executive officer and principal financial officer have evaluated the company’s disclosure controls and procedures as of September 30, 2022.2023. Based on that evaluation, these officers have concluded that the company’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the company in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. There has not been any change in the company’s internal control over financial reporting during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting.
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IMPERIAL OIL LIMITED

PART II. OTHER INFORMATION
Item 1. Legal proceedings
Imperial has elected to use a $1 million (U.S. dollars) threshold for disclosing environmental proceedings.
Item 2. Unregistered sales of equity securities and use of proceeds
Issuer purchases of equity securities
Total number of
shares purchased
Average price paid
per share
(Canadian dollars)
Total number of
shares purchased
as part of publicly
announced plans
or programs
Maximum number
of shares that may
yet be purchased
under the plans or
programs (a)
Total number of
shares purchased
Average price paid
per share
(Canadian dollars)
Total number of
shares purchased
as part of publicly
announced plans
or programs
Maximum number
of shares that may
yet be purchased
under the plans or
programs (a)
July 2022    
July 2023July 2023 
(July 1 - July 31)(July 1 - July 31)5,082,67556.855,082,67526,751,134(July 1 - July 31)2,283,731 66.72 2,283,731 26,923,904 
August 2022    
August 2023August 2023
(August 1 - August 31)(August 1 - August 31)10,068,14460.5310,068,14416,682,990(August 1 - August 31)5,923,101 74.12 5,923,101 21,000,803 
September 2022  
September 2023September 2023  
(September 1 - September 30)(September 1 - September 30)10,009,79261.2210,009,7926,673,198(September 1 - September 30)9,278,768 80.91 9,278,768 11,722,035 
(a)On June 27, 2022,2023, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid and to continue its existing share purchase program. The program enabled the company to purchase up to a maximum of 31,833,80929,207,635 common shares during the period June 29, 20222023 to June 28, 2023.2024. This maximum included shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of, the normal course issuer bid. As in the past, Exxon Mobil Corporation advised the company that it intended to participate to maintain its ownership percentage at approximately 69.6 percent. Imperial accelerated its share purchases under the normal course issuer bid program during the third quarter and, subsequent to the end of the third quarter, the program completed on October 21, 202219, 2023 as a result of the company purchasing the maximum allowable number of shares under the program

program.
On October 28, 202227, 2023, the company announced its intention to launch a substantial issuer bid pursuant to which the company will offer to purchase for cancellation up to $1.5 billion of its common shares. The substantial issuer bid will be made through a modified Dutch auction, with a tender price range to be determined by the company at the time of commencement of the offer. Shares may also be tendered by way of a proportionate tender, which will result in a shareholder maintaining their proportionate share ownership. ExxonMobil has advised Imperial that it intends to make a proportionate tender in connection with the offer in order to maintain its proportionate share ownership at approximately 69.6 percent following completion of the offer. Nothing in this report shall constitute an offer to purchase or a solicitation of an offer to sell any shares.
The company will continue to evaluate its share purchase program in the context of its overall capital activities. Purchase plans may be modified at any time without prior notice.

Item 5. Other information

During the three months ended September 30, 2023, none of the Company's directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.
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IMPERIAL OIL LIMITED

Item 6. Exhibits
(31.1)(31.1) Certification by the principal executive officer of the company pursuant to Rule 13a-14(a).
(31.2) Certification by the principal financial officer of the company pursuant to Rule 13a-14(a).
(32.1) Certification by the chief executive officer of the company pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350.
(32.2) Certification by the chief financial officer of the company pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350.
(101) Interactive Data Files (formatted as Inline XBRL).
(104) Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
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IMPERIAL OIL LIMITED

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Imperial Oil Limited
(Registrant)
Date:November 2, 2022October 31, 2023/s/ Daniel E. Lyons
(Signature)
Daniel E. Lyons
Senior vice-president, finance and
administration, and controller
(Principal accounting officer)
Date:November 2, 2022October 31, 2023/s/ Cathryn Walker
(Signature)
Cathryn Walker
Assistant corporate secretary
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