Exhibit 99.1
Imperial Oil Limited | ||
237 - 4th Avenue S.W. | ||
| Calgary, AB T2P 0H6 | News Release |
Imperial Oil announces third-quarter financial and operating results
Calgary, October 30, 2007– Imperial Oil today announced net income for the third quarter of $816 million or $0.88 a share, compared with $822 million or $0.84 a share for the same period last year. Net income for the first nine months of 2007 was $2,302 million or $2.45 a share, versus $2,250 million or $2.28 a share for the first nine months of 2006.
Third quarter earnings were essentially equal to those in the same period in 2006 and positively impacted by higher crude oil realizations, higher Syncrude volumes, and favourable refinery operations and inventory effects. Higher gains from asset divestments also contributed to earnings. Offsetting these factors were lower natural gas, conventional crude oil and natural gas liquids volumes, lower Cold Lake heavy oil realizations as well as weaker industry refining margins. A stronger Canadian dollar also negatively impacted earnings.
Operating revenues were $6,306 million in the third quarter, compared with $6,612 million in the corresponding period last year. Capital and exploration expenditures were $245 million in the third quarter, compared with $263 million during the same quarter of 2006. For the first nine months of 2007, the amount was $661 million, versus $868 million in the same period a year ago. During the third quarter of 2007, the company repurchased about 12.8 million shares for $600 million. At September 30, the company’s balance of cash and marketable securities was $2,223 million, compared with $2,158 million at the end of 2006.
“We had a solid third quarter with record production levels at Syncrude and Cold Lake. A significant resource recovery technology at Cold Lake was also advanced. We continue with a strong focus to mitigate costs brought on by the cumulative impact of global materials cost escalation, a rising Canadian dollar and various new policies and regulations directed at the oil and gas industry. The recently announced Alberta royalty plan will add to these costs and investment pressures,” said Tim Hearn, Imperial’s chairman, president and chief executive officer.
Imperial Oil is one of Canada’s largest corporations and a leading member of the country’s petroleum industry. It is one of Canada’s largest producers of crude oil and natural gas, is the country’s largest petroleum refiner, and has a leading market share in petroleum products sold through a coast-to-coast supply network that includes close to 2,000 service stations.
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For further information:
| Investor relations | Media relations | |
| Dee Brandes | Richard O’Farrell | |
| (403) 237-4537 | (403) 237-2710 |
Highlights/Items of interest
Record production at Cold Lake
Production at Cold Lake, the company’s wholly-owned in situ oil sands project, averaged a record 160 thousand barrels a day during the quarter. Higher production was due to the cyclic nature of production at Cold Lake and increased volumes from the ongoing development drilling program.
First commercial application of LASER started up at Cold Lake
Commercial application of liquid addition to steam for enhanced recovery (LASER), commenced at Cold Lake after several years of field testing. The Imperial-patented technology increases the amount of recoverable resource for late cycle portions of the field. The application of LASER will follow a disciplined, phased development, allowing the company to continue to incorporate learnings and best technologies on a continuous basis.
Record production at Syncrude
Imperial’s share of production at Syncrude averaged a record 94 thousand barrels a day in the month of August, and a record 87 thousand barrels a day in the third quarter. Higher production was achieved through improved reliability resulting in higher utilization of expansion capacity. The Syncrude oil sands joint venture is 25-percent owned by Imperial.
Imperial’s Sarnia chemical operations recognized by Responsible Care®
A recent assessment by a team of industry and community representatives shows that Imperial Oil continues to meet and exceed the guiding principles of Responsible Care®. An initiative of the Canadian Chemical Producers’ Association (CCPA), Responsible Care requires that its members follow its ethic and strict codes of practice that govern the safe and environmentally responsible handling of chemicals throughout their life-cycle. Introduced in Canada in 1985 and developed with significant input from Imperial, Responsible Care® is now practiced in more than 50 countries around the world.
Responsible Care® is a registered trademark of the Canadian Chemical Producers’ Association.
Imperial invests $1 million in the workforce of the future
Continuing the company’s long history of supporting education and community initiatives, the donation will put leading-edge technology in the hands of NAIT instrumentation students by funding the Imperial Oil Process Control Laboratory. The lab houses advanced equipment specific to the oil and gas industry, including a distillation tower that simulates processes found in petro-chemical refineries. The donation is also aimed at ensuring the success of Aboriginal students, one of Canada’s largest untapped sources of skilled labour.
IMPERIAL OIL LIMITED
FINANCIAL HIGHLIGHTS (unaudited)
| Nine months | ||||||||||||||||
| Third quarter | to September 30 | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| Net income (U.S. GAAP, millions of dollars) | ||||||||||||||||
| Natural resources | 607 | 617 | 1,630 | 1,768 | ||||||||||||
| Petroleum products | 191 | 149 | 703 | 410 | ||||||||||||
| Chemicals | 24 | 38 | 74 | 108 | ||||||||||||
| Corporate and other | (6 | ) | 18 | (105 | ) | (36 | ) | |||||||||
| Net income (U.S. GAAP) | 816 | 822 | 2,302 | 2,250 | ||||||||||||
| Cash flow from operating activities | 1,014 | 1,640 | 2,414 | 2,528 | ||||||||||||
| Capital and exploration expenditures | 245 | 263 | 661 | 868 | ||||||||||||
| Per-share information (dollars) | ||||||||||||||||
| Net income — basic | 0.88 | 0.84 | 2.46 | 2.29 | ||||||||||||
| Net income — diluted | 0.88 | 0.84 | 2.45 | 2.28 | ||||||||||||
| Dividends | 0.09 | 0.08 | 0.26 | 0.24 | ||||||||||||
| Share prices — close at September 30 | ||||||||||||||||
| Toronto Stock Exchange (Canadian dollars) | 49.29 | 37.47 | ||||||||||||||
| American Stock Exchange (U.S. dollars) | 49.56 | 33.55 | ||||||||||||||
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OPERATING RESULTS
The company’s net income for the third quarter of 2007 was $816 million or $0.88 a share on a diluted basis, compared with $822 million or $0.84 a share for the same period last year. Net income for the first nine months of 2007 was $2,302 million or $2.45 a share on a diluted basis, versus $2,250 million or $2.28 a share for the first nine months of 2006.
Earnings in the third quarter were essentially equal to that in the same period in 2006. Earnings were positively impacted by higher crude oil realizations of about $60 million and higher Syncrude volumes of about $50 million. Earnings were also about $60 million higher due to favourable refinery operations and inventory effects partially offset by weaker industry refining margins. Higher gains from asset divestments of about $50 million also contributed to earnings. Offsetting these positive factors were lower natural gas, conventional crude oil and natural gas liquids (NGL) volumes totaling about $80 million and lower Cold Lake heavy oil realizations of about $45 million. A stronger Canadian dollar also negatively impacted earnings by about $80 million.
For the first nine months, earnings increased primarily due to the positive impacts of about $160 million from refinery operations, stronger industry refining and marketing margins of about $130 million and higher Syncrude volumes of about $125 million. Gains from asset divestments were also higher in 2007 by about $100 million. Higher earnings were partially offset by lower conventional resources volumes of about $180 million, higher share-based compensation and exploration expenses totaling about $110 million and higher tax expense of about $80 million.
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IMPERIAL OIL LIMITED
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued .....)
A stronger Canadian dollar also negatively impacted earnings by about $80 million.
Natural resources
Net income from natural resources in the third quarter was $607 million, versus $617 million in the same period of 2006. The impact of natural resources volumes and realizations on earnings were mixed. Higher Syncrude volumes of about $50 million were more than offset by lower natural gas, conventional crude oil and NGL volumes totaling about $80 million. Higher crude oil realizations of about $60 million were partially offset by lower Cold Lake heavy oil realizations of about $45 million. Earnings were negatively impacted by a higher Canadian dollar of about $60 million and higher production, exploration and other operating costs of about $40 million. These negative factors were essentially offset by gains from asset divestments of about $50 million and lower tax expense of about $35 million.
Net income for the first nine months was $1,630 million versus $1,768 million during the same period last year. Earnings decreased primarily due to lower natural gas, conventional crude oil, and NGL volumes of about $180 million. Earnings were also lower due to higher tax expense of $80 million, the negative impact of a higher Canadian dollar of about $60 million and higher exploration expense of about $40 million. These factors were partially offset by higher Syncrude volumes of about $125 million. Higher crude oil realizations of about $35 million were more than offset by lower natural gas and Cold Lake heavy oil realizations totaling $50 million. Gains from asset divestments were higher in 2007 by about $100 million.
Brent crude oil prices in U.S. dollars averaged eight percent higher in the third quarter and were at about the same level for the first nine months compared with the same periods last year. However, mainly because of a stronger Canadian dollar, the company’s realizations for conventional crude oil were only about two percent higher in the third quarter and about four percent lower for the first nine months compared with the same periods last year. Average realizations for Cold Lake heavy oil in the third quarter were about 15 percent lower than the third quarter of 2006 as the price spread between light crude oil and Cold Lake heavy oil widened. For the first nine months in 2007, average realizations for Cold Lake heavy oil were slightly lower than the same period in 2006. Realizations for natural gas averaged $5.73 a thousand cubic feet in the third quarter, down from $6.29 in the same quarter last year. For the first nine-month period, realizations for natural gas averaged $7.11 a thousand cubic feet in 2007, down from $7.42 in the same period of 2006.
Total gross production of crude oil and NGLs in the third quarter was 291 thousand barrels a day, versus 281 thousand barrels in the third quarter of 2006. For the first nine months of the year, total gross production of crude oil and NGLs averaged 274 thousand barrels a day, compared with 273 thousand barrels in the same period of 2006.
Gross production of Cold Lake heavy oil averaged 160 thousand barrels a day during the third quarter, versus 158 thousand barrels in the same quarter last year. For the first nine months, gross production was 152 thousand barrels a day this year, compared with 155 thousand barrels in the same period of 2006. Lower production in the first nine months was due to maintenance activities and the cyclic nature of production at Cold Lake.
The company’s share of Syncrude’s gross production was 87 thousand barrels a day in the third quarter compared with 71 thousand barrels during the same period a year ago. During the nine-month period, the company’s share of gross production from Syncrude averaged 76 thousand
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IMPERIAL OIL LIMITED
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued .....)
barrels a day in 2007, up from 61 thousand barrels in the same period of 2006. Increased volumes from the new coker were partially offset by lower production due to planned maintenance activities.
In the third quarter, gross production of conventional crude oil averaged 28 thousand barrels a day, compared with 31 thousand barrels during the same period in 2006. For the first nine months, gross production of conventional crude oil averaged 29 thousand barrels a day, compared with 32 thousand barrels during the same period in 2006. Natural reservoir decline in the Western Canadian Basin and the impact of divested producing properties were the main reasons for the reduced production.
Gross production of NGLs available for sale was 16 thousand barrels a day in the third quarter, down from 21 thousand barrels in the same quarter last year. During the first nine months of 2007, gross production of NGLs available for sale decreased to 17 thousand barrels a day, from 25 thousand barrels in the same period of 2006, mainly due to declining NGL content of Wizard Lake gas production.
Gross production of natural gas during the third quarter of 2007 decreased to 430 million cubic feet a day from 560 million cubic feet in the same period last year. In the first nine months of the year, gross production was 482 million cubic feet a day, down from 566 million in the first nine months of 2006. The lower production volume was primarily due to decline in production from the gas cap at Wizard Lake and natural decline in other producing properties in the Western Canadian Basin.
In the quarter, the company realized a gain of $51 million from the sale of its interest in the Willesden Green producing property in Alberta for net proceeds of about $78 million. Production of the company’s share of the Willesden Green property averaged about one thousand oil-equivalent barrels a day in 2006.
On October 25, the Alberta government proposed increases to the royalty rates on oil and gas production beginning in 2009. The company believes that this proposal could have an adverse effect on future company investments in Alberta and the company’s future financial results. The magnitude of the potential impact will depend on the final form of enacted legislation and the future prices of oil and gas and cannot be reasonably estimated at this time.
Petroleum products
Net income from petroleum products was $191 million in the third quarter of 2007, an increase of $42 million from the same period a year ago. Earnings were about $60 million higher due mainly to favourable refinery operations and inventory effects partially offset by weaker industry refining margins. A stronger Canadian dollar negatively impacted earnings by about $20 million.
Nine-month net income was $703 million, $293 million higher than the same period of 2006. Increased earnings were primarily due to the positive impacts of about $160 million from refinery operations including lower refinery maintenance and project activities, and stronger industry refining and marketing margins totaling about $130 million.
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IMPERIAL OIL LIMITED
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued .....)
Chemicals
Net income from chemicals was $24 million in the third quarter, compared with $38 million in the same period last year. Lower earnings were due primarily to lower industry margin for polyethylene products. Nine-month net income was $74 million, compared with $108 million for the same period in 2006. Lower earnings were due primarily to lower industry margin for polyethylene products partially offset by increased margin and sales volume for intermediate chemical products. A stronger Canadian dollar also negatively impacted earnings in the third quarter and the first nine months of 2007.
Corporate and other
Net income from corporate and other was negative $6 million in the third quarter, compared with $18 million in the same period of 2006. Nine-month net income was negative $105 million, versus negative $36 million last year. Unfavourable earnings effects were due mainly to higher share-based compensation charges.
LIQUIDITY AND CAPITAL RESOURCES
Cash flow from operating activities was $1,014 million during the third quarter of 2007, compared with $1,640 million in the same period last year. Lower cash flow was driven primarily by higher working capital requirements. Year-to-date cash flow from operating activities was $2,414 million, a decrease of $114 million from the first nine months of 2006. Lower cash flow was due mainly to higher working capital requirements partially offset by lower funding to employee pension plans.
Capital and exploration expenditures were $245 million in the third quarter, compared with $263 million during the same quarter of 2006, and $661 million in the first nine months of 2007, versus $868 million in the same period a year ago. Lower expenditures were primarily due to the completion of the Stage 3 upgrader expansion project at Syncrude and also the completion of the project to produce ultra-low sulphur diesel. In 2007, for the natural resources segment, capital and exploration expenditures included ongoing development drilling and programs at Cold Lake to maintain and expand production capacity, drilling at conventional fields in Western Canada and advancing the Mackenzie gas and Kearl oil sands projects. The petroleum products segment’s capital expenditures were mainly on projects to improve operating efficiency and upgrade the network of Esso retail outlets.
In the third quarter of 2007, the company retired its $250-million variable-rate loan from an affiliated company of Exxon Mobil Corporation on maturity and replaced it with a $250 million long-term variable-rate loan, also from an affiliated company of Exxon Mobil Corporation, at interest equivalent to Canadian market rates.
During the third quarter of 2007, the company repurchased about 12.8 million shares for $600 million. Under the current share-repurchase program, which began on June 25, 2007, the company has purchased about 14 million shares, and can purchase an additional 32.5 million shares before June 24, 2008 when the current program expires.
Cash dividends of $236 million were paid in the first nine months of 2007. This compared with dividends of $238 million in the same period of 2006. Increased repurchase of shares reduced the number of shares outstanding and total dividend payments. Per-share dividends declared in the first three quarters of 2007 totaled $0.26, up from $0.24 in the same period last year.
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IMPERIAL OIL LIMITED
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued .....)
The above factors led to an increase in the company’s balance of cash and marketable securities to $2,223 million at September 30, 2007, from $2,158 million at the end of 2006.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
Information about market risks for the nine months ended September 30, 2007 does not differ materially from that discussed on page 31 in the company’s annual report to shareholders for the year ended December 31, 2006 and interim report to shareholders for the quarter ended March 31, 2007 except for the following:
| Earnings sensitivity (a) | ||||||||
| millions of dollars after tax | ||||||||
| Ten cents decrease (increase) in the value of the Canadian dollar versus the U.S. dollar | + (- | ) | 400 | |||||
| Eight dollars (U.S.) a barrel change in crude oil price | + (- | ) | 320 |
The sensitivity of net income to changes in the Canadian dollar versus the U.S. dollar decreased from the first quarter 2007 by about $13 million (after tax) for each one-cent difference. This was primarily due to the impact of lower industry refining margins.
The sensitivity to changes in crude oil prices decreased from 2006 year-end by about $5 million (after tax) for each one U.S.-dollar difference. An increase in the value of the Canadian dollar has lessened the impact of U.S. dollar denominated crude oil prices on the company’s revenues and earnings.
| (a) | �� | The amount quoted to illustrate the impact of the sensitivity represents a change of about 10 percent in the value of the commodity at the end of the third quarter 2007. The sensitivity calculation shows the impact on annual net income that results from a change in one factor, after tax and royalties and holding all other factors constant. While the sensitivity is applicable under current conditions, it may not apply proportionately to larger fluctuations. |
This report may contain forward-looking information. Actual results could differ materially due to market conditions, changes in law or government policy, changes in operating conditions and costs, changes in project schedules, operating performance, demand for oil and gas, commercial negotiations or other technical and economic factors.
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IMPERIAL OIL LIMITED
CONSOLIDATED STATEMENT OF INCOME
(U.S. GAAP, unaudited)
(U.S. GAAP, unaudited)
| Nine months | ||||||||||||||||
| Third quarter | to September 30 | |||||||||||||||
| millions of Canadian dollars | 2007 | 2006 | 2007 | 2006 | ||||||||||||
REVENUES AND OTHER INCOME | ||||||||||||||||
| Operating revenues (a)(b) | 6,306 | 6,612 | 18,372 | 19,002 | ||||||||||||
| Investment and other income (4) | 124 | 39 | 331 | 155 | ||||||||||||
TOTAL REVENUES AND OTHER INCOME | 6,430 | 6,651 | 18,703 | 19,157 | ||||||||||||
EXPENSES | ||||||||||||||||
| Exploration | 19 | 5 | 90 | 18 | ||||||||||||
| Purchases of crude oil and products (c) | 3,519 | 3,832 | 10,142 | 10,834 | ||||||||||||
| Production and manufacturing (5)(d) | 846 | 772 | 2,580 | 2,619 | ||||||||||||
| Selling and general (5) | 298 | 276 | 969 | 891 | ||||||||||||
| Federal excise tax (a) | 343 | 336 | 972 | 954 | ||||||||||||
| Depreciation and depletion | 205 | 197 | 592 | 627 | ||||||||||||
| Financing costs (6)(e) | 10 | 3 | 33 | 10 | ||||||||||||
TOTAL EXPENSES | 5,240 | 5,421 | 15,378 | 15,953 | ||||||||||||
INCOME BEFORE INCOME TAXES | 1,190 | 1,230 | 3,325 | 3,204 | ||||||||||||
INCOME TAXES | 374 | 408 | 1,023 | 954 | ||||||||||||
NET INCOME (3) | 816 | 822 | 2,302 | 2,250 | ||||||||||||
| NET INCOME PER COMMON SHARE — BASIC (dollars) (9) | 0.88 | 0.84 | 2.46 | 2.29 | ||||||||||||
| NET INCOME PER COMMON SHARE — DILUTED (dollars) (9) | 0.88 | 0.84 | 2.45 | 2.28 | ||||||||||||
| DIVIDENDS PER COMMON SHARE (dollars) (9) | 0.09 | 0.08 | 0.26 | 0.24 | ||||||||||||
| (a) Federal excise tax included in operating revenues | 343 | 336 | 972 | 954 | ||||||||||||
| (b) Amounts from related parties included in operating revenues | 431 | 528 | 1,277 | 1,649 | ||||||||||||
| (c) Amounts to related parties included in purchases of crude oil and products | 893 | 1,088 | 2,440 | 3,071 | ||||||||||||
| (d) Amounts to related parties included in production and manufacturing expenses | 62 | 35 | 143 | 104 | ||||||||||||
| (e) Amounts to related parties included in financing costs | 9 | 9 | 26 | 24 | ||||||||||||
The notes to the financial statements are an integral part of these financial statements.
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IMPERIAL OIL LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
(U.S. GAAP, unaudited)
inflow/(outflow)
| Nine months | ||||||||||||||||
| Third quarter | to September 30 | |||||||||||||||
| millions of Canadian dollars | 2007 | 2006 | 2007 | 2006 | ||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
| Net income | 816 | 822 | 2,302 | 2,250 | ||||||||||||
| Adjustment for non-cash items: | ||||||||||||||||
| Depreciation and depletion | 205 | 197 | 592 | 627 | ||||||||||||
| (Gain)/loss on asset sales, after income tax (4) | (51 | ) | (7 | ) | (152 | ) | (61 | ) | ||||||||
| Deferred income taxes and other | (12 | ) | 60 | 39 | 17 | |||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | (23 | ) | 272 | (255 | ) | 292 | ||||||||||
| Inventories and prepaids | (51 | ) | (54 | ) | (249 | ) | (263 | ) | ||||||||
| Income taxes payable | 183 | 284 | (225 | ) | (11 | ) | ||||||||||
| Accounts payable | (80 | ) | 30 | 400 | (97 | ) | ||||||||||
| All other items — net (a) | 27 | 36 | (38 | ) | (226 | ) | ||||||||||
CASH FROM (USED IN) OPERATING ACTIVITIES | 1,014 | 1,640 | 2,414 | 2,528 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||
| Additions to property, plant and equipment and intangibles | (226 | ) | (258 | ) | (598 | ) | (850 | ) | ||||||||
| Proceeds from asset sales | 82 | 20 | 268 | 154 | ||||||||||||
| Loans to equity company | 1 | 2 | — | — | ||||||||||||
CASH FROM (USED IN) INVESTING ACTIVITIES | (143 | ) | (236 | ) | (330 | ) | (696 | ) | ||||||||
FINANCING ACTIVITIES | ||||||||||||||||
| Short-term debt — net | (1 | ) | — | 404 | 72 | |||||||||||
| Repayment of long-term debt | (251 | ) | — | (906 | ) | (72 | ) | |||||||||
| Long-term Debt issued | 250 | — | 500 | — | ||||||||||||
| Issuance of common shares under stock option plan | 1 | 3 | 10 | 7 | ||||||||||||
| Common shares purchased (9) | (600 | ) | (468 | ) | (1,791 | ) | (1,405 | ) | ||||||||
| Dividends paid | (84 | ) | (79 | ) | (236 | ) | (238 | ) | ||||||||
CASH FROM (USED IN) FINANCING ACTIVITIES | (685 | ) | (544 | ) | (2,019 | ) | (1,636 | ) | ||||||||
INCREASE (DECREASE) IN CASH | 186 | 860 | 65 | 196 | ||||||||||||
CASH AT BEGINNING OF PERIOD | 2,037 | 997 | 2,158 | 1,661 | ||||||||||||
CASH AT END OF PERIOD | 2,223 | 1,857 | 2,223 | 1,857 | ||||||||||||
| (a) Includes contribution to registered pension plans | (5 | ) | (13 | ) | (158 | ) | (369 | ) | ||||||||
The notes to the financial statements are an integral part of these financial statements.
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IMPERIAL OIL LIMITED
CONSOLIDATED BALANCE SHEET
(U.S. GAAP, unaudited)
| As at | As at | |||||||
| Sept. 30 | Dec. 31 | |||||||
| millions of Canadian dollars | 2007 | 2006 | ||||||
ASSETS | ||||||||
| Current assets | ||||||||
| Cash | 2,223 | 2,158 | ||||||
| Accounts receivable, less estimated doubtful accounts | 2,126 | 1,871 | ||||||
| Inventories of crude oil and products | 790 | 556 | ||||||
| Materials, supplies and prepaid expenses | 166 | 151 | ||||||
| Deferred income tax assets | 635 | 573 | ||||||
| Total current assets | 5,940 | 5,309 | ||||||
| Investments and other long-term assets | 657 | 104 | ||||||
| Property, plant and equipment, | 22,694 | 22,478 | ||||||
| less accumulated depreciation and depletion | 12,305 | 12,021 | ||||||
| Property, plant and equipment (net) | 10,389 | 10,457 | ||||||
| Goodwill | 204 | 204 | ||||||
| Other intangible assets, net | 63 | 67 | ||||||
TOTAL ASSETS | 17,253 | 16,141 | ||||||
LIABILITIES | ||||||||
| Current liabilities | ||||||||
| Short-term debt | 575 | 171 | ||||||
| Accounts payable and accrued liabilities (8)(a) | 3,485 | 3,080 | ||||||
| Income taxes payable | 1,351 | 1,190 | ||||||
| Current portion of long-term debt (7)(b) | 322 | 907 | ||||||
| Total current liabilities | 5,733 | 5,348 | ||||||
| Long-term debt (7)(c) | 538 | 359 | ||||||
| Other long-term obligations (8) | 1,775 | 1,683 | ||||||
| Deferred income tax liabilities | 1,483 | 1,345 | ||||||
TOTAL LIABILITIES | 9,529 | 8,735 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
| Common shares at stated value (9)(d) | 1,617 | 1,677 | ||||||
| Earnings reinvested (10) | 6,815 | 6,462 | ||||||
| Accumulated other comprehensive income (11) | (708 | ) | (733 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | 7,724 | 7,406 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 17,253 | 16,141 | ||||||
| (a) | Accounts payable and accrued liabilities include amounts to related parties of $221 million (2006 — $151 million). | |
| (b) | Current portion of long-term debt includes amounts to related parties of $318 million (2006 — $500 million). | |
| (c) | Long-term debt includes amounts to related parties of $500 million (2006 — $318 million). | |
| (d) | Number of common shares outstanding was 914 million (2006 — 953 million). |
The notes to the financial statements are an integral part of these financial statements.
Approved by the directors October 30, 2007
| /s/ T.J. Hearn | /s/ P.A. Smith | |
| Chairman, president and chief executive officer | Controller and senior vice-president, finance and administration |
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IMPERIAL OIL LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
1. Basis of financial statement presentation
These unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles of the United States of America 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. In the opinion of the management, the information furnished herein reflects all known accruals and adjustments necessary for a fair presentation of the financial position of the company as at September 30, 2007, and December 31, 2006, and the results of operations and changes in cash flows for the nine months ending September 30, 2007 and 2006. All such adjustments are of a normal recurring nature. The company’s exploration and production activities are accounted for under the “successful efforts” method. Certain reclassifications to the prior year have been made to conform to the 2007 presentation.
The results for the nine months ending September 30, 2007, are not necessarily indicative of the operations to be expected for the full year.
All amounts are in Canadian dollars unless otherwise indicated.
2. Accounting change for uncertainty in income taxes
Effective January 1, 2007, the company adopted the Financial Accounting Standards Board (FASB) Interpretation No. 48 (FIN 48), “Accounting for Uncertainty in Income Taxes”. FIN 48 is an interpretation of FASB Statement No. 109, “Accounting for Income Taxes” and prescribes a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements uncertain tax positions that the company has taken or expects to take in its income tax returns. Upon the adoption of FIN 48, the company recognized a transition gain of $14 million in shareholders’ equity. The gain reflected the recognition of several refund claims with associated interest, partly offset by increased income tax reserves.
The total amount of unrecognized income tax benefits at January 1, 2007, was $142 million. The company’s effective tax rate will be reduced if any of these tax benefits are subsequently recognized. The unrecognized tax benefits described above will not be included in the company’s annual Form 10-K contractual obligations table because the company does not expect that there will be any cash impact from the final settlements as sufficient general funds have been deposited with the Canada Revenue Agency (CRA).
The company’s tax filings from 2003 to 2006 are subject to examination by the tax authorities. The CRA has proposed certain adjustments to the company’s filings for several years in the period 1987 to 2002. Management is currently evaluating those proposed adjustments. Management believes that a number of outstanding matters before 2002 are expected to be resolved in 2007. The impact on unrecognized tax benefits and associated earnings effects, if any, from these matters are not expected to be material.
The company classifies interest on income tax related balances as interest expense or interest income and classifies tax related penalties as operating expense.
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3. Business Segments
| Natural | Petroleum | |||||||||||||||||||||||
| Third quarter | Resources | Products | Chemicals | |||||||||||||||||||||
| millions of dollars | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 | ||||||||||||||||||
REVENUES AND OTHER INCOME | ||||||||||||||||||||||||
| External sales (a) | 1,028 | 1,178 | 4,934 | 5,086 | 344 | 348 | ||||||||||||||||||
| Intersegment sales | 1,227 | 1,090 | 552 | 570 | 74 | 87 | ||||||||||||||||||
| Investment and other income | 85 | — | 14 | 21 | — | — | ||||||||||||||||||
| 2,340 | 2,268 | 5,500 | 5,677 | 418 | 435 | |||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
| Exploration (b) | 19 | 5 | — | — | — | — | ||||||||||||||||||
| Purchases of crude oil and products | 817 | 736 | 4,243 | 4,535 | 312 | 307 | ||||||||||||||||||
| Production and manufacturing | 479 | 453 | 321 | 271 | 46 | 49 | ||||||||||||||||||
| Selling and general | 2 | 3 | 251 | 266 | 19 | 19 | ||||||||||||||||||
| Federal excise tax | — | — | 343 | 336 | — | — | ||||||||||||||||||
| Depreciation and depletion | 141 | 131 | 59 | 61 | 4 | 3 | ||||||||||||||||||
| Financing costs | — | — | — | (2 | ) | — | — | |||||||||||||||||
TOTAL EXPENSES | 1,458 | 1,328 | 5,217 | 5,467 | 381 | 378 | ||||||||||||||||||
INCOME BEFORE INCOME TAXES | 882 | 940 | 283 | 210 | 37 | 57 | ||||||||||||||||||
INCOME TAXES | 275 | 323 | 92 | 61 | 13 | 19 | ||||||||||||||||||
NET INCOME | 607 | 617 | 191 | 149 | 24 | 38 | �� | |||||||||||||||||
Export sales to the United States | 490 | 585 | 268 | 233 | 212 | 193 | ||||||||||||||||||
Cash flows from (used in) operating activities | 760 | 1,236 | 184 | 378 | 60 | 33 | ||||||||||||||||||
CAPEX (b) | 184 | 183 | 50 | 63 | 2 | 5 | ||||||||||||||||||
| Corporate | ||||||||||||||||||||||||
| Third quarter | and Other | Eliminations | Consolidated | |||||||||||||||||||||
| millions of dollars | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 | ||||||||||||||||||
REVENUES AND OTHER INCOME | ||||||||||||||||||||||||
| External sales (a) | — | — | — | — | 6,306 | 6,612 | ||||||||||||||||||
| Intersegment sales | — | — | (1,853 | ) | (1,747 | ) | — | — | ||||||||||||||||
| Investment and other income | 25 | 18 | — | — | 124 | 39 | ||||||||||||||||||
| 25 | 18 | (1,853 | ) | (1,747 | ) | 6,430 | 6,651 | |||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
| Exploration (b) | — | — | — | — | 19 | 5 | ||||||||||||||||||
| Purchases of crude oil and products | — | — | (1,853 | ) | (1,746 | ) | 3,519 | 3,832 | ||||||||||||||||
| Production and manufacturing | — | — | — | (1 | ) | 846 | 772 | |||||||||||||||||
| Selling and general | 26 | (12 | ) | — | — | 298 | 276 | |||||||||||||||||
| Federal excise tax | — | — | — | — | 343 | 336 | ||||||||||||||||||
| Depreciation and depletion | 1 | 2 | — | — | 205 | 197 | ||||||||||||||||||
| Financing costs | 10 | 5 | — | — | 10 | 3 | ||||||||||||||||||
TOTAL EXPENSES | 37 | (5 | ) | (1,853 | ) | (1,747 | ) | 5,240 | 5,421 | |||||||||||||||
INCOME BEFORE INCOME TAXES | (12 | ) | 23 | — | — | 1,190 | 1,230 | |||||||||||||||||
INCOME TAXES | (6 | ) | 5 | — | — | 374 | 408 | |||||||||||||||||
NET INCOME | (6 | ) | 18 | — | — | 816 | 822 | |||||||||||||||||
Export sales to the United States | — | — | — | — | 970 | 1,011 | ||||||||||||||||||
Cash flows from (used in) operating activities | 10 | (7 | ) | — | — | 1,014 | 1,640 | |||||||||||||||||
CAPEX (b) | 9 | 12 | — | — | 245 | 263 | ||||||||||||||||||
| (a) | Includes crude oil sales made by Products in order to optimize refining operations. | |
| (b) | Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant, equipment and intangibles and additions to capital leases. |
5
IMPERIAL OIL LIMITED
| Natural | Petroleum | |||||||||||||||||||||||
| Nine months to September 30 | Resources | Products | Chemicals | |||||||||||||||||||||
| millions of dollars | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 | ||||||||||||||||||
REVENUES AND OTHER INCOME | ||||||||||||||||||||||||
| External sales (a) | 3,377 | 3,584 | 14,016 | 14,367 | 979 | 1,051 | ||||||||||||||||||
| Intersegment sales | 2,977 | 2,942 | 1,609 | 1,776 | 247 | 255 | ||||||||||||||||||
| Investment and other income | 225 | 65 | 38 | 44 | — | — | ||||||||||||||||||
| 6,579 | 6,591 | 15,663 | 16,187 | 1,226 | 1,306 | |||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
| Exploration (b) | 90 | 18 | — | — | — | — | ||||||||||||||||||
| Purchases of crude oil and products | 2,241 | 2,201 | 11,821 | 12,678 | 913 | 926 | ||||||||||||||||||
| Production and manufacturing | 1,515 | 1,498 | 925 | 976 | 140 | 147 | ||||||||||||||||||
| Selling and general | 6 | 10 | 728 | 751 | 54 | 58 | ||||||||||||||||||
| Federal excise tax | — | — | 972 | 954 | — | — | ||||||||||||||||||
| Depreciation and depletion | 399 | 443 | 180 | 172 | 9 | 9 | ||||||||||||||||||
| Financing costs | 3 | — | 1 | (2 | ) | — | — | |||||||||||||||||
TOTAL EXPENSES | 4,254 | 4,170 | 14,627 | 15,529 | 1,116 | 1,140 | ||||||||||||||||||
INCOME BEFORE INCOME TAXES | 2,325 | 2,421 | 1,036 | 658 | 110 | 166 | ||||||||||||||||||
INCOME TAXES | 695 | 653 | 333 | 248 | 36 | 58 | ||||||||||||||||||
NET INCOME | 1,630 | 1,768 | 703 | 410 | 74 | 108 | ||||||||||||||||||
Export sales to the United States | 1,512 | 1,540 | 770 | 725 | 576 | 608 | ||||||||||||||||||
Cash flows from (used in) operating activities | 1,702 | 2,052 | 656 | 447 | 1 | 100 | ||||||||||||||||||
CAPEX (b) | 495 | 544 | 133 | 278 | 8 | 9 | ||||||||||||||||||
Total assets as at September 30 | 7,923 | 7,325 | 6,889 | 6,429 | 499 | 489 | ||||||||||||||||||
Capital employed as at September 30 | 4,143 | 4,135 | 3,476 | 3,214 | 323 | 286 | ||||||||||||||||||
| Corporate | ||||||||||||||||||||||||
| Nine months to September 30 | and Other | Eliminations | Consolidated | |||||||||||||||||||||
| millions of dollars | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 | ||||||||||||||||||
REVENUES AND OTHER INCOME | ||||||||||||||||||||||||
| External sales (a) | — | — | — | — | 18,372 | 19,002 | ||||||||||||||||||
| Intersegment sales | — | — | (4,833 | ) | (4,973 | ) | — | — | ||||||||||||||||
| Investment and other income | 68 | 46 | — | — | 331 | 155 | ||||||||||||||||||
| 68 | 46 | (4,833 | ) | (4,973 | ) | 18,703 | 19,157 | |||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
| Exploration (b) | — | — | — | — | 90 | 18 | ||||||||||||||||||
| Purchases of crude oil and products | — | — | (4,833 | ) | (4,971 | ) | 10,142 | 10,834 | ||||||||||||||||
| Production and manufacturing | — | — | — | (2 | ) | 2,580 | 2,619 | |||||||||||||||||
| Selling and general | 181 | 72 | — | — | 969 | 891 | ||||||||||||||||||
| Federal excise tax | — | — | — | — | 972 | 954 | ||||||||||||||||||
| Depreciation and depletion | 4 | 3 | — | — | 592 | 627 | ||||||||||||||||||
| Financing costs | 29 | 12 | — | — | 33 | 10 | ||||||||||||||||||
TOTAL EXPENSES | 214 | 87 | (4,833 | ) | (4,973 | ) | 15,378 | 15,953 | ||||||||||||||||
INCOME BEFORE INCOME TAXES | (146 | ) | (41 | ) | — | — | 3,325 | 3,204 | ||||||||||||||||
INCOME TAXES | (41 | ) | (5 | ) | — | — | 1,023 | 954 | ||||||||||||||||
NET INCOME | (105 | ) | (36 | ) | — | — | 2,302 | 2,250 | ||||||||||||||||
Export sales to the United States | — | — | — | — | 2,858 | 2,873 | ||||||||||||||||||
Cash flows from (used in) operating activities | 55 | (71 | ) | — | — | 2,414 | 2,528 | |||||||||||||||||
CAPEX (b) | 25 | 37 | — | — | 661 | 868 | ||||||||||||||||||
Total assets as at September 30 | 2,256 | 2,147 | (314 | ) | (482 | ) | 17,253 | 15,908 | ||||||||||||||||
Capital employed as at September 30 | 1,273 | 1,111 | — | — | 9,215 | 8,746 | ||||||||||||||||||
| (a) | Includes crude oil sales made by Products in order to optimize refining operations. | |
| (b) | Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant, equipment and intangibles and additions to capital leases. |
6
IMPERIAL OIL LIMITED
4. Investment and other income
Investment and other income includes gains and losses on asset sales as follows:
| Nine months | ||||||||||||||||
| Third quarter | to September 30 | |||||||||||||||
| millions of dollars | 2007 | 2006 | 2007 | 2006 | ||||||||||||
| Proceeds from asset sales | 82 | 20 | 268 | 154 | ||||||||||||
| Book value of assets sold | 10 | 13 | 57 | 69 | ||||||||||||
| Gain/(loss) on asset sales, before tax (a) | 72 | 7 | 211 | 85 | ||||||||||||
| Gain/(loss) on asset sales, after tax (a) | 51 | 7 | 152 | 61 | ||||||||||||
| (a) | Third quarter 2007 included a gain of $71 million ($51million after tax) from the sale of the company’s interest in the Willesden Green producing property. |
5. Employee retirement benefits
The components of net benefit cost included in production and manufacturing and selling and general expenses in the consolidated statement of
income are as follows:
income are as follows:
| Nine months | ||||||||||||||||
| Third quarter | to September 30 | |||||||||||||||
| millions of dollars | 2007 | 2006 | 2007 | 2006 | ||||||||||||
| Pension benefits: | ||||||||||||||||
| Current service cost | 25 | 25 | 75 | 75 | ||||||||||||
| Interest cost | 62 | 60 | 185 | 179 | ||||||||||||
| Expected return on plan assets | (83 | ) | (75 | ) | (247 | ) | (225 | ) | ||||||||
| Amortization of prior service cost | 5 | 5 | 15 | 15 | ||||||||||||
| Recognized actuarial loss | 19 | 29 | 57 | 86 | ||||||||||||
| Net benefit cost | 28 | 44 | 85 | 130 | ||||||||||||
| Other post-retirement benefits: | ||||||||||||||||
| Current service cost | 1 | 2 | 4 | 6 | ||||||||||||
| Interest cost | 5 | 6 | 17 | 18 | ||||||||||||
| Recognized actuarial loss | 2 | 2 | 5 | 6 | ||||||||||||
| Net benefit cost | 8 | 10 | 26 | 30 | ||||||||||||
6. Financing costs
| Nine months | ||||||||||||||||
| Third quarter | to September 30 | |||||||||||||||
| millions of dollars | 2007 | 2006 | 2007 | 2006 | ||||||||||||
| Debt related interest | 18 | 17 | 51 | 46 | ||||||||||||
| Capitalized interest | (9 | ) | (13 | ) | (25 | ) | (37 | ) | ||||||||
| Net interest expense | 9 | 4 | 26 | 9 | ||||||||||||
| Other interest | 1 | (1 | ) | 7 | 1 | |||||||||||
| Total financing costs | 10 | 3 | 33 | 10 | ||||||||||||
7. Long-term debt
| As at | As at | ||||||||
| Sept.30 | Dec.31 | ||||||||
| 2007 | 2006 | ||||||||
| Issued | Maturity date | Interest rate | millions of dollars | ||||||
| 2003 | January 19, 2008 | Variable | — | 318 | |||||
| 2007 | $250 million due May 26, 2009 and | ||||||||
| $250 million due August 26, 2009 (a) | Variable | 500 | — | ||||||
| Long-term debt | 500 | 318 | |||||||
| Capital leases | 38 | 41 | |||||||
| Total long-term debt (b) | 538 | 359 | |||||||
| (a) | On August 26, 2007, the company retired $250 million variable-rate debt on maturity and replaced it with long-term variable-rate loans of $250 million from an affiliated company of Exxon Mobil Corporation at interest equivalent to Canadian market rates. | |
| (b) | These amounts exclude that portion of long-term debt totalling $322 million (December 31, 2006 — $907 million), which matures within one year and is included in current liabilities. |
7
IMPERIAL OIL LIMITED
8. Other long-term obligations
| As at | As at | |||||||
| Sept.30 | Dec.31 | |||||||
| millions of dollars | 2007 | 2006 | ||||||
| Employee retirement benefits (a) | 881 | 1,017 | ||||||
| Asset retirement obligations and other environmental liabilities (b) | 441 | 438 | ||||||
| Other obligations | 453 | 228 | ||||||
| Total other long-term obligations | 1,775 | 1,683 | ||||||
| (a) | Total recorded employee retirement benefits obligations also include $55 million in current liabilities (December 31, 2006 — $51 million). | |
| (b) | Total asset retirement obligations and other environmental liabilities also include $97 million in current liabilities (December 31, 2006 — $97 million). |
9. Common shares
| As at | As at | |||||||
| Sept.30 | Dec.31 | |||||||
| thousands of shares | 2007 | 2006 | ||||||
| Authorized | 1,100,000 | 1,100,000 | ||||||
| Common shares outstanding | 914,216 | 952,988 | ||||||
From 1995 through 2006, the company purchased shares under twelve 12-month normal course issuer bid share repurchase programs, as well as an auction tender. On June 25, 2007, another 12-month normal course issuer bid program was implemented with an allowable purchase of about 46.5 million shares (five percent of the total on June 22, 2007), less any shares purchased by the employee savings plan and company pension fund. The results of these activities are as shown below:
| millions of | ||||||||
| Year | Shares | Dollars | ||||||
| 1995 - 2005 | 750.1 | 8,635 | ||||||
| 2006 - Third quarter | 11.5 | 468 | ||||||
| - Full year | 45.5 | 1,818 | ||||||
2007 - Third quarter | 12.8 | 600 | ||||||
- Year-to-date | 39.4 | 1,791 | ||||||
| Cumulative purchases to date | 835.0 | 12,244 | ||||||
Exxon Mobil Corporation’s participation in the above share repurchase maintained its ownership interest in Imperial at 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.
8
IMPERIAL OIL LIMITED
The following table provides the calculation of net income per common share:
| Nine months | ||||||||||||||||
| Third quarter | to September 30 | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
Net income per common share — basic | ||||||||||||||||
| Net income (millions of dollars) | 816 | 822 | 2,302 | 2,250 | ||||||||||||
| Weighted average number of common shares outstanding (millions of shares) | 922.0 | 969.6 | 935.0 | 980.7 | ||||||||||||
| Net income per common share (dollars) | 0.88 | 0.84 | 2.46 | 2.29 | ||||||||||||
Net income per common share — diluted | ||||||||||||||||
| Net income (millions of dollars) | 816 | 822 | 2,302 | 2,250 | ||||||||||||
| Weighted average number of common shares outstanding (millions of shares) | 922.0 | 969.6 | 935.0 | 980.7 | ||||||||||||
| Effect of employee stock-based awards (millions of shares) | 5.9 | 4.5 | 5.7 | 4.4 | ||||||||||||
| Weighted average number of common shares outstanding, assuming dilution (millions of shares) | 927.9 | 974.1 | 940.7 | 985.1 | ||||||||||||
| Net income per common share (dollars) | 0.88 | 0.84 | 2.45 | 2.28 | ||||||||||||
10. Earnings reinvested
| Nine months | ||||||||||||||||
| Third quarter | to September 30 | |||||||||||||||
| millions of dollars | 2007 | 2006 | 2007 | 2006 | ||||||||||||
| Earnings reinvested at beginning of period | 6,659 | 5,841 | 6,462 | 5,466 | ||||||||||||
| Cumulative effect of accounting change (2) | — | — | 14 | — | ||||||||||||
| Net income for the period | 816 | 822 | 2,302 | 2,250 | ||||||||||||
| Share purchases in excess of stated value | (577 | ) | (448 | ) | (1,721 | ) | (1,343 | ) | ||||||||
| Dividends | (83 | ) | (77 | ) | (242 | ) | (235 | ) | ||||||||
| Earnings reinvested at end of period | 6,815 | 6,138 | 6,815 | 6,138 | ||||||||||||
11. Comprehensive income
| Nine months | ||||||||||||||||
| Third quarter | to September 30 | |||||||||||||||
| millions of dollars | 2007 | 2006 | 2007 | 2006 | ||||||||||||
| Net income | 816 | 822 | 2,302 | 2,250 | ||||||||||||
| Post-retirement benefit liability adjustment (excluding amortization) | — | — | (28 | ) | — | |||||||||||
| Amortization of post retirement benefit liability adjustment included in net periodic benefit costs | 18 | — | 53 | — | ||||||||||||
| Other comprehensive income (net of income taxes) | 18 | — | 25 | — | ||||||||||||
| Total comprehensive income | 834 | 822 | 2,327 | 2,250 | ||||||||||||
12. Additional SFAS 158 Adoption Disclosure
In its 2006 Form 10-K financial statements, the company reported the adjustment related to the adoption of Statement of Financial Accounting Standards No. 158 (SFAS 158), “Employers’ Accounting for Defined Benefit Pension and Other Post-retirement Plans, an amendment to FASB Statements No. 87, 88, 106 and 132(R)” as a component of 2006 comprehensive income. Based on further regulatory guidance, this adjustment should have been reported as an adjustment to ending 2006 accumulated other comprehensive income. The amount reported by the company as 2006 comprehensive income (nonowner changes in equity) was $2,891 million. Excluding the negative $487 million SFAS 158 adoption adjustment (which was separately disclosed in the 2006 Form 10-K footnote 6, Employee retirement benefits), the amount would have been $3,378 million. The company will accordingly revise the presentation of 2006 comprehensive income (nonowner changes in equity) in its 2007 Form 10-K financial statements.
9
IMPERIAL OIL LIMITED
OPERATING STATISTICS
(unaudited)
| Nine months | ||||||||||||||||
| Third quarter | to September 30 | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
GROSS CRUDE OIL AND NGL PRODUCTION (thousands of barrels a day) | ||||||||||||||||
| Cold Lake | 160 | 158 | 152 | 155 | ||||||||||||
| Syncrude | 87 | 71 | 76 | 61 | ||||||||||||
| Conventional | 28 | 31 | 29 | 32 | ||||||||||||
| Total crude oil production | 275 | 260 | 257 | 248 | ||||||||||||
| Natural gas liquids (NGLs) available for sale | 16 | 21 | 17 | 25 | ||||||||||||
| Total crude oil and NGL production | 291 | 281 | 274 | 273 | ||||||||||||
NET CRUDE OIL AND NGL PRODUCTION (thousands of barrels a day) | ||||||||||||||||
| Cold Lake | 132 | 127 | 127 | 128 | ||||||||||||
| Syncrude | 72 | 60 | 64 | 55 | ||||||||||||
| Conventional | 21 | 23 | 22 | 24 | ||||||||||||
| Total crude oil production | 225 | 210 | 213 | 207 | ||||||||||||
| Natural gas liquids (NGLs) available for sale | 11 | 17 | 13 | 20 | ||||||||||||
| Total crude oil and NGL production | 236 | 227 | 226 | 227 | ||||||||||||
COLD LAKE BLEND SALES(thousands of barrels a day) | 202 | 201 | 197 | 203 | ||||||||||||
NGL SALES(thousands of barrels a day) | 16 | 19 | 20 | 28 | ||||||||||||
NATURAL GAS(millions of cubic feet a day) | ||||||||||||||||
| Production (gross) | 430 | 560 | 482 | 566 | ||||||||||||
| Production (net) | 379 | 503 | 423 | 505 | ||||||||||||
| Sales | 378 | 515 | 432 | 519 | ||||||||||||
AVERAGE REALIZATIONS AND PRICES(Canadian dollars) | ||||||||||||||||
| Conventional crude oil realizations (a barrel) | 75.73 | 74.34 | 68.45 | 71.10 | ||||||||||||
| NGL realizations (a barrel) | 45.57 | 40.87 | 44.94 | 40.81 | ||||||||||||
| Natural gas realizations (a thousand cubic feet) | 5.73 | 6.29 | 7.11 | 7.42 | ||||||||||||
| Par crude oil price at Edmonton (a barrel) | 82.07 | 80.31 | 74.50 | 76.53 | ||||||||||||
| Heavy crude oil at Hardisty (Bow River, a barrel) | 56.17 | 59.03 | 52.97 | 53.66 | ||||||||||||
TOTAL REFINERY THROUGHPUT(thousands of barrels a day) | 451 | 461 | 435 | 438 | ||||||||||||
REFINERY CAPACITY UTILIZATION(percent) | 90 | 92 | 86 | 87 | ||||||||||||
PETROLEUM PRODUCTS SALES(millions of litres a day) | ||||||||||||||||
| Gasolines | 33.8 | 34.1 | 32.6 | 32.5 | ||||||||||||
| Heating, diesel and jet fuels | 25.2 | 26.0 | 25.8 | 26.3 | ||||||||||||
| Heavy fuel oils | 6.2 | 5.1 | 5.0 | 5.0 | ||||||||||||
| Lube oils and other products | 7.7 | 9.0 | 7.1 | 7.8 | ||||||||||||
| Net petroleum products sales | 72.9 | 74.2 | 70.5 | 71.6 | ||||||||||||
PETROCHEMICAL SALES(thousands of tonnes a day) | 3.2 | 2.9 | 3.1 | 3.0 | ||||||||||||
10
IMPERIAL OIL LIMITED
SHARE OWNERSHIP, TRADING AND PERFORMANCE
(unaudited)
(unaudited)
| Nine months | ||||||||||||||||
| Third quarter | to September 30 | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
RETURN ON AVERAGE CAPITAL EMPLOYED (a) | ||||||||||||||||
| (rolling 4 quarters, percent) | 34.4 | 39.1 | ||||||||||||||
RETURN ON AVERAGE SHAREHOLDERS’ EQUITY | ||||||||||||||||
| (rolling 4 quarters, percent) | 40.9 | 47.6 | ||||||||||||||
INTEREST COVERAGE RATIO — EARNINGS BASIS | ||||||||||||||||
| (rolling 4 quarters, times covered) | 63.1 | 81.7 | ||||||||||||||
SHARE OWNERSHIP | ||||||||||||||||
| Outstanding shares (thousands) | ||||||||||||||||
| Monthly weighted average | 921,976 | 969,625 | 934,950 | 980,711 | ||||||||||||
| At September 30 | 914,216 | 962,713 | ||||||||||||||
| Number of shareholders | ||||||||||||||||
| At September 30 | 13,141 | 13,664 | ||||||||||||||
SHARE PRICES | ||||||||||||||||
| Toronto Stock Exchange (Canadian dollars) | ||||||||||||||||
| High | 51.90 | 45.20 | 54.70 | 45.20 | ||||||||||||
| Low | 40.86 | 35.33 | 37.40 | 35.33 | ||||||||||||
| Close at September 30 | 49.29 | 37.47 | ||||||||||||||
| American Stock Exchange (U.S. dollars) (b) | ||||||||||||||||
| High | 50.95 | 40.38 | 50.95 | 40.38 | ||||||||||||
| Low | 37.99 | 31.64 | 31.87 | 30.54 | ||||||||||||
| Close at September 30 | 49.56 | 33.55 | ||||||||||||||
| (a) | Return on capital employed is the rolling four quarters’ net income excluding the after-tax net interest expense divided by the average rolling four quarters’ capital employed. | |
| (b) | Share price presented is based on consolidated U.S. market data. |