Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Document Transition Report | false |
Entity Central Index Key | 0000049938 |
Current Fiscal Year End Date | --12-31 |
Document Quarterly Report | true |
Entity Registrant Name | IMPERIAL OIL LIMITED |
Amendment Flag | false |
Entity Filer Category | Large Accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Entity File Number | 0-12014 |
Entity Small Business | false |
Entity Incorporation, State or Country Code | CA |
Entity Emerging Growth Company | false |
Entity Address, Address Line One | 505 Quarry Park Boulevard S.E. |
Entity Tax Identification Number | 98-0017682 |
Entity Address, City or Town | Calgary |
Entity Address, State or Province | AB |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | T2C 5N1 |
City Area Code | 800 |
Local Phone Number | 567-3776 |
Entity Common Stock, Shares Outstanding | 704,578,328 |
Consolidated statement of incom
Consolidated statement of income - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||||||
Revenues and other income | |||||||||
Revenues | [1] | $ 8,007 | [2] | $ 3,666 | [2] | $ 14,999 | [3] | $ 10,330 | [3] |
Investment and other income (note 3) | 40 | 44 | 46 | 70 | |||||
Total revenues and other income | 8,047 | 3,710 | 15,045 | 10,400 | |||||
Expenses | |||||||||
Exploration | 2 | 3 | 4 | 4 | |||||
Purchases of crude oil and products (note 11) | [4] | 4,867 | 2,115 | 8,754 | 6,341 | ||||
Production and manufacturing | [5] | 1,569 | 1,273 | 3,054 | 2,852 | ||||
Selling and general | [5] | 200 | 183 | 389 | 349 | ||||
Federal excise tax and fuel charge | 465 | 369 | 869 | 820 | |||||
Depreciation and depletion (note 11) | 450 | 413 | 944 | 886 | |||||
Non-service pension and postretirement benefit | 10 | 30 | 21 | 60 | |||||
Financing (note 5) | [6] | 13 | 17 | 27 | 36 | ||||
Total expenses | 7,576 | 4,403 | 14,062 | 11,348 | |||||
Income (loss) before income taxes | 471 | (693) | 983 | (948) | |||||
Income taxes | 105 | (167) | 225 | (234) | |||||
Net income (loss) | $ 366 | $ (526) | $ 758 | $ (714) | |||||
Per share information (Canadian dollars) | |||||||||
Net income (loss) per common share - basic (note 9) | $ 0.51 | $ (0.72) | $ 1.04 | $ (0.97) | |||||
Net income (loss) per common share - diluted (note 9) | $ 0.50 | $ (0.72) | $ 1.04 | $ (0.97) | |||||
[1] | Amounts from related parties included in revenues. 1,405 747 2,913 2,483 | ||||||||
[2] | Included export sales to the United States of $1,544 million (2020 - $739 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. | ||||||||
[3] | Included export sales to the United States of $3,113 million (2020 - $2,112 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. | ||||||||
[4] | Amounts to related parties included in purchases of crude oil and products. 666 396 1,181 1,135 | ||||||||
[5] | Amounts to related parties included in production and manufacturing, and selling and general expenses. 106 138 222 321 | ||||||||
[6] | Amounts to related parties included in financing, (note 5). 10 14 21 38 |
Consolidated statement of inc_2
Consolidated statement of income (Parenthetical) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Amounts from related parties included in revenues. | $ 1,405 | $ 747 | $ 2,913 | $ 2,483 |
Amounts to related parties included in purchases of crude oil and products. | 666 | 396 | 1,181 | 1,135 |
Amounts to related parties included in production and manufacturing, and selling and general expenses. | 106 | 138 | 222 | 321 |
Amounts to related parties included in financing, (note 5). | $ 10 | $ 14 | $ 21 | $ 38 |
Consolidated statement of compr
Consolidated statement of comprehensive income - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net income (loss) | $ 366 | $ (526) | $ 758 | $ (714) |
Other comprehensive income (loss), net of income taxes | ||||
Postretirement benefits liability adjustment (excluding amortization) | 54 | (114) | ||
Amortization of postretirement benefits liability adjustment included in net periodic benefit costs | 33 | 34 | 66 | 68 |
Total other comprehensive income (loss) | 33 | 34 | 120 | (46) |
Comprehensive income (loss) | $ 399 | $ (492) | $ 878 | $ (760) |
Consolidated balance sheet
Consolidated balance sheet - CAD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | ||
Current assets | ||||
Cash | $ 776 | [1] | $ 771 | |
Accounts receivable - net | [2] | 3,163 | 1,919 | |
Inventories of crude oil and products | 1,213 | 1,161 | ||
Materials, supplies and prepaid expenses | 722 | 673 | ||
Total current assets | 5,874 | 4,524 | ||
Investments and long-term receivables | [3] | 748 | 781 | |
Property, plant and equipment, | 56,257 | 55,771 | ||
less accumulated depreciation and depletion | (24,664) | (23,737) | ||
Property, plant and equipment, net | 31,593 | 32,034 | ||
Goodwill (note 11) | 166 | 166 | ||
Other assets, including intangibles - net | 558 | 526 | ||
Total assets | 38,939 | 38,031 | ||
Current liabilities | ||||
Notes and loans payable | [4] | 197 | 227 | |
Accounts payable and accrued liabilities (note 7) | [2] | 4,411 | 3,153 | |
Income taxes payable | 42 | |||
Total current liabilities | 4,650 | 3,380 | ||
Long-term debt (note 6) | [5] | 5,065 | 4,957 | |
Other long-term obligations (note 7) | 4,061 | 4,100 | ||
Deferred income tax liabilities | 4,394 | 4,176 | ||
Total liabilities | 18,170 | 16,613 | ||
Shareholders' equity | ||||
Common shares at stated value (note 9) | [6] | 1,302 | 1,357 | |
Earnings reinvested | 21,336 | 22,050 | ||
Accumulated other comprehensive income (loss) (note 10) | (1,869) | (1,989) | ||
Total shareholders' equity | 20,769 | 21,418 | ||
Total liabilities and shareholders' equity | $ 38,939 | $ 38,031 | ||
[1] | 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. | |||
[2] | Accounts receivable - net included net amounts receivable from related parties of $582 million (2020 - $384 million). | |||
[3] | Investments and long-term receivables included amounts from related parties of $301 million (2020 - $313 million). | |||
[4] | Notes and loans payable included amounts to related parties of $75 million (2020 - $111 million). | |||
[5] | Long-term debt included amounts to related parties of $4,447 million (2020 - $4,447 million). | |||
[6] | Number of common shares authorized and outstanding were 1,100 million and 705 million, respectively (2020 - 1,100 million and 734 million, respectively). |
Consolidated balance sheet (Par
Consolidated balance sheet (Parenthetical) - CAD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Amounts receivable (payable) from (to) related parties | $ 582 | $ 384 |
Common shares authorized | 1,100,000,000 | 1,100,000,000 |
Common shares outstanding | 705,000,000 | 734,000,000 |
Investments and Long Term Receivables | ||
Due from related parties | $ 301 | $ 313 |
Long-term debt | ||
Due to related parties | 4,447 | 4,447 |
Notes and loans payable | ||
Due to related parties, current | $ 75 | $ 111 |
Consolidated statement of share
Consolidated statement of shareholders' equity - CAD ($) $ in Millions | Total | Common shares at stated value (note 9) | Earnings reinvested | Accumulated other comprehensive income (loss) (note 10) |
At beginning of period at Dec. 31, 2019 | $ 1,375 | $ 24,812 | $ (1,911) | |
Net income (loss) for the period | $ (714) | (714) | ||
Share purchases at stated value | (18) | |||
Share purchases in excess of stated value | (256) | |||
Dividends declared | (324) | |||
Other comprehensive income (loss) | (46) | (46) | ||
At end of period at Jun. 30, 2020 | 22,916 | 1,357 | 23,516 | (1,957) |
At beginning of period at Dec. 31, 2019 | 1,375 | 24,812 | (1,911) | |
Share purchases at stated value | (18) | |||
At end of period at Dec. 31, 2020 | 21,418 | 1,357 | 22,050 | (1,989) |
At beginning of period at Mar. 31, 2020 | 1,357 | 24,204 | (1,991) | |
Net income (loss) for the period | (526) | (526) | ||
Share purchases at stated value | ||||
Share purchases in excess of stated value | ||||
Dividends declared | (162) | |||
Other comprehensive income (loss) | 34 | 34 | ||
At end of period at Jun. 30, 2020 | 22,916 | 1,357 | 23,516 | (1,957) |
Cumulative effect of accounting change | (2) | |||
Cumulative effect of accounting change | 22,050 | |||
At beginning of period at Dec. 31, 2020 | 21,418 | 1,357 | 22,050 | (1,989) |
Net income (loss) for the period | 758 | 758 | ||
Share purchases at stated value | (55) | |||
Share purchases in excess of stated value | (1,116) | |||
Dividends declared | (356) | |||
Other comprehensive income (loss) | 120 | 120 | ||
At end of period at Jun. 30, 2021 | 20,769 | 1,302 | 21,336 | (1,869) |
At beginning of period at Mar. 31, 2021 | 1,357 | 22,281 | (1,902) | |
Net income (loss) for the period | 366 | 366 | ||
Share purchases at stated value | (55) | |||
Share purchases in excess of stated value | (1,116) | |||
Dividends declared | (195) | |||
Other comprehensive income (loss) | 33 | 33 | ||
At end of period at Jun. 30, 2021 | 20,769 | $ 1,302 | 21,336 | $ (1,869) |
Cumulative effect of accounting change | $ 21,336 |
Consolidated statement of cash
Consolidated statement of cash flows - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Operating activities | |||||
Net income (loss) | $ 366 | $ (526) | $ 758 | $ (714) | |
Adjustments for non-cash items: | |||||
Depreciation and depletion | 450 | 413 | 944 | 866 | |
Impairment of intangible assets (note 11) | 20 | ||||
(Gain) loss on asset sales (note 3) | (24) | (10) | (27) | (17) | |
Inventory write-down to current market value (note 11) | (281) | ||||
Deferred income taxes and other | 76 | (242) | 136 | (199) | |
Changes in operating assets and liabilities: | |||||
Accounts receivable | (775) | (310) | (1,244) | 833 | |
Inventories, materials, supplies and prepaid expenses | 58 | 117 | (101) | (82) | |
Income taxes payable | 21 | (2) | 42 | (106) | |
Accounts payable and accrued liabilities | 655 | (46) | 1,239 | (1,074) | |
All other items - net | [1] | 25 | 71 | 150 | 80 |
Cash flows from (used in) operating activities | 852 | (816) | 1,897 | (393) | |
Investing activities | |||||
Additions to property, plant and equipment | (241) | (205) | (408) | (515) | |
Proceeds from asset sales (note 3) | 35 | 40 | 42 | 49 | |
Loans to equity companies - net | (1) | (7) | 12 | (14) | |
Cash flows from (used in) investing activities | (207) | (172) | (354) | (480) | |
Financing activities | |||||
Short-term debt - net | 0 | 0 | (36) | 0 | |
Reduction in finance lease obligations (note 6) | (4) | (5) | (8) | (12) | |
Dividends paid | (161) | (162) | (323) | (326) | |
Common shares purchased (note 9) | (1,171) | 0 | (1,171) | (274) | |
Cash flows from (used in) financing activities | (1,336) | (167) | (1,538) | (612) | |
Increase (decrease) in cash | (691) | (1,155) | 5 | (1,485) | |
Cash at beginning of period | 1,467 | 1,388 | 771 | 1,718 | |
Cash at end of period | [2] | $ 776 | $ 233 | $ 776 | $ 233 |
[1] | Included contributions to registered pension plans. (42) (41) (70) (100) | ||||
[2] | 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. |
Consolidated statement of cas_2
Consolidated statement of cash flows (Parenthetical) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Included contributions to registered pension plans | $ (42) | $ (41) | $ (70) | $ (100) |
Income taxes (paid) refunded | 27 | 1 | 28 | (152) |
Interest (paid), net of capitalization | $ (14) | $ (17) | $ (27) | $ (36) |
Basis of financial statement pr
Basis of financial statement preparation | 6 Months Ended |
Jun. 30, 2021 | |
Basis of financial statement preparation | 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 2020 annual report on Form 10-K. The company’s exploration and production activities are accounted for under the “successful efforts” method. The results for the six months ended June 30, 2021, are not necessarily indicative of the operations to be expected for the full year. All amounts are in Canadian dollars unless otherwise indicated. |
Business segments
Business segments | 6 Months Ended |
Jun. 30, 2021 | |
Business segments | 2. Business segments Second Quarter Upstream Downstream Chemical millions of Canadian dollars 2021 2020 2021 2020 2021 2020 Revenues and other income Revenues (a) 2,616 908 5,015 2,587 376 171 Intersegment sales 1,312 262 788 124 79 27 Investment and other income (note 3) 6 10 28 27 1 1 3,934 1,180 5,831 2,738 456 199 Expenses Exploration 2 3 - - - - Purchases of crude oil and products (note 11) 2,044 512 4,760 1,896 240 119 Production and manufacturing 1,166 884 357 343 46 46 Selling and general - - 142 135 22 21 Federal excise tax and fuel charge - - 465 369 - - Depreciation and depletion (note 11) 399 363 39 40 5 4 Non-service - - - - - - Financing (note 5) - - - - - - Total expenses 3,611 1,762 5,763 2,783 313 190 Income (loss) before income taxes 323 (582) 68 (45) 143 9 Income taxes 76 (138) 8 (13) 34 2 Net income (loss) 247 (444) 60 (32) 109 7 Cash flows from (used in) operating activities 595 (968) 136 88 111 46 Capital and exploration expenditures (b) 130 145 120 51 2 2 Second Quarter Corporate and other Eliminations Consolidated millions of Canadian dollars 2021 2020 2021 2020 2021 2020 Revenues and other income Revenues (a) - - - - 8,007 3,666 Intersegment sales - - (2,179) (413) - - Investment and other income (note 3) 5 6 - - 40 44 5 6 (2,179) (413) 8,047 3,710 Expenses Exploration - - - - 2 3 Purchases of crude oil and products (note 11) - - (2,177) (412) 4,867 2,115 Production and manufacturing - - - - 1,569 1,273 Selling and general 38 28 (2) (1) 200 183 Federal excise tax and fuel charge - - - - 465 369 Depreciation and depletion (note 11) 7 6 - - 450 413 Non-service 10 30 - - 10 30 Financing (note 5) 13 17 - - 13 17 Total expenses 68 81 (2,179) (413) 7,576 4,403 Income (loss) before income taxes (63) (75) - - 471 (693) Income taxes (13) (18) - - 105 (167) Net income (loss) (50) (57) - - 366 (526) Cash flows from (used in) operating activities 10 1 - 17 852 (816) Capital and exploration expenditures (b) 7 9 - - 259 207 (a) Included export sales to the United States of $1,544 million (2020 - $739 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. (b) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits. Six Months to June 30 Upstream Downstream Chemical millions of Canadian dollars 2021 2020 2021 2020 2021 2020 Revenues and other income Revenues (a) 4,758 2,560 9,542 7,383 699 387 Intersegment sales 2,663 984 1,561 692 132 71 Investment and other income (note 3) 6 10 33 42 1 1 7,427 3,554 11,136 8,117 832 459 Expenses Exploration 4 4 - - - - Purchases of crude oil and products (note 11) 3,878 2,162 8,780 5,665 449 259 Production and manufacturing 2,275 1,992 683 751 96 109 Selling and general - - 275 316 47 46 Federal excise tax and fuel charge - - 869 820 - - Depreciation and depletion (note 11) 844 780 78 86 9 8 Non-service - - - - - - Financing (note 5) 1 - - - - - Total expenses 7,002 4,938 10,685 7,638 601 422 Income (loss) before income taxes 425 (1,384) 451 479 231 37 Income tax expense (benefit) 99 (332) 99 109 55 9 Net income (loss) 326 (1,052) 352 370 176 28 Cash flows from (used in) operating activities 1,126 (504) 598 110 173 43 Capital and exploration expenditures (b) 215 376 188 127 4 11 Total assets as at June 30 (note 11) 31,931 33,591 5,352 4,683 481 404 Six Months to June 30 Corporate and other Eliminations Consolidated millions of Canadian dollars 2021 2020 2021 2020 2021 2020 Revenues and other income Revenues (a) - - - - 14,999 10,330 Intersegment sales - - (4,356) (1,747) - - Investment and other income (note 3) 6 17 - - 46 70 6 17 (4,356) (1,747) 15,045 10,400 Expenses Exploration - - - - 4 4 Purchases of crude oil and products (note 11) - - (4,353) (1,745) 8,754 6,341 Production and manufacturing - - - - 3,054 2,852 Selling and general 70 (11) (3) (2) 389 349 Federal excise tax and fuel charge - - - - 869 820 Depreciation and depletion (note 11) 13 12 - - 944 886 Non-service 21 60 - - 21 60 Financing (note 5) 26 36 - - 27 36 Total expenses 130 97 (4,356) (1,747) 14,062 11,348 Income (loss) before income taxes (124) (80) - - 983 (948) Income tax expense (benefit) (28) (20) - - 225 (234) Net income (loss) (96) (60) - - 758 (714) Cash flows from (used in) operating activities - (42) - - 1,897 (393) Capital and exploration expenditures (b) 15 24 - - 422 538 Total assets as at June 30 (note 11) 1,606 1,088 (431) (266) 38,939 39,500 (a) Included export sales to the United States of $3,113 million (2020 - $2,112 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. (b) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits. |
Investment and other income
Investment and other income | 6 Months Ended |
Jun. 30, 2021 | |
Investment and other income | 3. Investment and other income Investment and other income included gains and losses on asset sales as follows: Second Quarter Six Months millions of Canadian dollars 2021 2020 2021 2020 Proceeds from asset sales 35 40 42 49 Book value of asset sales 11 30 15 32 Gain (loss) on asset sales, before tax 24 10 27 17 Gain (loss) on asset sales, after tax 22 9 24 15 |
Employee retirement benefits
Employee retirement benefits | 6 Months Ended |
Jun. 30, 2021 | |
Employee retirement benefits | 4. Employee retirement benefits The components of net benefit cost were as follows: Second Quarter Six Months millions of Canadian dollars 2021 2020 2021 2020 Pension benefits: Current service cost 81 77 162 153 Interest cost 68 77 136 154 Expected return on plan assets (107 ) (98 ) (214 ) (196 ) Amortization of prior service cost 4 3 8 7 Amortization of actuarial loss (gain) 36 39 72 77 Net periodic benefit cost 82 98 164 195 Other postretirement benefits: Current service cost 7 6 14 12 Interest cost 5 6 11 12 Amortization of actuarial loss (gain) 4 3 8 6 Net periodic benefit cost 16 15 33 30 |
Financing Costs
Financing Costs | 6 Months Ended |
Jun. 30, 2021 | |
Financing Costs | 5. Financing costs Second Quarter Six Months millions of Canadian dollars 2021 2020 2021 2020 Debt-related interest 20 26 41 60 Capitalized interest (7 ) (9 ) (15 ) (24 ) Net interest expense 13 17 26 36 Other interest - - 1 - Total financing 13 17 27 36 In May 2021, the company extended the maturity date of two of its existing committed short-term lines of credit to May 2023 credit to June 2022 |
Long-term debt
Long-term debt | 6 Months Ended |
Jun. 30, 2021 | |
Long-term debt | 6. Long-term debt millions of Canadian dollars As at 2021 As at Long-term debt 4,447 4,447 Finance leases 618 510 Total long-term debt 5,065 4,957 |
Other long-term obligations
Other long-term obligations | 6 Months Ended |
Jun. 30, 2021 | |
Other long-term obligations | 7. Other long-term obligations millions of Canadian dollars As at 2021 As at Employee retirement benefits (a) 2,023 2,105 Asset retirement obligations and other environmental liabilities (b) 1,699 1,676 Share-based incentive compensation liabilities 84 45 Operating lease liability (c) 96 95 Other obligations 159 179 Total other long-term obligations 4,061 4,100 (a) Total recorded employee retirement benefits obligations also included $58 million in current liabilities (2020 - $58 million). (b) Total asset retirement obligations and other environmental liabilities also included $100 million in current liabilities (2020 - $100 million). (c) Total operating lease liability also included $82 million in current liabilities (2020 - $97 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $4 million (2020 - $27 million). |
Financial and derivative instru
Financial and derivative instruments | 6 Months Ended |
Jun. 30, 2021 | |
Financial and derivative instruments | 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 June 30, 2021 and December 31, 2020, the fair value of long-term debt ($4,447 million, 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 businesses 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 instruments to manage commodity price risk. 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: (thousands of barrels) As at 2021 As at Crude (710 ) (800 ) Products (160 ) (390 ) Realized and unrealized gain or (loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a before-tax Second Quarter Six Months millions of Canadian dollars 2021 2020 2021 2020 Revenues (9 ) (9 ) (9 ) (8 ) Purchases of crude oil and products (19 ) (52 ) (33 ) (18 ) Total (28 ) (61 ) (42 ) (26 ) The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement is as follows: millions of Canadian dollars At June 30, 2021 Fair value Effect of Effect of Net Level 1 Level 2 Level 3 Total Assets Derivative assets (a) 6 - - 6 (6 ) - - Liabilities Derivative liabilities (b) 8 - - 8 (6 ) (2 ) - (a) Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”. (b) Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”. millions of Canadian dollars At December 31, 2020 Fair value Effect of Effect of Net Level 1 Level 2 Level 3 Total Assets Derivative assets (a) 2 - - 2 (2 ) - - Liabilities Derivative liabilities (b) 12 - - 12 (2 ) (10 ) - (a) Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”. (b) Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”. At June 30, 2021 and December 31, 2020, respectively, the company had $8 million and $5 million 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. |
Common shares
Common shares | 6 Months Ended |
Jun. 30, 2021 | |
Common shares | 9. Common shares thousands of shares As of 2021 As of Authorized 1,100,000 1,100,000 Common shares outstanding 704,578 734,077 The 12-month The current 12-month The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of earnings reinvested. The company’s common share activities are summarized below: Thousands of Millions of Balance as at December 31, 2019 743,902 1,375 Issued under employee share-based awards 7 - Purchases at stated value (9,832 ) (18 ) Balance as at December 31, 2020 734,077 1,357 Issued under employee share-based awards - - Purchases at stated value (29,499 ) (55 ) Balance as at June 30, 2021 704,578 1,302 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: Second Quarter Six Months 2021 2020 2021 2020 Net income (loss) per common share - basic Net income (loss) (millions of Canadian dollars) 366 (526 ) 758 (714 ) Weighted average number of common shares outstanding (millions of shares) 724.1 734.1 729.1 736.5 Net income (loss) per common share (dollars) 0.51 (0.72 ) 1.04 (0.97 ) Net income (loss) per common share - diluted Net income (loss) (millions of Canadian dollars) 366 (526 ) 758 (714 ) Weighted average number of common shares outstanding (millions of shares) 724.1 734.1 729.1 736.5 Effect of employee share-based awards (millions of shares) (a) 1.7 - 1.7 - Weighted average number of common shares outstanding, assuming dilution (millions of shares) 725.8 734.1 730.8 736.5 Net income (loss) per common share (dollars) 0.50 (0.72 ) 1.04 (0.97 ) Dividends per common share - declared (dollars) 0.27 0.22 0.49 0.44 (a) For Second Quarter 2020 and Six Months to June 30, 2020, the Net income (loss) per common share – diluted excludes the effect of 2.0 million employee share-based awards. Share-based awards have the potential to dilute basic earnings per share in the future. |
Other comprehensive income (los
Other comprehensive income (loss) information | 6 Months Ended |
Jun. 30, 2021 | |
Other comprehensive income (loss) information | 10. Other comprehensive income (loss) information Changes in accumulated other comprehensive income (loss): millions of Canadian dollars 2021 2020 Balance at January 1 (1,989 ) (1,911 ) Postretirement benefits liability adjustment: Current period change excluding amounts reclassified from accumulated other comprehensive income 54 (114 ) Amounts reclassified from accumulated other comprehensive income 66 68 Balance at June 30 (1,869 ) (1,957 ) Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax Second Quarter Six Months millions of Canadian dollars 2021 2020 2021 2020 Amortization of postretirement benefits liability adjustment included in net periodic benefit cost (a) (44 ) (45 ) (88 ) (90 ) (a) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost, (note 4). Income tax expense (credit) for components of other comprehensive income (loss): Second Quarter Six Months millions of Canadian dollars 2021 2020 2021 2020 Postretirement benefits liability adjustments: Postretirement benefits liability adjustment (excluding amortization) - - 17 (37 ) Amortization of postretirement benefits liability adjustment included in net periodic benefit cost 11 11 22 22 Total 11 11 39 (15 ) |
Miscellaneous financial informa
Miscellaneous financial information | 6 Months Ended |
Jun. 30, 2021 | |
Miscellaneous financial information | 11. Miscellaneous financial information At March 31, 2021, due to the termination of transportation services agreements related to a third-party pipeline project, the company recognized a liability of $62 million, previously reported as a contingent liability in Note 10 of Imperial’s Form 10-K. 10-K In the first quarter of 2020, a non-cash non-cash In the first quarter of 2020, with the change in economic conditions and the reduction in the company’s market capitalization, the company assessed its goodwill balances for impairment and recognized a non-cash |
Business segments (Tables)
Business segments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Segments | Second Quarter Upstream Downstream Chemical millions of Canadian dollars 2021 2020 2021 2020 2021 2020 Revenues and other income Revenues (a) 2,616 908 5,015 2,587 376 171 Intersegment sales 1,312 262 788 124 79 27 Investment and other income (note 3) 6 10 28 27 1 1 3,934 1,180 5,831 2,738 456 199 Expenses Exploration 2 3 - - - - Purchases of crude oil and products (note 11) 2,044 512 4,760 1,896 240 119 Production and manufacturing 1,166 884 357 343 46 46 Selling and general - - 142 135 22 21 Federal excise tax and fuel charge - - 465 369 - - Depreciation and depletion (note 11) 399 363 39 40 5 4 Non-service - - - - - - Financing (note 5) - - - - - - Total expenses 3,611 1,762 5,763 2,783 313 190 Income (loss) before income taxes 323 (582) 68 (45) 143 9 Income taxes 76 (138) 8 (13) 34 2 Net income (loss) 247 (444) 60 (32) 109 7 Cash flows from (used in) operating activities 595 (968) 136 88 111 46 Capital and exploration expenditures (b) 130 145 120 51 2 2 Second Quarter Corporate and other Eliminations Consolidated millions of Canadian dollars 2021 2020 2021 2020 2021 2020 Revenues and other income Revenues (a) - - - - 8,007 3,666 Intersegment sales - - (2,179) (413) - - Investment and other income (note 3) 5 6 - - 40 44 5 6 (2,179) (413) 8,047 3,710 Expenses Exploration - - - - 2 3 Purchases of crude oil and products (note 11) - - (2,177) (412) 4,867 2,115 Production and manufacturing - - - - 1,569 1,273 Selling and general 38 28 (2) (1) 200 183 Federal excise tax and fuel charge - - - - 465 369 Depreciation and depletion (note 11) 7 6 - - 450 413 Non-service 10 30 - - 10 30 Financing (note 5) 13 17 - - 13 17 Total expenses 68 81 (2,179) (413) 7,576 4,403 Income (loss) before income taxes (63) (75) - - 471 (693) Income taxes (13) (18) - - 105 (167) Net income (loss) (50) (57) - - 366 (526) Cash flows from (used in) operating activities 10 1 - 17 852 (816) Capital and exploration expenditures (b) 7 9 - - 259 207 (a) Included export sales to the United States of $1,544 million (2020 - $739 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. (b) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits. Six Months to June 30 Upstream Downstream Chemical millions of Canadian dollars 2021 2020 2021 2020 2021 2020 Revenues and other income Revenues (a) 4,758 2,560 9,542 7,383 699 387 Intersegment sales 2,663 984 1,561 692 132 71 Investment and other income (note 3) 6 10 33 42 1 1 7,427 3,554 11,136 8,117 832 459 Expenses Exploration 4 4 - - - - Purchases of crude oil and products (note 11) 3,878 2,162 8,780 5,665 449 259 Production and manufacturing 2,275 1,992 683 751 96 109 Selling and general - - 275 316 47 46 Federal excise tax and fuel charge - - 869 820 - - Depreciation and depletion (note 11) 844 780 78 86 9 8 Non-service - - - - - - Financing (note 5) 1 - - - - - Total expenses 7,002 4,938 10,685 7,638 601 422 Income (loss) before income taxes 425 (1,384) 451 479 231 37 Income tax expense (benefit) 99 (332) 99 109 55 9 Net income (loss) 326 (1,052) 352 370 176 28 Cash flows from (used in) operating activities 1,126 (504) 598 110 173 43 Capital and exploration expenditures (b) 215 376 188 127 4 11 Total assets as at June 30 (note 11) 31,931 33,591 5,352 4,683 481 404 Six Months to June 30 Corporate and other Eliminations Consolidated millions of Canadian dollars 2021 2020 2021 2020 2021 2020 Revenues and other income Revenues (a) - - - - 14,999 10,330 Intersegment sales - - (4,356) (1,747) - - Investment and other income (note 3) 6 17 - - 46 70 6 17 (4,356) (1,747) 15,045 10,400 Expenses Exploration - - - - 4 4 Purchases of crude oil and products (note 11) - - (4,353) (1,745) 8,754 6,341 Production and manufacturing - - - - 3,054 2,852 Selling and general 70 (11) (3) (2) 389 349 Federal excise tax and fuel charge - - - - 869 820 Depreciation and depletion (note 11) 13 12 - - 944 886 Non-service 21 60 - - 21 60 Financing (note 5) 26 36 - - 27 36 Total expenses 130 97 (4,356) (1,747) 14,062 11,348 Income (loss) before income taxes (124) (80) - - 983 (948) Income tax expense (benefit) (28) (20) - - 225 (234) Net income (loss) (96) (60) - - 758 (714) Cash flows from (used in) operating activities - (42) - - 1,897 (393) Capital and exploration expenditures (b) 15 24 - - 422 538 Total assets as at June 30 (note 11) 1,606 1,088 (431) (266) 38,939 39,500 (a) Included export sales to the United States of $3,113 million (2020 - $2,112 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. (b) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits. |
Investment and other income (Ta
Investment and other income (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Gains and Losses on Asset Sales | Investment and other income included gains and losses on asset sales as follows: Second Quarter Six Months millions of Canadian dollars 2021 2020 2021 2020 Proceeds from asset sales 35 40 42 49 Book value of asset sales 11 30 15 32 Gain (loss) on asset sales, before tax 24 10 27 17 Gain (loss) on asset sales, after tax 22 9 24 15 |
Employee retirement benefits (T
Employee retirement benefits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Schedule of Net Benefit Costs | The components of net benefit cost were as follows: Second Quarter Six Months millions of Canadian dollars 2021 2020 2021 2020 Pension benefits: Current service cost 81 77 162 153 Interest cost 68 77 136 154 Expected return on plan assets (107 ) (98 ) (214 ) (196 ) Amortization of prior service cost 4 3 8 7 Amortization of actuarial loss (gain) 36 39 72 77 Net periodic benefit cost 82 98 164 195 Other postretirement benefits: Current service cost 7 6 14 12 Interest cost 5 6 11 12 Amortization of actuarial loss (gain) 4 3 8 6 Net periodic benefit cost 16 15 33 30 |
Financing Costs (Tables)
Financing Costs (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Financing costs | Second Quarter Six Months millions of Canadian dollars 2021 2020 2021 2020 Debt-related interest 20 26 41 60 Capitalized interest (7 ) (9 ) (15 ) (24 ) Net interest expense 13 17 26 36 Other interest - - 1 - Total financing 13 17 27 36 |
Long-term debt (Tables)
Long-term debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Long-Term Debt | millions of Canadian dollars As at 2021 As at Long-term debt 4,447 4,447 Finance leases 618 510 Total long-term debt 5,065 4,957 |
Other long-term obligations (Ta
Other long-term obligations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Long-Term Obligations | millions of Canadian dollars As at 2021 As at Employee retirement benefits (a) 2,023 2,105 Asset retirement obligations and other environmental liabilities (b) 1,699 1,676 Share-based incentive compensation liabilities 84 45 Operating lease liability (c) 96 95 Other obligations 159 179 Total other long-term obligations 4,061 4,100 (a) Total recorded employee retirement benefits obligations also included $58 million in current liabilities (2020 - $58 million). (b) Total asset retirement obligations and other environmental liabilities also included $100 million in current liabilities (2020 - $100 million). (c) Total operating lease liability also included $82 million in current liabilities (2020 - $97 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $4 million (2020 - $27 million). |
Financial and derivative inst_2
Financial and derivative instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Schedule of Net Long Short Position Of Derivative Instruments | The net notional long/(short) position of derivative instruments was: (thousands of barrels) As at 2021 As at Crude (710 ) (800 ) Products (160 ) (390 ) |
Summary of Realized and Unrealized Gain or (Loss) on Derivative Instruments | Realized and unrealized gain or (loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a before-tax Second Quarter Six Months millions of Canadian dollars 2021 2020 2021 2020 Revenues (9 ) (9 ) (9 ) (8 ) Purchases of crude oil and products (19 ) (52 ) (33 ) (18 ) Total (28 ) (61 ) (42 ) (26 ) |
Summary of estimated fair value of financial instruments | The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement is as follows: millions of Canadian dollars At June 30, 2021 Fair value Effect of Effect of Net Level 1 Level 2 Level 3 Total Assets Derivative assets (a) 6 - - 6 (6 ) - - Liabilities Derivative liabilities (b) 8 - - 8 (6 ) (2 ) - (a) Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”. (b) Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”. millions of Canadian dollars At December 31, 2020 Fair value Effect of Effect of Net Level 1 Level 2 Level 3 Total Assets Derivative assets (a) 2 - - 2 (2 ) - - Liabilities Derivative liabilities (b) 12 - - 12 (2 ) (10 ) - (a) Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”. (b) Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”. |
Common shares (Tables)
Common shares (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Common Shares | thousands of shares As of 2021 As of Authorized 1,100,000 1,100,000 Common shares outstanding 704,578 734,077 |
Common Share Activities | The company’s common share activities are summarized below: Thousands of Millions of Balance as at December 31, 2019 743,902 1,375 Issued under employee share-based awards 7 - Purchases at stated value (9,832 ) (18 ) Balance as at December 31, 2020 734,077 1,357 Issued under employee share-based awards - - Purchases at stated value (29,499 ) (55 ) Balance as at June 30, 2021 704,578 1,302 |
Calculation of Basic and Diluted Earnings Per Share | 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: Second Quarter Six Months 2021 2020 2021 2020 Net income (loss) per common share - basic Net income (loss) (millions of Canadian dollars) 366 (526 ) 758 (714 ) Weighted average number of common shares outstanding (millions of shares) 724.1 734.1 729.1 736.5 Net income (loss) per common share (dollars) 0.51 (0.72 ) 1.04 (0.97 ) Net income (loss) per common share - diluted Net income (loss) (millions of Canadian dollars) 366 (526 ) 758 (714 ) Weighted average number of common shares outstanding (millions of shares) 724.1 734.1 729.1 736.5 Effect of employee share-based awards (millions of shares) (a) 1.7 - 1.7 - Weighted average number of common shares outstanding, assuming dilution (millions of shares) 725.8 734.1 730.8 736.5 Net income (loss) per common share (dollars) 0.50 (0.72 ) 1.04 (0.97 ) Dividends per common share - declared (dollars) 0.27 0.22 0.49 0.44 (a) For Second Quarter 2020 and Six Months to June 30, 2020, the Net income (loss) per common share – diluted excludes the effect of 2.0 million employee share-based awards. Share-based awards have the potential to dilute basic earnings per share in the future. |
Other comprehensive income (l_2
Other comprehensive income (loss) information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss): millions of Canadian dollars 2021 2020 Balance at January 1 (1,989 ) (1,911 ) Postretirement benefits liability adjustment: Current period change excluding amounts reclassified from accumulated other comprehensive income 54 (114 ) Amounts reclassified from accumulated other comprehensive income 66 68 Balance at June 30 (1,869 ) (1,957 ) |
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) - Before-Tax Income (Expense) | Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax Second Quarter Six Months millions of Canadian dollars 2021 2020 2021 2020 Amortization of postretirement benefits liability adjustment included in net periodic benefit cost (a) (44 ) (45 ) (88 ) (90 ) (a) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost, (note 4). |
Income Tax Expense (Credit) for Components of Other Comprehensive Income (Loss) | Income tax expense (credit) for components of other comprehensive income (loss): Second Quarter Six Months millions of Canadian dollars 2021 2020 2021 2020 Postretirement benefits liability adjustments: Postretirement benefits liability adjustment (excluding amortization) - - 17 (37 ) Amortization of postretirement benefits liability adjustment included in net periodic benefit cost 11 11 22 22 Total 11 11 39 (15 ) |
Business Segments (Detail)
Business Segments (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||||||
Revenues and other income | ||||||||||
Revenues | [1] | $ 8,007 | [2] | $ 3,666 | [2] | $ 14,999 | [3] | $ 10,330 | [3] | |
Intersegment sales | ||||||||||
Investment and other income (note 3) | 40 | 44 | 46 | 70 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 8,047 | 3,710 | 15,045 | 10,400 | ||||||
Expenses | ||||||||||
Exploration | 2 | 3 | 4 | 4 | ||||||
Purchases of crude oil and products (note 11) | [4] | 4,867 | 2,115 | 8,754 | 6,341 | |||||
Production and manufacturing | [5] | 1,569 | 1,273 | 3,054 | 2,852 | |||||
Selling and general | [5] | 200 | 183 | 389 | 349 | |||||
Federal excise tax and fuel charge | 465 | 369 | 869 | 820 | ||||||
Depreciation and depletion (note 11) | 450 | 413 | 944 | 886 | ||||||
Non-service pension and postretirement benefit | 10 | 30 | 21 | 60 | ||||||
Financing (note 5) | [6] | 13 | 17 | 27 | 36 | |||||
Total expenses | 7,576 | 4,403 | 14,062 | 11,348 | ||||||
Income (loss) before income taxes | 471 | (693) | 983 | (948) | ||||||
Income tax expense (benefit) | 105 | (167) | 225 | (234) | ||||||
Net income (loss) | 366 | (526) | 758 | (714) | ||||||
Cash flows from (used in) operating activities | 852 | (816) | 1,897 | (393) | ||||||
Capital and exploration expenditures | [7] | 259 | 207 | 422 | 538 | |||||
Total assets as at June 30 (note 11) | 38,939 | 39,500 | 38,939 | 39,500 | $ 38,031 | |||||
Consolidation, Eliminations | ||||||||||
Revenues and other income | ||||||||||
Revenues | [2] | [2] | [3] | [3] | ||||||
Intersegment sales | (2,179) | (413) | (4,356) | (1,747) | ||||||
Investment and other income (note 3) | ||||||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | (2,179) | (413) | (4,356) | (1,747) | ||||||
Expenses | ||||||||||
Exploration | ||||||||||
Purchases of crude oil and products (note 11) | (2,177) | (412) | (4,353) | (1,745) | ||||||
Production and manufacturing | ||||||||||
Selling and general | (2) | (1) | (3) | (2) | ||||||
Federal excise tax and fuel charge | ||||||||||
Depreciation and depletion (note 11) | ||||||||||
Non-service pension and postretirement benefit | ||||||||||
Financing (note 5) | ||||||||||
Total expenses | (2,179) | (413) | (4,356) | (1,747) | ||||||
Income (loss) before income taxes | ||||||||||
Income tax expense (benefit) | 0 | 0 | ||||||||
Net income (loss) | ||||||||||
Cash flows from (used in) operating activities | 17 | |||||||||
Capital and exploration expenditures | [7] | |||||||||
Total assets as at June 30 (note 11) | (431) | (266) | (431) | (266) | ||||||
Upstream | ||||||||||
Revenues and other income | ||||||||||
Revenues | 2,616 | [2] | 908 | [2] | 4,758 | [3] | 2,560 | [3] | ||
Intersegment sales | 1,312 | 262 | 2,663 | 984 | ||||||
Investment and other income (note 3) | 6 | 10 | 6 | 10 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 3,934 | 1,180 | 7,427 | 3,554 | ||||||
Expenses | ||||||||||
Exploration | 2 | 3 | 4 | 4 | ||||||
Purchases of crude oil and products (note 11) | 2,044 | 512 | 3,878 | 2,162 | ||||||
Production and manufacturing | 1,166 | 884 | 2,275 | 1,992 | ||||||
Selling and general | ||||||||||
Federal excise tax and fuel charge | ||||||||||
Depreciation and depletion (note 11) | 399 | 363 | 844 | 780 | ||||||
Non-service pension and postretirement benefit | ||||||||||
Financing (note 5) | 1 | |||||||||
Total expenses | 3,611 | 1,762 | 7,002 | 4,938 | ||||||
Income (loss) before income taxes | 323 | (582) | 425 | (1,384) | ||||||
Income tax expense (benefit) | 76 | (138) | 99 | (332) | ||||||
Net income (loss) | 247 | (444) | 326 | (1,052) | ||||||
Cash flows from (used in) operating activities | 595 | (968) | 1,126 | (504) | ||||||
Capital and exploration expenditures | [7] | 130 | 145 | 215 | 376 | |||||
Total assets as at June 30 (note 11) | 31,931 | 33,591 | 31,931 | 33,591 | ||||||
Downstream | ||||||||||
Revenues and other income | ||||||||||
Revenues | 5,015 | [2] | 2,587 | [2] | 9,542 | [3] | 7,383 | [3] | ||
Intersegment sales | 788 | 124 | 1,561 | 692 | ||||||
Investment and other income (note 3) | 28 | 27 | 33 | 42 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 5,831 | 2,738 | 11,136 | 8,117 | ||||||
Expenses | ||||||||||
Exploration | ||||||||||
Purchases of crude oil and products (note 11) | 4,760 | 1,896 | 8,780 | 5,665 | ||||||
Production and manufacturing | 357 | 343 | 683 | 751 | ||||||
Selling and general | 142 | 135 | 275 | 316 | ||||||
Federal excise tax and fuel charge | 465 | 369 | 869 | 820 | ||||||
Depreciation and depletion (note 11) | 39 | 40 | 78 | 86 | ||||||
Non-service pension and postretirement benefit | ||||||||||
Financing (note 5) | ||||||||||
Total expenses | 5,763 | 2,783 | 10,685 | 7,638 | ||||||
Income (loss) before income taxes | 68 | (45) | 451 | 479 | ||||||
Income tax expense (benefit) | 8 | (13) | 99 | 109 | ||||||
Net income (loss) | 60 | (32) | 352 | 370 | ||||||
Cash flows from (used in) operating activities | 136 | 88 | 598 | 110 | ||||||
Capital and exploration expenditures | [7] | 120 | 51 | 188 | 127 | |||||
Total assets as at June 30 (note 11) | 5,352 | 4,683 | 5,352 | 4,683 | ||||||
Chemical | ||||||||||
Revenues and other income | ||||||||||
Revenues | 376 | [2] | 171 | [2] | 699 | [3] | 387 | [3] | ||
Intersegment sales | 79 | 27 | 132 | 71 | ||||||
Investment and other income (note 3) | 1 | 1 | 1 | 1 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 456 | 199 | 832 | 459 | ||||||
Expenses | ||||||||||
Exploration | ||||||||||
Purchases of crude oil and products (note 11) | 240 | 119 | 449 | 259 | ||||||
Production and manufacturing | 46 | 46 | 96 | 109 | ||||||
Selling and general | 22 | 21 | 47 | 46 | ||||||
Federal excise tax and fuel charge | ||||||||||
Depreciation and depletion (note 11) | 5 | 4 | 9 | 8 | ||||||
Non-service pension and postretirement benefit | ||||||||||
Financing (note 5) | ||||||||||
Total expenses | 313 | 190 | 601 | 422 | ||||||
Income (loss) before income taxes | 143 | 9 | 231 | 37 | ||||||
Income tax expense (benefit) | 34 | 2 | 55 | 9 | ||||||
Net income (loss) | 109 | 7 | 176 | 28 | ||||||
Cash flows from (used in) operating activities | 111 | 46 | 173 | 43 | ||||||
Capital and exploration expenditures | [7] | 2 | 2 | 4 | 11 | |||||
Total assets as at June 30 (note 11) | 481 | 404 | 481 | 404 | ||||||
Corporate and Other | ||||||||||
Revenues and other income | ||||||||||
Revenues | [2] | [2] | [3] | [3] | ||||||
Intersegment sales | ||||||||||
Investment and other income (note 3) | 5 | 6 | 6 | 17 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 5 | 6 | 6 | 17 | ||||||
Expenses | ||||||||||
Exploration | ||||||||||
Purchases of crude oil and products (note 11) | ||||||||||
Production and manufacturing | ||||||||||
Selling and general | 38 | 28 | 70 | (11) | ||||||
Federal excise tax and fuel charge | ||||||||||
Depreciation and depletion (note 11) | 7 | 6 | 13 | 12 | ||||||
Non-service pension and postretirement benefit | 10 | 30 | 21 | 60 | ||||||
Financing (note 5) | 13 | 17 | 26 | 36 | ||||||
Total expenses | 68 | 81 | 130 | 97 | ||||||
Income (loss) before income taxes | (63) | (75) | (124) | (80) | ||||||
Income tax expense (benefit) | (13) | (18) | (28) | (20) | ||||||
Net income (loss) | (50) | (57) | (96) | (60) | ||||||
Cash flows from (used in) operating activities | 10 | 1 | (42) | |||||||
Capital and exploration expenditures | [7] | 7 | 9 | 15 | 24 | |||||
Total assets as at June 30 (note 11) | $ 1,606 | $ 1,088 | $ 1,606 | $ 1,088 | ||||||
[1] | Amounts from related parties included in revenues. 1,405 747 2,913 2,483 | |||||||||
[2] | Included export sales to the United States of $1,544 million (2020 - $739 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. | |||||||||
[3] | Included export sales to the United States of $3,113 million (2020 - $2,112 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. | |||||||||
[4] | Amounts to related parties included in purchases of crude oil and products. 666 396 1,181 1,135 | |||||||||
[5] | Amounts to related parties included in production and manufacturing, and selling and general expenses. 106 138 222 321 | |||||||||
[6] | Amounts to related parties included in financing, (note 5). 10 14 21 38 | |||||||||
[7] | Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits. |
Business Segments (Parenthetica
Business Segments (Parenthetical) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
United States Exports | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 1,544 | $ 739 | $ 3,113 | $ 2,112 |
Gains and Losses on Asset Sales
Gains and Losses on Asset Sales (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investment And Other Income [Line Items] | ||||
Proceeds from asset sales | $ 35 | $ 40 | $ 42 | $ 49 |
Book value of asset sales | 11 | 30 | 15 | 32 |
Gain (loss) on asset sales, before tax | 24 | 10 | 27 | 17 |
Gain (loss) on asset sales, after tax | $ 22 | $ 9 | $ 24 | $ 15 |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Pension benefits | ||||
Current service cost | $ 81 | $ 77 | $ 162 | $ 153 |
Interest cost | 68 | 77 | 136 | 154 |
Expected return on plan assets | (107) | (98) | (214) | (196) |
Amortization of prior service cost | 4 | 3 | 8 | 7 |
Amortization of actuarial loss (gain) | 36 | 39 | 72 | 77 |
Net periodic benefit cost | 82 | 98 | 164 | 195 |
Other postretirement benefits | ||||
Current service cost | 7 | 6 | 14 | 12 |
Interest cost | 5 | 6 | 11 | 12 |
Amortization of actuarial loss (gain) | 4 | 3 | 8 | 6 |
Net periodic benefit cost | $ 16 | $ 15 | $ 33 | $ 30 |
Financing Costs (Detail)
Financing Costs (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Debt-related interest | $ 20 | $ 26 | $ 41 | $ 60 | |
Capitalized interest | (7) | (9) | (15) | (24) | |
Net interest expense | 13 | 17 | 26 | 36 | |
Other interest | 0 | 0 | 1 | 0 | |
Total financing | [1] | $ 13 | $ 17 | $ 27 | $ 36 |
[1] | Amounts to related parties included in financing, (note 5). 10 14 21 38 |
Financing Costs - Additional In
Financing Costs - Additional Information (Detail) - CAD ($) $ in Millions | 1 Months Ended | |
Jun. 30, 2021 | May 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Interest bearing loan, maximum borrowing capacity | $ 1,300 | |
Line Of Credit Facility Due May Two Thousand And Twenty Three [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, maturity date | May 31, 2023 | |
Interest bearing loan, maximum borrowing capacity | $ 750 | |
Short Term Line Of Credit Facility Due June Two Thousand And Twenty Two [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, maturity date | Jun. 30, 2022 | |
Interest bearing loan, maximum borrowing capacity | $ 300 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - CAD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 4,447 | $ 4,447 | |
Finance leases | 618 | 510 | |
Total long-term debt | [1] | $ 5,065 | $ 4,957 |
[1] | Long-term debt included amounts to related parties of $4,447 million (2020 - $4,447 million). |
Other Long-Term Obligations (De
Other Long-Term Obligations (Detail) - CAD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Schedule of Other Liabilities [Line Items] | |||
Employee retirement benefits | [1] | $ 2,023 | $ 2,105 |
Asset retirement obligations and other environmental liabilities | [2] | 1,699 | 1,676 |
Share-based incentive compensation liabilities | 84 | 45 | |
Operating lease liability | [3] | 96 | 95 |
Other obligations | 159 | 179 | |
Total other long-term obligations | $ 4,061 | $ 4,100 | |
[1] | Total recorded employee retirement benefits obligations also included $58 million in current liabilities (2020 - $58 million). | ||
[2] | Total asset retirement obligations and other environmental liabilities also included $100 million in current liabilities (2020 - $100 million). | ||
[3] | Total operating lease liability also included $82 million in current liabilities (2020 - $97 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $4 million (2020 - $27 million). |
Other Long-Term Obligations (Pa
Other Long-Term Obligations (Parenthetical) (Detail) - CAD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Schedule of Other Liabilities [Line Items] | ||
Employee retirement benefit obligations in current liabilities | $ 58 | $ 58 |
Asset retirement obligations and other environmental liabilities in current liabilities | 100 | 100 |
Undiscounted Commitments | 4 | 27 |
Accounts Payable and Accrued Liabilities [Member] | ||
Schedule of Other Liabilities [Line Items] | ||
Lease liability due within one year, Operating leases | $ 82 | $ 97 |
Financial and derivative inst_3
Financial and derivative instruments - Summary of net notional long/(short) position of derivative instruments (Detail) - bbl bbl in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Crude barrels [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | (710) | (800) |
Products barrels [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Volume | (160) | (390) |
Summary of Realized and Unreali
Summary of Realized and Unrealized Gain or (Loss) on Derivative Instruments (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Financial Instruments And Derivatives [Line Items] | ||||
Revenues | $ (9) | $ (9) | $ (9) | $ (8) |
Purchases of crude oil and products | (19) | (52) | (33) | (18) |
Total | $ (28) | $ (61) | $ (42) | $ (26) |
Financial and derivative inst_4
Financial and derivative instruments - Summary of estimated fair value of financial instruments (Detail) - CAD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative Asset [Abstract] | |||
Derivative Asset | [1] | $ 6 | $ 2 |
Derivative Liability [Abstract] | |||
Derivative liabilities | [2] | 8 | 12 |
Effect of counterparty netting [Member] | |||
Derivative Asset [Abstract] | |||
Derivative Asset | [1] | (6) | (2) |
Derivative Liability [Abstract] | |||
Derivative liabilities | [2] | (6) | (2) |
Derivative fair value of derivative amount effect of collateral netting [Member] | |||
Derivative Asset [Abstract] | |||
Derivative Asset | [1] | ||
Derivative Liability [Abstract] | |||
Derivative liabilities | [2] | (2) | (10) |
Fair Value, Inputs, Level 1 [Member] | |||
Derivative Asset [Abstract] | |||
Derivative Asset | [1] | 6 | 2 |
Derivative Liability [Abstract] | |||
Derivative liabilities | [2] | 8 | 12 |
Fair Value, Inputs, Level 2 [Member] | |||
Derivative Asset [Abstract] | |||
Derivative Asset | [1] | ||
Derivative Liability [Abstract] | |||
Derivative liabilities | [2] | ||
Fair Value, Inputs, Level 3 [Member] | |||
Derivative Asset [Abstract] | |||
Derivative Asset | [1] | ||
Derivative Liability [Abstract] | |||
Derivative liabilities | [2] | ||
[1] | Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”. | ||
[2] | Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”. |
Financial and derivative inst_5
Financial and derivative instruments - Additional Information (Detail) - CAD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Financial Instruments And Derivatives [Line Items] | ||
Long-term Debt, Fair Value | $ 4,447 | $ 4,447 |
Master netting arrangements [Member] | ||
Financial Instruments And Derivatives [Line Items] | ||
Derivative collateral receivable | $ 8 | $ 5 |
Common Shares - Additional Info
Common Shares - Additional Information (Detail) - shares | Jun. 29, 2021 | Jun. 15, 2021 | Jun. 29, 2020 | Jun. 15, 2020 | Apr. 30, 2021 |
Class of Stock [Line Items] | |||||
Normal course issuer bid share repurchase shares authorized | 29,363,070 | ||||
Exxon Mobil Corporation's ownership interest in Imperial | 69.60% | ||||
Normal course issuer bid share repurchase term, months | 12 months | ||||
Percent of total shares | 4.00% | ||||
Share Repurchase Program Dated June Twenty First Two Thousand Twenty One [Member] | |||||
Class of Stock [Line Items] | |||||
Normal course issuer bid share repurchase shares authorized | 35,583,671 | ||||
Exxon Mobil Corporation's ownership interest in Imperial | 69.60% | ||||
Normal course issuer bid share repurchase term, months | 12 months | ||||
Percent of total shares | 5.00% |
Summary of Common Shares (Detai
Summary of Common Shares (Detail) - shares | Jun. 30, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||
Authorized | 1,100,000,000 | 1,100,000,000 |
Common shares outstanding | 704,578,000 | 734,077,000 |
Common Share Activities (Detail
Common Share Activities (Detail) - CAD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||
Class of Stock [Line Items] | ||||||
Common stock beginning balance, shares | 734,077 | |||||
Common stock, ending balance, shares | 704,578 | 704,578 | 734,077 | |||
Common stock beginning balance, value | [1] | $ 1,357 | ||||
Common stock, ending balance, value | [1] | $ 1,302 | $ 1,302 | $ 1,357 | ||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock beginning balance, shares | 734,077 | 743,902 | 743,902 | |||
Issued under employee share-based awards, shares | 7 | |||||
Purchases at stated value, shares | (29,499) | (9,832) | ||||
Common stock, ending balance, shares | 704,578 | 704,578 | 734,077 | |||
Common stock beginning balance, value | $ 1,357 | $ 1,375 | $ 1,375 | |||
Issued under employee share-based awards, value | ||||||
Purchases at stated value, value | $ (55) | (55) | $ (18) | (18) | ||
Common stock, ending balance, value | $ 1,302 | $ 1,302 | $ 1,357 | |||
[1] | Number of common shares authorized and outstanding were 1,100 million and 705 million, respectively (2020 - 1,100 million and 734 million, respectively). |
Calculation of basic and dilute
Calculation of basic and diluted earnings per common share and the dividend declared by the company on its outstanding common shares (Detail) - CAD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Net income (loss) per common share - basic | |||||
Net income (loss) (millions of Canadian dollars) | $ 366 | $ (526) | $ 758 | $ (714) | |
Weighted average number of common shares outstanding (millions of shares) | 724.1 | 734.1 | 729.1 | 736.5 | |
Net income (loss) per common share (dollars) | $ 0.51 | $ (0.72) | $ 1.04 | $ (0.97) | |
Net income (loss) per common share - diluted | |||||
Net income (loss) (millions of Canadian dollars) | $ 366 | $ (526) | $ 758 | $ (714) | |
Weighted average number of common shares outstanding (millions of shares) | 724.1 | 734.1 | 729.1 | 736.5 | |
Effect of employee share-based awards (millions of shares) | [1] | 1.7 | 1.7 | ||
Weighted average number of common shares outstanding, assuming dilution (millions of shares) | 725.8 | 734.1 | 730.8 | 736.5 | |
Net income (loss) per common share (dollars) | $ 0.50 | $ (0.72) | $ 1.04 | $ (0.97) | |
Dividends per common share - declared (dollars) | $ 0.27 | $ 0.22 | $ 0.49 | $ 0.44 | |
[1] | For Second Quarter 2020 and Six Months to June 30, 2020, the Net income (loss) per common share – diluted excludes the effect of 2.0 million employee share-based awards. Share-based awards have the potential to dilute basic earnings per share in the future. |
Calculation of basic and dilu_2
Calculation of basic and diluted earnings per common share and the dividend declared by the company on its outstanding common shares (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Effect of employee share-based awards excluded from computation | 2 | 2 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at January 1 | $ (1,989) | $ (1,911) | ||
Current period change excluding amounts reclassified from accumulated other comprehensive income | 54 | (114) | ||
Amounts reclassified from accumulated other comprehensive income | 33 | 34 | 66 | 68 |
Balance at June 30 | $ (1,869) | $ (1,957) | $ (1,869) | $ (1,957) |
Amounts Reclassified Out of Acc
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost | $ (44) | $ (45) | $ (88) | $ (90) |
Income Tax Expense (Credit) for
Income Tax Expense (Credit) for Components of Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Postretirement benefits liability adjustment (excluding amortization) | $ 17 | $ (37) | ||
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost | 11 | 11 | 22 | 22 |
Total | $ 11 | $ 11 | $ 39 | $ (15) |
Miscellaneous Financial Infor_2
Miscellaneous Financial Information - Additional Information (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Additional Financial Information [Line Items] | |||||||
Decrease in Long Term Purchase Commitment Amount | $ 2,900 | ||||||
Inventory write-down to current market value | $ (281) | $ 281 | |||||
Liabilities | $ 18,170 | $ 18,170 | $ 16,613 | ||||
Upstream [Member] | |||||||
Additional Financial Information [Line Items] | |||||||
Non-cash impairment of goodwill | 20 | ||||||
Inventory write-down to current market value | 229 | ||||||
Downstream [Member] | |||||||
Additional Financial Information [Line Items] | |||||||
Inventory write-down to current market value | $ 52 | ||||||
Accounts payable and accrued liabilities | |||||||
Additional Financial Information [Line Items] | |||||||
Liabilities | $ 62 |