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Quarterly highlights

Financial

  • Net loss of $77 million or $0.09 per-share on a diluted basis, compared to the net loss of $181 million or $0.21 per-share in the second quarter of 2016.
  • Production averaged 331,000 gross oil-equivalent barrels per day, up from 329,000 barrels per day in the same period of 2016. Production at Kearl and Syncrude increased relative to the prior year’s second quarter which was impacted by the Alberta wildfires. These increases were offset by the absence of production at the 11,000 barrels per day Norman Wells operation due to the continued shutdown of Enbridge’s Line 21 export pipeline. Following National Energy Board regulatory reviews, anticipated approvals and pipeline upgrades, production is anticipated to resume in the second half of 2018.
  • Refinery throughput averaged 358,000 barrels per day, up from 246,000 barrels in the second quarter of 2016, primarily due to reduced turnaround activity. Refinery capacity utilization was 85 percent, reflecting the impact of a planned 71 day turnaround at the Sarnia facility completed in early July.
  • Petroleum product sales were 486,000 barrels per day, up from 470,000 barrels per day in the second quarter of 2016. Sales growth continues to be driven by strong collaboration across our downstream value chain and the expansion of Imperial’s retail, wholesale, industrial and commercial networks.
  • Cash generated from operating activities was $492 million, an increase of $49 million from the second quarter of 2016.
  • Capital and exploration expenditures totalled $143 million, a decrease of $192 million from the second quarter of 2016. Full-year expenditures are expected to be about $800 million, as the company maintains its focus on capital discipline and capturing market and productivity benefits in the current business environment.
  • Dividends and share purchases totalled $254 million, including the purchase of approximately 3.3 million shares at a cost of $127 million.

Operations

Upstream production

Kearl comprehensive plan underway to improve reliability and achieve targeted production levels. The plan, expected to proceed throughout 2017 and 2018, includes actions to deliver improvements, primarily associated with mining and ore preparation operations, to sustain targeted production rates throughout the life of the asset. In the second quarter, improvement activities were executed during scheduled maintenance and included a range of mechanical enhancements. Gross production of Kearl bitumen averaged 171,000 barrels per day in the quarter (121,000 barrels Imperial’s share). Production was impacted by about 38,000 barrels per day (27,000 barrels Imperial’s share) associated with the planned maintenance activities.

Increased ability to deliver value to shareholders through an expanded share buyback program. The program enables Imperial to purchase up to three percent of its common shares outstanding, approximately 25 million shares, during the 12 months ending June 26, 2018. It supports the company’s approach to capital allocation, which focuses on maintaining a strong balance sheet, paying a reliable and growing dividend and investing in attractive growth opportunities. Further increasing Imperial’s ability to deliver value through an expanded share buyback program allows the company to flexibly return surplus cash to shareholders.

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