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Friday, Oct. 28, 2016  

Imperial earns $1 billion in third quarter of 2016

  • Sale of company-owned retail sites is progressing as planned; gain of $716 million in the third quarter
  • Upstream unit cash costs down 35 percent versus 2014, averaging less than US$20 per barrel
  • Record high petroleum product sales of 505,000 barrels per day

  Third quarter Nine months
(millions of dollars, unless noted) 2016 2015 % 2016 2015 %
Net income (loss) (U.S. GAAP) 1,003 479 109 721 1,020 (29)
Net income (loss) per common share
- assuming dilution (dollars)
1.18 0.56 109 0.85 1.20 (29)
Capital and exploration expenditures 205 1,142 (82) 948 3,011 (69)

Calgary, October 28, 2016 - Imperial’s third quarter results reflect the company’s disciplined approach to cost management, operational integrity and capturing the value of its integrated business model.

Earnings in the quarter were $1,003 million, or $1.18 per-share, including a gain of $716 million ($0.84 per-share) from the sale of retail sites. This compares to earnings of $479 million in the third quarter of 2015. The sale of the company-owned Esso retail sites for $2.8 billion, announced in the first quarter, is expected to be complete by year end. Currently, more than 200 sites involved in the sale have converted to the Esso branded distributor operating model, representing more than 40 percent of the total transaction value.

Imperial continues to focus its efforts on reducing costs and prudently managing cash in a low commodity price environment. “Upstream unit cash costs are averaging less than US$20 per barrel year to date,” said Rich Kruger, chairman, president and chief executive officer. “That’s a decline of more than 35 percent since 2014 when global crude prices began their descent. It’s a testament to our team’s unrelenting focus on operational excellence and profitability.” Third quarter capital and exploration expenditures were $205 million, down $937 million from 2015, reflecting the completion of major upstream growth projects and an ongoing focus on capital selectivity.   

Gross oil-equivalent production was 393,000 barrels per day, up 7,000 barrels per day compared to the same period in 2015 and up by 64,000 barrels per day compared to the second quarter. Syncrude production averaged 85,000 barrels per day (Imperial’s share), up 26,000 barrels per day from the same quarter of 2015. “The increase in production illustrates the company’s strong recovery from the effects of the northern Alberta wildfires,” Kruger said. “Syncrude achieved the second highest quarterly production in its nearly 40-year history, reflecting ongoing efforts to improve the reliability of operations.”

Refinery throughput was 407,000 barrels per day, an increase of 17,000 barrels per day compared to the same quarter of 2015. Refinery capacity utilization approached a record high at 97 percent, an increase of 4 percent from the comparable period in 2015. The company achieved record high petroleum product sales of 505,000 barrels per day, compared to 495,000 barrels per day in the same period of 2015.

The company continues to evaluate the pace and scope of future investments in light of overall market and business conditions. Our objective remains to deliver industry leading performance in all business environments. 

After more than a century, Imperial continues to be an industry leader in applying technology and innovation to responsibly develop Canada’s energy resources. As Canada’s largest petroleum refiner, a major producer of crude oil and natural gas, a key petrochemical producer and a leading fuels marketer from coast to coast, our company remains committed to high standards across all areas of our business.

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