Imperial’s second quarter results reflect its consistent focus on base business fundamentals as well as profitable and responsible growth. Highlights include strong operational results across Downstream and Chemical and the safe, successful completion of a major turnaround at the Upstream’s Cold Lake Mahihkan facility. In addition, progress continued as planned on the company’s upstream growth projects, Kearl and Nabiye.
Earnings in the second quarter were $1,232 million, or $1.45 per share, and included a $478 million gain associated with the sale of interests in several conventional upstream producing assets.
Gross production averaged 287,000 oil-equivalent barrels per day, up 11,000 barrels versus 2013, due to increased Kearl production, largely offset by planned and unplanned maintenance at Syncrude, major turnaround activities at Cold Lake and the impact of divested conventional assets. Kearl production averaged 73,000 barrels per day (52,000 barrels Imperial’s share) in the quarter, as a significant ramp-up in production in June was offset by planned maintenance and reliability improvement repairs earlier in the quarter.
Refinery throughput totalled 418,000 barrels per day, up 54,000 barrels versus 2013, adjusted for the Dartmouth refinery shutdown. A strong focus on reliability resulted in record refinery capacity utilization of 99 percent. Petroleum product sales of 481,000 barrels per day were up five percent versus the same period last year.
Second quarter capital and exploration expenditures totalled $1,398 million. Investments were primarily associated with upstream growth; most notably the Kearl expansion and Cold Lake Nabiye projects, which were 90 and 89 percent complete, respectively, at the end of the quarter. Expenditures were fully funded from cash flow from operations and proceeds from the divestment of conventional upstream asset.
A major milestone was reached in the quarter when employees moved into the first of five buildings at Imperial’s new Calgary offices in Quarry Park. The campus-style complex, scheduled for full occupancy in early 2016, will facilitate enhanced collaboration and innovation to support the company’s long-term, profitable growth.
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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 the highest standards across all areas of our business.