Imperial Oil production highest in 30 years

Net income down in the third quarter but company returned $512 million to shareholders through share purchases and dividends

Mario Toneguzzi is a Troy Media reporter based in CalgaryCalgary-based Imperial Oil announced on Friday that it had net income of $424 million in its third quarter, down from $749 million a year ago.

But the company also experienced its highest third quarter production in 30 years at 407,000 gross oil-equivalent barrels per day.

The company also returned $512 million to shareholders through share purchases and dividends.

Cash generated from operating activities for the third quarter totalled nearly $1.4 billion, up from $1.2 billion generated in the third quarter of 2018.

Overall upstream gross oil-equivalent production averaged 407,000 barrels per day, up from 393,000 barrels per day in the third quarter of 2018. Gross production at Kearl averaged 224,000 barrels per day in the third quarter, with production for the first nine months of the year averaging 204,000 barrels per day, said the company in a news release.

Rich Kruger
Rich Kruger

“Imperial achieved its highest third quarter production in 30 years,” said Rich Kruger, chairman and chief executive officer. “This performance demonstrates the results of the company’s focus on upstream reliability.”

The company said refinery throughput averaged 363,000 barrels per day, compared to 388,000 barrels per day in the third quarter of 2018. Petroleum product sales averaged 488,000 barrels per day in the third quarter, compared to 516,000 barrels per day in the same period of 2018. Downstream volumes were affected by the planned Nanticoke refinery turnaround and ongoing impacts from the fractionation tower incident at Sarnia earlier in the year.

“Imperial continued to deliver strong cash flow in the third quarter, despite executing significant maintenance activities. Year-to-date cash generated from operations totalled $3.4 billion, supporting the company’s ability to fund its investment priorities and also return surplus cash to shareholders. During the first nine months of 2019, over $1.5 billion was returned to shareholders through dividends and share purchases,” said Kruger.

Capital and exploration expenditures totalled $442 million compared with $376 million in the third quarter of 2018. Total capital expenditures for the year continue to be anticipated at between $1.8 billion and $1.9 billion, said Imperial.

© Calgary’s Business


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