Imperial Oil Posts Sharp Decline In Q2 Earnings, Renews Share Buyback Program

Imperial Oil Ltd IMO reported Q2 2023 EPS of C$1.15, lower than C$3.63 a year ago.

Net income declined to C$675 million from C$2.41 billion a year ago on lower commodity prices and increased planned turnaround activity. 

Total revenue and other income stood at C$11.8 billion vs. C$17.3 billion a year ago.

Upstream production averaged 363,000 gross oil-equivalent barrels per day compared to 413,000 gross oil-equivalent barrels per day a year ago.

The timing of planned turnaround activity at Syncrude, production and steam cycle timing at Cold Lake, and the absence of unconventional volumes (witnessed in Q3 2022) impacted the upstream production.

Downstream throughput averaged 388,000 barrels per day, with refinery capacity utilization of 90%, on the planned turnaround at the Strathcona refinery.

Average bitumen realized prices fell to C$68.64 per barrel from C$112.27 a year ago, and synthetic crude oil sales price declined to C$100.92 from C$144.67 the prior year.

Operating cash flow stood at C$885 million (vs. C$2.68 billion a year ago).

Capital and exploration expenditures rose to C$493 million from C$314 million a year ago.

The company paid C$257 million in dividends to shareholders in Q2.

Repurchase: IMP renewed its share repurchase program, enabling the purchase of up to 5% of outstanding shares during the 12 months ending June 28, 2024.

Price Action: IMO shares are trading higher by 5.04% at $54.15 on the last check Friday.