Imperial Oil Ltd (IMO, Financial) released its Q3 2023 financial results on October 27, 2023. The company reported a net income of $1,601 million, up from $675 million in Q2 2023. This increase was driven by strong operating performance and higher commodity prices. The company's cash flow from operating activities was $2,359 million, up from $885 million in Q2 2023.
Financial Highlights
IMO's upstream production in the third quarter averaged 423,000 gross oil-equivalent barrels per day. At Kearl, the company's total gross production averaged 295,000 barrels per day, marking the highest quarterly production in the asset’s history. The company also set a new single month production record in September with 322,000 barrels per day.
In the Downstream, throughput in the quarter averaged 416,000 barrels per day with refinery capacity utilization of 96 percent. Petroleum product sales in the quarter were 478,000 barrels per day, capturing value from strong fuel margins.
Shareholder Returns and Future Plans
During the quarter, IMO returned $292 million in dividends and $1,342 million through accelerated share repurchases under the company’s normal course issuer bid (NCIB) program. The company completed its NCIB program in October, returning more than $2.3 billion in total to shareholders. Furthermore, the company announced its intention to initiate a substantial issuer bid to return up to a further $1.5 billion to shareholders in the fourth quarter of 2023.
Commitment to Lowering Emissions
Throughout the quarter, IMO continued to advance key projects that support lowering greenhouse gas emissions. This includes the startup of the final Kearl boiler flue gas unit, ongoing construction of Strathcona renewable diesel facility, and successful completion of a co-processing trial at Strathcona refinery. In September, the company released its annual Advancing Climate Solutions report outlining its progress and ongoing commitment to lowering greenhouse gas emissions intensity.
Outlook
As IMO looks to close out 2023, the company remains focused on maximizing the value of its existing assets, progressing select growth opportunities, continuing to reduce its carbon intensity, and returning surplus cash to shareholders.
Explore the complete 8-K earnings release (here) from Imperial Oil Ltd for further details.
