Imperial Oil Ltd. has reported CAD 1.1 billion ($795.9 million), or CAD 2.11 ($1.5) per diluted frequent share, in web revenue for the second quarter, up almost 68 p.c in comparison with the identical three-month interval in 2023 on stronger manufacturing and costs.
Nevertheless, that was a fall from the primary quarter of 2024’s web earnings of CAD 1.2 billion ($868.2 million) as a result of turnaround actions and decrease refining margins.
The Canadian producer of petroleum, pure gasoline, bitumen and artificial oil recorded 404,000 gross oil equal barrels per day in whole upstream output, its greatest second quarter efficiency in over 30 years when adjusted for the divestment of XTO Vitality Canada ULC. Imperial had given up a web manufacturing of 140 million cubic toes a day of gasoline and 9,000 barrels per day (bpd) of petroleum, condensate and pure gasoline liquids when the corporate together with associate Exxon Mobil Corp. offered XTO Vitality in 2022 to Whitecap Assets Inc. for CAD 1.9 billion ($1.4 billion) in money.
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“With nearly all of upstream turnaround exercise behind us, we’re effectively positioned for sturdy manufacturing within the second half of the yr”, chair, president and chief government Brad Corson mentioned within the firm report.
Wildfires in Fort McMurray, Alberta, close to Imperial’s Chilly Lake and Kearl oil sands operations didn’t influence manufacturing. Nevertheless, the breakout of wildfires is “a scenario that we’ll proceed to carefully monitor and take acceptable actions”, Corson advised the corporate’s earnings name.
Imperial was additionally boosted by greater West Texas Intermediate (WTI) and Western Canada Choose (WCS) costs at CAD 80.63 ($58.3) and CAD 67.03 ($48.5) respectively. “Common bitumen realizations elevated by $14.38 [10.4 in United States dollars] per barrel, primarily pushed by greater marker costs and the narrowing of the WTI/WCS unfold”, it mentioned in its quarterly report. “Artificial crude oil realizations elevated by $10.64 [7.7 in U.S. dollars] per barrel, usually in keeping with WTI”.
Downstream, throughput and capability utilization slid amid refinery turnaround actions, which have now been accomplished, the corporate mentioned. Imperial offered 470,000 bpd of oil merchandise, down by 5,000 bpd year-on-year.
“Refining margins fell as rising provide greater than met rising demand and geopolitical trade-flow disruptions lessened”, Imperial mentioned.
Money movement from working actions stood at CAD 1.6 billion ($1.2 billion), up from CAD 885 million ($640.3 million) for the second quarter of 2023. Capital and exploration bills fell from CAD 493 million ($640.3 million) for the second quarter of 2023 to CAD 462 million ($334.3 million) for the second quarter of 2024.
Imperial held CAD 2 billion ($1.4 billion) in money and money equivalents as of the tip of the second quarter of 2024.
It distributed CAD 321 million ($232.2 million) in dividends throughout the second quarter. Imperial declared 60 Canadian cents per share in third quarter dividend.
Corson mentioned Imperial is now concentrating on to finish the repurchase of as much as 5 p.c of its excellent shares earlier than 2024 ends, sooner than the 12-month interval it set when renewing its annual regular course issuer bid final June.
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