Imperial Oil Ltd. logged a three-decade-high output for the fourth quarter of 2023 however weaker commodity costs dragged down a powerful operational efficiency, the Canadian built-in vitality firm has reported.
“Upstream manufacturing within the fourth quarter averaged 452,000 gross oil-equivalent barrels per day, the best quarterly manufacturing in over 30 years when adjusting for the divestment of XTO Vitality Canada, with full-year manufacturing of 413,000 gross oil-equivalent barrels per day”, it mentioned in a latest information launch. Imperial had given up a web manufacturing of 140 million cubic ft a day of pure gasoline and 9,000 barrels per day (bpd) of petroleum, condensate and pure gasoline liquids when the corporate together with companion Exxon Mobil Corp. bought XTO Vitality Canada ULC in 2022 to Whitecap Assets Inc. for $1.9 billion in money.
The report manufacturing was due to Alberta province’s Kearl oil sands, which reached their largest quarterly and yearly output at 308,000 bpd and 270,000 bpd respectively.
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Imperial expects to additional ramp up manufacturing later this 12 months with what it says is the business’s first ever solvent-assisted steam-assisted gravity drainage venture, which is increasing its Chilly Lake oil sands manufacturing in Alberta. “The venture is anticipated to realize 15,000 gross barrels per day of manufacturing at full charges and in addition cut back greenhouse gasoline emissions depth by as much as 40 p.c in comparison with present steam processes”, it mentioned.
Calgary, Alberta-based Imperial reported CAD 1.4 billion ($1 billion) in web earnings for the October–December quarter, down from CAD 1.7 billion ($1.3 billion) for a similar interval 2022 and CAD 1.6 billion ($1.2 billion) for the previous quarter of 2023. Annual web revenue dropped to CAD 4.9 billion ($3.6 billion) from CAD 7.3 billion ($5.4 billion).
Imperial achieved “the biggest deliberate turnaround in Sarnia web site [Ontario refinery] historical past” and hit a refinery capability utilization price of 94 p.c with a quarterly throughput of 407,000 bpd. “Fourth quarter outcomes replicate robust working efficiency, which was greater than offset by weaker commodity costs”, the press assertion mentioned.
Explaining its annual outcomes, Imperial famous vitality markets began to normalize final 12 months from their excessive in 2022, when oil and gasoline costs surged following Russia’s invasion of Ukraine. “Whereas demand for liquids set a report in 2023, provide continued to develop”, it mentioned.
“Within the second half, crude oil costs elevated because of robust demand, tight stock ranges, and ongoing actions by OPEC+ oil producers to restrict provide”, Imperial added referring to the Group of the Petroleum Exporting International locations Plus alliance, which incorporates Saudi Arabia and Russia.
“As well as, the Canadian WTI/WCS unfold started to weaken within the fourth quarter, however remained according to 2022 on an annual foundation”, it mentioned referring to the pricing distinction between Canada’s heavy crude benchmark Western Canada Choose and the USA’ mild crude benchmark West Texas Intermediate. “All through 2023, robust demand for gasoline and distillate mixed with low inventories saved refining margins robust, however in need of 2022 ranges on an annual foundation. Within the fourth quarter refining margins dropped as a consequence of increased stock and decrease seasonal demand”.
Money move from working actions skid to CAD 1.3 billion ($962.1 million) for the fourth quarter of 2023 from CAD 2.4 billion ($1.8 billion) for the third quarter and CAD 2.8 billion ($2.1 billion) for the corresponding interval the prior 12 months.
Imperial ended the 12 months with CAD 864 million ($639.5 million) in money and money equivalents.
It paid CAD 4.9 billion ($3.6 billion) to shareholders in 2023 by means of dividends and inventory buybacks and has now raised its quarterly dividend by 20 p.c to 60 Canadian cents per share.
To contact the writer, e-mail jov.onsat@rigzone.com
