Summary
Imperial Oil Limited's 2013 10-K filing highlights a year of significant operational progress and strategic investment, particularly marked by the ramp-up of the Kearl oil sands project. The company, a major integrated oil company in Canada and majority-owned by Exxon Mobil Corporation, reported net income of $2.83 billion. Upstream operations were bolstered by the acquisition of a 50% interest in Celtic Exploration Ltd., contributing to a 6% increase in gross oil-equivalent production. Downstream operations saw a decline in refining margins, though marketing results improved. Chemical segment performance remained stable. The company continued to make substantial capital expenditures, primarily in its Upstream segment, for projects like Kearl and the Nabiye expansion at Cold Lake, indicating a strong commitment to future growth and resource development.
Key Highlights
- 1Imperial Oil's net income for 2013 was $2.83 billion, though this was a decrease from $3.77 billion in 2012, primarily due to lower refining margins and increased costs associated with the Kearl project start-up.
- 2The company acquired a 50% interest in Celtic Exploration Ltd. for $1.6 billion, adding natural gas and crude oil assets to its portfolio.
- 3The Kearl oil sands project commenced initial production in April 2013, with the expansion project 72% complete and on schedule for a 2015 start-up, representing a major capital investment.
- 4Upstream segment net income decreased to $1.71 billion from $1.89 billion, impacted by higher Kearl start-up and operating costs, lower Syncrude volumes, and increased diluent and energy costs at Cold Lake.
- 5Downstream segment net income decreased significantly to $1.05 billion from $1.77 billion, largely due to lower industry refining margins and a $280 million after-tax charge related to the conversion of the Dartmouth refinery to a fuels terminal.
- 6Total capital and exploration expenditures increased to $8.02 billion from $5.68 billion in 2012, with the majority directed towards Upstream projects, including acquisitions and major project development.
- 7The company reported total proved reserves of 3.62 billion oil-equivalent barrels at year-end 2013, with 42% classified as proved undeveloped, primarily associated with the Kearl and Cold Lake fields.