Summary
Imperial Oil Ltd. reported a net income of $635 million for the second quarter of 2012, a decrease from $726 million in the same period last year. For the six months ended June 30, 2012, net income increased to $1,650 million from $1,507 million in 2011. The decrease in second-quarter earnings was primarily driven by lower upstream realizations due to commodity prices and higher planned maintenance activities, partially offset by stronger refining margins. Cash flow from operations saw a significant increase in the second quarter, reaching $1,317 million, up from $656 million in the prior year. This improvement was largely due to working capital effects. However, investing activities used more cash, with $1,224 million spent in the quarter compared to $893 million in the prior year, mainly for capital expenditures on the Kearl project. The company also renewed its normal course issuer bid to repurchase up to approximately 42 million shares.
Key Highlights
- 1Net income for Q2 2012 was $635 million ($0.75/share diluted), down from $726 million ($0.85/share diluted) in Q2 2011.
- 2Six-month net income for 2012 was $1,650 million ($1.94/share diluted), up from $1,507 million ($1.76/share diluted) in the same period of 2011.
- 3Operating cash flow significantly increased to $1,317 million in Q2 2012, up from $656 million in Q2 2011, primarily due to working capital changes.
- 4Capital expenditures increased to $1,290 million in Q2 2012 from $903 million in Q2 2011, largely driven by the Kearl project.
- 5Upstream segment income decreased significantly in Q2 2012 due to lower commodity prices and planned maintenance, while Downstream segment income improved due to stronger refining margins.
- 6The Chemical segment reported its best quarter on record, with net income of $49 million.
- 7The company announced a new normal course issuer bid to repurchase up to approximately 42 million shares.