Summary
Imperial Oil Limited reported a significant decrease in net income for the first quarter of 2015 compared to the same period in 2014, primarily driven by lower crude oil and natural gas prices. Net income fell to $421 million ($0.50 per diluted share) from $946 million ($1.11 per diluted share). The upstream segment experienced a net loss due to reduced commodity realizations, while the downstream and chemical segments showed improved performance, with downstream benefiting from higher marketing margins and chemicals from strong polyethylene margins. The company's financial position shows total assets of $41.6 billion and total liabilities of $18.9 billion as of March 31, 2015. Cash flow from operating activities declined substantially to $281 million from $1,085 million, largely impacted by lower earnings and working capital changes. Capital expenditures remained significant, with $1,011 million invested in property, plant, and equipment, mainly towards the Cold Lake Nabiye and Kearl expansion projects.
Key Highlights
- 1Net income for Q1 2015 decreased significantly to $421 million from $946 million in Q1 2014, primarily due to lower commodity prices.
- 2Upstream segment reported a net loss of $189 million in Q1 2015, a sharp decline from a net income of $452 million in Q1 2014, driven by lower crude oil and gas realizations.
- 3Downstream segment's net income increased to $565 million from $488 million, attributed to higher marketing margins and an asset sale gain.
- 4Chemical segment's net income rose to $66 million from $43 million, primarily due to strong polyethylene margins.
- 5Operating cash flow decreased substantially to $281 million in Q1 2015 from $1,085 million in Q1 2014.
- 6Capital expenditures remained robust at $1,011 million for additions to property, plant, and equipment, focusing on Cold Lake Nabiye and Kearl expansion projects.