Summary
Imperial Oil Ltd. reported a net loss of $181 million for the second quarter of 2016, a significant downturn compared to the $120 million net income in the same period of 2015. This loss was primarily attributed to the impact of wildfires in northern Alberta, which affected Syncrude and Kearl operations, resulting in an estimated $170 million reduction in net income. Lower crude oil realizations and higher depreciation expenses also contributed to the upstream segment's net loss. Despite the quarterly loss, the company's financial position remained robust, with total assets largely stable and a healthy shareholders' equity. Cash flow from operations saw an improvement year-over-year. The company also continued its dividend payments and initiated a new normal course issuer bid for share repurchases, signaling confidence in its ongoing operations and financial stability.
Key Highlights
- 1Imperial Oil Ltd. reported a net loss of $181 million ($0.21 per share) for Q2 2016, down from a net income of $120 million ($0.14 per share) in Q2 2015.
- 2The wildfires in northern Alberta significantly impacted Q2 2016 results, reducing net income by approximately $170 million.
- 3Upstream segment recorded a net loss of $290 million in Q2 2016, primarily due to lower crude oil realizations and wildfire impacts, compared to a net loss of $174 million in Q2 2015.
- 4Downstream segment net income decreased to $71 million in Q2 2016 from $215 million in Q2 2015, mainly due to higher refinery turnarounds and lower industry margins.
- 5Cash flow from operating activities increased to $443 million in Q2 2016 from $377 million in Q2 2015.
- 6The company paid dividends of $0.15 per common share in Q2 2016, an increase from $0.13 in Q2 2015.
- 7Imperial Oil announced a new normal course issuer bid to repurchase up to 1,000,000 common shares.