Summary
Imperial Oil Ltd. reported a net income of $256 million for the first six months of 2017, a significant improvement from a net loss of $282 million in the same period of 2016. This turnaround was driven by stronger upstream segment performance, benefiting from higher Canadian crude oil realizations and a narrowed WTI/WCS differential. The downstream segment also contributed positively, with increased net income attributed to reduced planned turnaround activity and a gain from property sales, despite lower refining and marketing margins. For the second quarter of 2017, the company reported a net loss of $77 million, an improvement from a $181 million net loss in Q2 2016. The upstream segment's loss narrowed due to higher crude oil realizations, while the downstream segment saw increased net income. Imperial also resumed its share buyback program in the second quarter and continued to pay dividends, indicating a focus on returning capital to shareholders.
Key Highlights
- 1Improved financial performance with net income of $256 million for the first six months of 2017, compared to a net loss of $282 million in the prior year period.
- 2Upstream segment performance strengthened due to higher Canadian crude oil realizations and a narrower WTI/WCS differential.
- 3Downstream segment income increased, supported by reduced turnaround activity and a gain from property sales, though impacted by lower refining and marketing margins.
- 4Resumption of share repurchase program in Q2 2017, with approximately $127 million spent on buying back shares.
- 5Continued dividend payments, with the per-share dividend increasing to $0.30 for the first six months of 2017 compared to $0.28 in the prior year.
- 6Total assets decreased to $41.105 billion as of June 30, 2017, from $41.654 billion at the end of 2016.
- 7Cash generated from operating activities increased to $846 million for the first six months of 2017, up from $492 million in the same period of 2016.