Imperial Oil Limited has recently released its 10-Q report, providing a detailed insight into its financial performance and operations. The company, a subsidiary of Exxon Mobil Corporation, is engaged in the exploration, production, and sale of crude oil and natural gas in Canada. It operates through three segments: Upstream, Downstream, and Chemical segments.
In the second quarter of 2024, Imperial Oil reported a net income (loss) of $1.133 billion, up from $675 million in the same period in 2023. The company's net income (loss) per common share, assuming dilution, rose to $2.11 from $1.15 in the second quarter of 2023. The Upstream segment saw an increase in average bitumen realizations by $14.38 per barrel, while the Downstream segment experienced lower margins primarily due to weaker market conditions. The Chemical segment reported a net loss of $25 million in the second quarter of 2024.
In terms of liquidity and capital resources, the company's cash flows from operating activities increased to $1.629 billion in the second quarter of 2024 from $885 million in the same period in 2023. Cash and cash equivalents at the end of the period stood at $2.020 billion. The company paid dividends of $321 million in the second quarter of 2024, with a per-share dividend of $0.60, up from $0.44 in the same period in 2023. Imperial Oil did not purchase any shares during the second quarter of 2024 and 2023.
For the six months ending in 2024, the company reported a net income (loss) of $2.328 billion, compared to $1.923 billion in the same period in 2023. The Upstream segment saw an increase in average bitumen realizations by $15.76 per barrel. The Downstream segment reported lower margins due to weaker market conditions, while the Chemical segment reported a net loss of $76 million.
Imperial Oil's cash flows from operating activities for the six months ending in 2024 increased significantly to $2.705 billion from $64 million in the same period in 2023. The company paid dividends of $599 million, with a per-share dividend of $1.10, up from $0.88 in the same period in 2023. Imperial Oil did not purchase any shares during the six months ending in 2024 and 2023.
The company also extended the maturity date of its existing long-term, variable-rate, Canadian dollar loan from ExxonMobil to June 30, 2035. However, the company did not purchase any shares during the second quarter of 2024 and 2023.
Imperial Oil's forward-looking statements include references to the company’s purchases under the normal course issuer bid and plans to accelerate completion prior to year end, the use of derivative instruments and effectiveness of risk mitigation, and the company’s belief that the commitment related to the long-term purchase agreement will not have a material effect on the company’s operations, financial condition, or financial statements.
As a result of these announcements, the company's shares have moved -0.2% on the market, and are now trading at a price of $67.88. If you want to know more, read the company's complete 10-Q report here.
