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Imperial reports strong operating performance in second quarter 2004
| Toronto, ON, July 22, 2004
| Imperial Oil Limited today announced net earnings for the second quarter of 2004 of $454 million or $1.26 a share. This compared with record second-quarter earnings of $514 million or $1.38 a share in 2003, which included non-recurring gains of about $110 million in tax benefits and $55 million in foreign-exchange gains on U.S.-dollar denominated debt. Net earnings for the first half of 2004 were
$963 million or $2.66 a share versus $1,052 million or $2.80 a share for the first half of 2003.
Imperial's six-month earnings reflect the company's strong operating and volume performance, despite lower production at Cold Lake due to the cyclic nature of the operation. The company was also able to capture the benefits of favourable market conditions including higher world oil prices and strong industry margins in petroleum refining and petrochemical products. However, when compared to the first six months of 2003, a higher Canadian dollar negatively affected realizations from resource and product sales by about $130 million.
Imperial's total revenues were $5,466 million for the second quarter and $10,533 million for the first six months of 2004, compared with $4,510 million and $9,988 million for the corresponding periods of 2003. Capital and exploration expenditures were $305 million in the second quarter and $650 million in the first six months of 2004, versus $389 million and $744 million in the same periods last year. The company's balance of cash and marketable securities was
$439 million at June 30, 2004, versus $448 million at the end of 2003.
Through the first six months of 2004, Imperial repurchased about six million shares for $363 million. In June, the Toronto Stock Exchange approved continuation of Imperial's share-purchase program, which enables the company to repurchase up to 17.9 million shares between June 23, 2004 and June 22, 2005.
Imperial's chairman, president and chief executive officer, Tim Hearn said that the company's operating performance remained strong through the second quarter. "Excluding non-recurring items, Imperial's second-quarter and six-month earnings were higher this year than in 2003, reflecting favourable market conditions and solid operating performance," Hearn said. "Earnings would have been even higher, without the effects of the Canadian dollar."
"Progress was also made on projects to provide future growth, such as the Mackenzie Gas Project," Hearn said. "Overall, Imperial remains well-positioned to continue to grow shareholder value."
Imperial is one of Canada's largest corporations and has been a leading member of the country's petroleum industry for more than a century. It is also the country's largest refiner and marketer of petroleum products -- sold primarily under the Esso and Mobil brands -- with a coast-to-coast supply network that includes 2,100 gasoline retail outlets.
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