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Imperial Oil Limited announces first quarter 2005 earnings
| Toronto, ON,
April 21, 2005
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Imperial Oil today announced net income for the first quarter of 2005 of $393
million or $1.12 a share, versus $466 million or $1.29 a share for the first
quarter of 2004.
Lower earnings were mainly due to the
negative impact of about
$130 million from lower volumes and higher
maintenance costs associated with a major coker turnaround at Syncrude. The
company's excellent 2004 operating performance continued into the first
quarter of 2005 with strong performances at Cold Lake, downstream and chemical
facilities more than offsetting the natural decline in conventional crude oil
and natural gas operations.
Strong light crude oil and
natural gas prices and industry refining and petrochemical margins totalling
about $250 million were favourable compared to the first quarter of 2004, but
their positive impact on earnings were moderated by lower Cold Lake bitumen
realizations of about $50 million and the impact of a higher Canadian dollar
of about $80 million. The lower earnings were also due to higher stock-related
compensation expenses of about $80 million primarily as a result of the
significant increase in the company's share price. Recognizing stock-related
compensation expenses in earnings, on the basis of market prices of the
company's shares, has been a long-standing, transparent accounting practice of
the company.
Total revenues were $5,958 million in the first
quarter, versus
$5,067 million in the corresponding period of
2004. Capital and exploration expenditures were $325 million, compared with
$353 million a year earlier. During the first quarter the company repurchased
3.7 million shares for $323 million. At March 31, 2005 the company's balance
of cash and marketable securities was
$537 million, compared with
$1,279 million at the end of 2004.
Imperial's chairman,
president and chief executive officer Tim Hearn said the company continued to
achieve improvements in the controllable aspects of the business, such as cost
management, volume performance and operating reliability. "Our strategy is to
consistently deliver solid operating and financial performance over the long
term, which is the key to success irrespective of market conditions or
commodity prices," Hearn said.
Imperial Oil is one of
Canada's largest corporations and has been a leading member of the country's
petroleum industry for 125 years. It is one of Canada's largest producers of
crude oil and natural gas liquids and a major producer of natural gas. It is
also Canada's largest producer and marketer of petroleum products, sold
primarily under the Esso brand, and a major producer of petrochemicals.
Highlights
Management's discussion & analysis
Financials
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