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Imperial Oil announces second-quarter financial and operating results
| Toronto, ON,
July 21, 2005
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Imperial Oil today announced net income for the second quarter of 2005 of $539
million or $1.56 a share, versus $504 million or $1.40 a share for the second
quarter of 2004. Net income for the first six months of 2005 was $932 million
or $2.68 a share, compared with $970 million or $2.69 a share for the first
half of 2004.
Earnings in the second quarter were higher than
in 2004 due to higher realizations for crude oil and natural gas, stronger
refining margins and increased Cold Lake bitumen and natural gas production
volumes. These factors were partially offset by the negative impact of a
higher Canadian dollar and higher planned maintenance turnaround activities at
the company's refineries. Earnings were also impacted by higher stock-related
compensation expenses primarily as a result of the increase in the company's
share price, as well as costs associated with relocating the company's
headquarters.
Total revenues were $6,802 million in the
second quarter and
$12,760 million in the first half of 2005, versus
$5,466 million and $10,533 million in the same periods of 2004. Capital and
exploration expenditures were $353 million in the second quarter and
$678 million in the first half of 2005, compared with $311 million and $664
million in the corresponding periods of 2004. During the first half of 2005,
the company repurchased about 8.9 million shares for
$802 million. At
June 30, 2005 the company's balance of cash and marketable securities was $564
million, compared with $1,279 million at the end of 2004.
Imperial's chairman, president and chief executive officer Tim Hearn said that
higher production volumes in the current favorable price environment
contributed to increased earnings in the second quarter despite higher planned
maintenance at the company's refineries and upstream operations. Looking
ahead, Hearn added: "Imperial has the leading resource position in Canada with
a diverse asset base, including premium quality assets such as our Kearl
property. Development of these resources, along with our continuing focus on
strong operating performance and reliability, provides a solid foundation for
long-term growth for our shareholders."
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.
Click here to read our second quarter interim report.
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