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Imperial Oil Limited announces second quarter 2003 earnings
| Toronto, ON, July 23, 2003
| Imperial Oil Limited today announced second-quarter net earnings of $514 million or $1.38 a share, compared with $310 million or 82 cents a share in 2002. The main factors in the increase were improved industry margins on sales of petroleum products, higher prices for natural gas and increased production of crude oil.
Net earnings in the first half of 2003 were $1,052 million or $2.80 a share, compared with $420 million or $1.11 a share during the same period last year. The main contributors to that increase were higher prices for natural gas and crude oil, and improved petroleum-product margins.
Results in both periods also benefited from lower income tax rates and favourable foreign-exchange effects on the company's U.S.-dollar-denominated debt. However, the foreign-exchange benefits were more than offset by the negative impact of the higher Canadian dollar on resource and product prices.
Total revenues were $9,988 million during the first half of 2003, compared with $7,680 million in the same period last year.
Capital and exploration expenditures rose to $744 million at the end of the first half of 2003 from $624 million during the corresponding period of last year.
The company repurchased 6.8 million shares for $312 million during the first half of 2003, compared with 296,000 shares for $13 million during the same period last year. Since the buyback programs began in 1995, the company has repurchased 209.5 million shares for $5,481 million.
During June and July of this year, the company replaced its entire U.S.-dollar-denominated debt with long term Canadian-dollar loans.
The balance of cash and marketable securities was $964 million on June 30, 2003, compared with $575 million at the same time last year.
Tim Hearn, chairman, president and chief executive officer, said: "Imperial's solid financial position, diversity of operations and quality resource base allowed us to capitalize on favourable market conditions and set new earnings records. Our capital investment program - aimed at progressing major growth and environmental initiatives in the oil sands, Mackenzie gas, East Coast offshore and petroleum product operations - is firmly on track."
Imperial Oil is one of the largest producers of crude oil in Canada and a major producer of natural gas. The company is the largest refiner and marketer of petroleum products - sold primarily under the Esso brand name - and a major producer of petrochemicals.
Financial statements
Management's discussion & analysis
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