- $1 billion of cash generated from operations; nearly $400 million returned to shareholders
- Quarterly dividend raised nearly 20 percent; share buyback program increased
- Strong downstream and chemical earnings driven by operational reliability and market conditions
- Canadian upstream business environment impacting industry competitiveness and financial performance
|millions of Canadian dollars, unless noted
|Net income (loss) (U.S. GAAP)
|Net income (loss) per common share
- assuming dilution (dollars)
|Capital and exploration expenditures
Estimated net income in the first quarter of 2018 was $516 million, an increase of $183 million compared to the net income of $333 million in the same period of 2017. The prior year’s results included a $151 million gain on the sale of a surplus property.
“Imperial’s first quarter performance demonstrates the advantages of our integration across the value chain,” said Rich Kruger, chairman, president and chief executive officer. “We captured additional value in our downstream operations through price-advantaged feedstocks, which helped to offset discounted Canadian crude prices associated with market access constraints.”
Upstream gross oil-equivalent production was 370,000 barrels per day, down slightly from the first quarter of 2017. Project activities to add supplemental crushing capacity and flow distribution interconnects at the Kearl oil sands mine were progressed as planned. This work will enhance reliability and reduce downtime with the expectation of increasing annual average gross production from 200,000 barrels per day in 2018 and 2019 to 240,000 barrels per day in 2020.
The company’s downstream and chemical businesses earned nearly $600 million in the quarter, reflecting continued strong reliability and favourable industry margins. Refinery throughput averaged 408,000 barrels per day, up 10,000 barrels per day from the first quarter of 2017. Petroleum product sales averaged 478,000 barrels per day, compared to 486,000 barrels per day in the same period of the prior year.
Imperial returned nearly $400 million to shareholders through dividends and share purchases in the first quarter. In April, consistent with the company’s long-standing commitment to shareholders, Imperial amended its current share buyback program to increase the number of common shares the company is able to purchase. Additionally, Imperial declared a second quarter dividend of 19 cents per share, nearly a 20 percent increase.
“These actions reflect the company’s financial strength and confidence in its future,” Kruger added. “We are well positioned to pursue attractive growth opportunities and focused on increasing shareholder returns.”
After more than a century, Imperial continues to be an industry leader in applying technology and innovation to responsibly develop Canada's energy resources. As Canada's largest petroleum refiner, a major producer of crude oil, a key petrochemical producer and a leading fuels marketer from coast to coast, Imperial remains committed to high standards across all areas of its business.