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Rich Kruger's remarks

Throughout the year, Imperial improved performance and strengthened its competitive position, focusing on increasing cash flow while delivering industry-leading shareholder returns over the business cycle.

Imperial’s downstream business continued to deliver strong performance across the value chain in 2017. Refining achieved several best-ever results, most notably in energy efficiency and reliability. Petroleum product sales reached the highest level in more than 25 years, demonstrating the company’s commitment to grow volumes and deliver value to customers. Imperial increased its branded sales with the conversion of Husky’s truck transport network to the Esso brand and the opening of Canada’s first Mobil-branded service stations.

Imperial achieved gross oil-equivalent production of 375,000 barrels per day in 2017. The company continued to implement upstream enhancements, increasing annual production at Cold Lake and Kearl, while progressing additional opportunities to further improve performance.

Substantial progress was made towards addressing reliability issues at Kearl. Following these improvements, Kearl is expected to produce an annual average of 200,000 barrels per day gross in 2018.

Capital-efficient investments to add front-end redundancy and flow distribution optionality were announced in the fourth quarter and are expected to be complete by year-end 2019. This work will position the Kearl operation to perform beyond its initial scope by increasing annual average gross production to approximately 240,000 barrels per day in 2020.

Additionally, the company returned more than $1.1 billion to shareholders in 2017 with the resumption of share purchases and continued dividend growth.

Imperial has high-quality assets, the advantage of integration and a dedicated workforce. We are well-positioned to continue to deliver long-term value to our shareholders.

Rich Kruger
Chairman, president and chief executive officer

Rich Kruger