Imperial Oil Reveals Q1 Financial, Operating Results
Imperial Oil today announced net income for the first quarter of 2009 of $289 million or $0.33 per share, compared with $681 million or $0.75 per share for the same period last year.
Earnings in the first quarter were lower than in the same quarter in 2008, as lower Upstream and Chemical earnings were partially offset by higher Downstream earnings. In the Upstream, earnings decreased primarily due to lower crude oil and natural gas prices, partially offset by the impact of lower royalty costs due to lower commodity prices and a lower Canadian dollar. Higher Downstream earnings were primarily due to stronger margins and increased refinery throughput and utilization. Chemical earnings were negatively impacted by the slow economy, with lower overall margins and sales volumes. Higher share-based compensation costs also contributed to lower earnings.
During the first quarter, operating revenues were $4,653 million, versus $7,231 million for the same period of 2008. Capital and exploration expenditures were $494 million, compared with $291 million in the first quarter of 2008, and Imperial repurchased about 10.5 million shares for $429 million. At March 31, the company's balance of cash was $755 million versus $1,974 million at the end of 2008.
"Sharply lower oil and natural gas prices as a result of the global economic downturn produced lower earnings for the quarter, compared to the same period last year. While Downstream earnings were higher, the significant decline in commodity prices reduced our earnings overall," said Bruce March, chairman, president and chief executive officer of Imperial Oil. "Imperial is well-positioned to weather this economic downturn with its strong balance sheet, minimal debt, and long-term disciplined approach. Although earnings are lower, our plans are to continue our long-term strategy of investing through the business cycle and advancing our portfolio of company growth projects."
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