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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
April
29, 2022
IMPERIAL OIL LIMITED
(Exact name of
registrant as specified in its charter)
Canada | 0-12014 | 98-0017682 | ||
| (Commission File Number) | (IRS Employer Identification No.) |
| T2C 5N1 | |||
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code:
1-800-567-3776
(Former name or
former address, if changed since last report)
Check the appropriate box below if the Form
8-K
filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Securities registered pursuant to Section 12(b) of the Act:
| Trading symbol |
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| None |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the
Securities Act of 1933 (§230.405 of this chapter) or Rule
12b-2
of the Securities Exchange Act of 1934
(§240.12b-2
of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 |
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On April 29, 2022, Imperial Oil Limited (the company or Imperial) by means of a press release disclosed
information relating to the companys financial condition and results of operations for the fiscal quarter ended March 31, 2022. A copy of the press release is attached as Exhibit 99.1 to this report.
Item 9.01 |
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(d) |
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The following exhibit is furnished as part of this report on Form
8-K:
99.1 | News release of the company on April 29, 2022 disclosing information relating to the companys estimated first quarter financial and operating results for the fiscal quarter ended March 31, 2022. | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
IMPERIAL OIL LIMITED | ||||||||
Date: April 29, 2022 | ||||||||
By: | /s/ Ian Laing | |||||||
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Name: | Ian Laing | |||||||
Title: | Vice-president, general counsel and | |||||||
corporate secretary | ||||||||
By: | /s/ Cathryn Walker | |||||||
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Name: | Cathryn Walker | |||||||
Title: | Assistant corporate secretary |
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Calgary, April 29, 2022 | Exhibit 99.1 |
Imperial announces first quarter 2022 financial and operating results
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millions of Canadian dollars, unless noted | 2022 | 2021 | Δ | |||||||||
| 1,173 | 392 | +781 | |||||||||
| 1.75 | 0.53 | +1.22 | |||||||||
| 296 | 163 | +133 |
Imperial reported estimated net income in the first quarter of $1,173 million up from $813 million in the fourth quarter of
2021, driven primarily by strong market conditions. Cash flow from operating activities was $1,914 million up from $1,632 million in the fourth quarter of 2021. Both net income and cash flow from operating activities represent the highest
first quarter result in over 30 years.
Imperial achieved strong financial results across all business lines in the first quarter as pandemic restrictions
were lifted and commodity prices further strengthened, said Brad Corson, chairman, president and chief executive officer. With strong margins across all our businesses, we are very well positioned to continue generating substantial free
cash flow
1
this year.
Upstream production in the first quarter averaged 380,000 gross
oil-equivalent
barrels per day. At Kearl, quarterly total gross production averaged 186,000 barrels per day with operations impacted by extreme cold weather and unplanned downtime. Subsequent to the first quarter,
Kearls April
month-to-date
production increased to about 250,000 total gross barrels per day. At Cold Lake, the companys strategic focus on reliability and
optimization continued to drive strong operating performance with quarterly production of 140,000 gross barrels per day.
In the Downstream, quarterly refining
throughput averaged 399,000 barrels per day with capacity utilization of 93% representing the third consecutive quarter with utilization above 90%. Quarterly petroleum product sales averaged 447,000 barrels per day as pandemic restrictions began
lifting late in the quarter.
¹ non-GAAP financial measure - see attachment VI for definition and reconciliation
After more than a century, Imperial continues to be an industry leader in applying technology and innovation to responsibly
develop Canadas energy resources. As Canadas largest petroleum refiner, a major producer of crude oil, a key petrochemical producer and a leading fuels marketer from coast to coast, our company remains committed to high standards across
all areas of our business.
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During the quarter, construction of the Sarnia Products Pipeline was completed ahead of schedule, with
start-up
and commissioning completed in April. The pipeline provides enhanced access into the high-value Toronto market and is expected to reduce annual transportation costs by $40 million.
Chemical first quarter net income was $56 million, compared to net income of $64 million in the fourth quarter of 2021, as margins eased from record highs.
During the quarter, Imperial returned $449 million to shareholders through the accelerated completion of the companys normal course issuer bid, with the
program concluding on January 31, 2022. The company also paid $185 million in dividends, and declared a second quarter dividend of 34 cents per share. Imperial has a long track record of returning surplus cash to shareholders and I
am pleased to announce the companys plans to initiate a substantial issuer bid returning up to $2.5 billion to shareholders in the second quarter of 2022, said Corson.
Imperial continues to advance lower emission solutions in support of its sustainability goals, including its recently announced oil sands greenhouse gas intensity
reduction goal of 30 percent by 2030 from 2016 levels. Imperial is a member of the Oil Sands Pathways to Net Zero alliance that is working with federal and provincial governments with a goal to achieve net zero greenhouse gas emissions from oil
sands operations by 2050. The company also continues to progress plans for a world-class renewable diesel manufacturing facility at its Strathcona refinery, to provide Canada with a large new domestic source of renewable fuel to help reduce Scope 3
emissions.
Imperial remains confident in our ability to reduce emissions and advance lower-emission technologies. We are also encouraged by recent steps
taken by the federal government to support investment tax credits on large-scale carbon capture projects to help Canada achieve its climate goals, said Corson. Continued collaboration and our long history of research and development will
continue to serve us well on this journey.
¹
non-GAAP financial measure see attachment VI for definition and reconciliation
After more than a century, Imperial continues to be an industry leader in applying technology and innovation to responsibly
develop Canadas energy resources. As Canadas largest petroleum refiner, a major producer of crude oil, a key petrochemical producer and a leading fuels marketer from coast to coast, our company remains committed to high standards across
all areas of our business.
IMPERIAL OIL LIMITED
First quarter highlights
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¹ non-GAAP financial measure
see attachment VI for definition and reconciliation
5
IMPERIAL OIL LIMITED
Current business environment
During the
COVID-19
pandemic, industry investment to maintain and increase production capacity was restrained to preserve
capital, resulting in underinvestment and supply tightness as demand for petroleum and petrochemical products recovered. Across late 2021 and early 2022, this dynamic, along with supply chain constraints, and a continuation of demand recovery led to
a steady increase in oil and natural gas prices. In the first quarter of 2022, tightness in the oil and natural gas markets was further exacerbated by Russias invasion of Ukraine and subsequent sanctions imposed upon business and other
activities in Russia. The price of crude oil and certain regional natural gas indicators increased to levels not seen for several years.
Operating results
First quarter 2022 vs. first quarter 2021
First Quarter | ||||||||
millions of Canadian dollars, unless noted | 2022 | 2021 | ||||||
| 1,173 | 392 | ||||||
| 1.75 | 0.53 |
Upstream
Net income (loss) factor analysis
millions of Canadian dollars
Price Higher realizations were generally in line with increases in marker prices, driven primarily by increased demand and
supply chain constraints. Average bitumen realizations increased by $42.17 per barrel generally in line with WCS and synthetic crude oil realizations increased by $49.83 per barrel generally in line with WTI.
Volumes Lower volumes primarily driven by extreme cold weather and unplanned downtime at Kearl.
Royalty Higher royalties primarily driven by improved commodity prices.
Marker prices and average realizations | ||||||||
First Quarter | ||||||||
Canadian dollars, unless noted | 2022 | 2021 | ||||||
| 95.01 | 58.14 | ||||||
| 80.46 | 45.64 | ||||||
| 14.55 | 12.50 | ||||||
| 89.36 | 47.19 | ||||||
| 117.24 | 67.41 | ||||||
| 0.79 | 0.79 |
6
IMPERIAL OIL LIMITED
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First Quarter | ||||||||
| 2022 | 2021 | ||||||
| 132 | 178 | ||||||
| 140 | 140 | ||||||
| 77 | 79 | ||||||
| 186 | 251 | ||||||
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Downstream
Net income (loss) factor
analysis
millions of Canadian dollars
Margins Higher margins primarily reflect improved market conditions.
Refinery utilization and petroleum product sales | ||||||||
First Quarter | ||||||||
thousands of barrels per day, unless noted | 2022 | 2021 | ||||||
| 399 | 364 | ||||||
| 93 | 85 | ||||||
| 447 | 414 |
Improved refinery throughput in the first quarter of 2022 primarily reflects increased demand.
Improved petroleum product sales in the first quarter of 2022 were mainly due to increased demand.
Chemicals
Net income (loss) factor analysis
millions of Canadian dollars
7
IMPERIAL OIL LIMITED
Corporate and other
First Quarter | ||||||||
millions of Canadian dollars | 2022 | 2021 | ||||||
| (54 | ) | (46 | ) |
Liquidity and capital resources
First Quarter | ||||||||
millions of Canadian dollars | 2022 | 2021 | ||||||
| ||||||||
| 1,914 | 1,045 | ||||||
| (279 | ) | (147 | ) | ||||
| (639 | ) | (202 | ) | ||||
| 996 | 696 | ||||||
| 3,149 | 1,467 |
Cash flow generated from operating activities primarily reflects higher Upstream realizations, improved Downstream margins, and
favourable working capital impacts.
Cash flow used in investing activities primarily reflects higher additions to property, plant and equipment.
Cash flow used in financing activities primarily reflects:
First Quarter | ||||||||
millions of Canadian dollars, unless noted | 2022 | 2021 | ||||||
| 185 | 162 | ||||||
| 0.27 | 0.22 | ||||||
| 449 | - | ||||||
| 8.9 | - | ||||||
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The company completed share repurchases under its normal course issuer bid on January 31, 2022. The company did not purchase shares
during the first quarter of 2021.
On April 29, 2022 the company announced its intention to launch a substantial issuer bid pursuant to which the company will
offer to purchase for cancellation up to $2,500,000,000 of its common shares. The substantial issuer bid will be made through a modified Dutch auction, with a tender price range to be determined by the company at the time of commencement of the
offer. Shares may also be tendered by way of a proportionate tender, which will result in a shareholder maintaining their proportionate share ownership. ExxonMobil has advised Imperial that it intends to make a proportionate tender in connection
with the offer in order to maintain its proportionate share ownership at approximately 69.6 percent following completion of the offer. Nothing in this report shall constitute an offer to purchase or a solicitation of an offer to sell any
shares.
Key financial and operating data follow.
8
IMPERIAL OIL LIMITED
Additional information regarding the tender offer
The tender offer described in this communication (the Offer) has not yet commenced. This communication is for informational purposes only. This communication
is not a recommendation to buy or sell Imperial Oil Limited shares or any other securities, and it is neither an offer to purchase nor a solicitation of an offer to sell Imperial Oil Limited Shares or any other securities.
On the commencement date of the Offer, Imperial Oil Limited will file an offer to purchase, accompanying issuer bid circular and related letter of transmittal and
notice of guaranteed delivery (the Offering Documents) with Canadian securities regulatory authorities and mail these to the companys shareholders. The company will also file a tender offer statement on Schedule TO, including the
Offering Documents, with the United States Securities and Exchange Commission (the SEC). The Offer will only be made pursuant to the Offering Documents filed with Canadian securities regulatory authorities and as a part of the Schedule
TO. Shareholders should read carefully the Offering Documents because they contain important information, including the various terms of, and conditions to, the Offer. Once the Offer is commenced, shareholders will be able to obtain a free copy of
the tender offer statement on Schedule TO, the Offering Documents and other documents that Imperial Oil Limited will be filing with the SEC at the SECs website at
www.sec.gov
,
with Canadian securities regulatory authorities at
www.sedar.com
,
or from Imperial Oil Limiteds website at
www.imperialoil.ca
.
Forward-looking statements
Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans are forward-looking statements.
Forward-looking statements can be identified by words such as believe, anticipate, intend, propose, plan, goal, seek, project, predict, target, estimate, expect, strategy, outlook, schedule, future, continue, likely, may, should, will and similar
references to future periods. Forward-looking statements in this report include, but are not limited to, references to the companys intention to initiate a substantial issuer bid, including the size, timing for determining the terms and
pricing and commencement, structure and ExxonMobils intent to make a proportionate tender; being well positioned to generate substantial free cash flow in 2022; anticipated cost reductions from the Sarnia Products Pipeline; continuing to
advance lower emissions solutions in support of the companys sustainability goals, and benefit from collaboration and research and development; oil sands greenhouse gas intensity reduction goal of 30 percent by 2030; the Oil Sands
Pathways to Net Zero alliance goal to achieve net zero greenhouse gas emissions from oil sands operations by 2050; continuing to progress the Strathcona renewal diesel manufacturing facility and its potential impact; the impact of leveraging the
Syncrude interconnect pipeline; the marketing process for XTO Energy Canada, including evaluation of bids and operations continuing as normal throughout the marketing process; and the expanded partnership with Loblaws PC Optimum program.
Forward-looking statements are based on the companys current expectations, estimates, projections and assumptions at the time the statements are made. Actual
future financial and operating results, including expectations and assumptions concerning demand growth and energy source, supply and mix; production rates, growth and mix across various assets; project plans, timing, costs, technical evaluations
and capacities and the companys ability to effectively execute on these plans and operate its assets, including factors influencing a final investment decision for the renewable diesel complex at Strathcona; the adoption and impact of new
facilities or technologies on reductions to GHG emissions intensity, including but not limited to Strathcona renewable diesel, solvent technologies to replace energy intensive steam at Cold Lake, boiler flue gas technology at Kearl, and support for
and advancement of carbon capture and storage, and any changes in the scope, terms, or costs of such projects; the amount and timing of emissions reductions; receipt of regulatory approvals; support from policymakers and other stakeholders for
various new technologies such as carbon capture and storage; that the necessary exemptive relief to proceed with the substantial issuer bid under applicable securities laws will be received on the timeline anticipated; ExxonMobil making a
proportionate tender in connection with the substantial issuer bid; applicable laws and government policies, including with respect to climate change and GHG emissions reductions; capital and environmental expenditures; progression of
COVID-19
and its impacts on Imperials ability to operate its assets; the companys ability to effectively execute on its business continuity plans and pandemic response activities; and commodity prices,
foreign exchange rates and general market conditions could differ materially depending on a number of factors.
9
IMPERIAL OIL LIMITED
These factors include global, regional or local changes in supply and demand for oil, natural gas, and petroleum and
petrochemical products and resulting price, differential and margin impacts, including foreign government action with respect to supply levels and prices, the impact of
COVID-19
on demand and the occurrence of
wars; availability and allocation of capital; the receipt, in a timely manner, of regulatory and third-party approvals; the results of research programs and new technologies, the ability to bring new technologies to commercial scale on a
cost-competitive basis, and the competitiveness of alternative energy and other emission reduction technologies; lack of required support from governments and policymakers for adoption of new technologies for emissions reductions; unanticipated
technical or operational difficulties; project management and schedules and timely completion of projects; availability and performance of third-party service providers, including in light of restrictions related to
COVID-19;
environmental risks inherent in oil and gas exploration and production activities; political or regulatory events, including changes in law or government policy, environmental regulation including
climate change and greenhouse gas regulation, and actions in response to
COVID-19;
management effectiveness and disaster response preparedness, including business continuity plans in response to
COVID-19;
operational hazards and risks; cybersecurity incidents, including increased reliance on remote working arrangements; currency exchange rates; general economic conditions; and other factors discussed in
Item 1A risk factors and Item 7 managements discussion and analysis of financial condition and results of operations of Imperial Oil Limiteds most recent annual report on Form
10-K.
Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas
companies and some that are unique to Imperial Oil Limited. Imperials actual results may differ materially from those expressed or implied by its forward-looking statements and readers are cautioned not to place undue reliance on them.
Imperial undertakes no obligation to update any forward-looking statements contained herein, except as required by applicable law.
In this release all dollar
amounts are expressed in Canadian dollars unless otherwise stated. This release should be read in conjunction with Imperials most recent Form
10-K.
Note that numbers may not add due to rounding.
The term project as used in this release can refer to a variety of different activities and does not necessarily have the same meaning as in any government
payment transparency reports.
10
IMPERIAL OIL LIMITED
Attachment I | ||||||||
Three Months | ||||||||
millions of Canadian dollars, unless noted | 2022 | 2021 | ||||||
| ||||||||
| 12,686 | 6,998 | ||||||
| 11,152 | 6,486 | ||||||
| 1,534 | 512 | ||||||
| 361 | 120 | ||||||
| 1,173 | 392 | ||||||
| 1.75 | 0.53 | ||||||
| 1.75 | 0.53 | ||||||
| ||||||||
| 16 | 2 | ||||||
| 43,810 | 39,007 | ||||||
| 5,171 | 5,144 | ||||||
| 22,276 | 21,736 | ||||||
| 27,471 | 26,906 | ||||||
| ||||||||
| 228 | 161 | ||||||
| 0.34 | 0.22 | ||||||
| ||||||||
| 669.1 | 734.1 | ||||||
| 671.9 | 735.7 |
11
IMPERIAL OIL LIMITED
|
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Three Months | ||||||||
| 2022 | 2021 | ||||||
| 3,149 | 1,467 | ||||||
| ||||||||
| 1,173 | 392 | ||||||
| ||||||||
| 426 | 494 | ||||||
| (20 | ) | (3 | ) | ||||
| (331 | ) | 60 | |||||
| 695 | (23 | ) | |||||
| (29 | ) | 125 | |||||
| 1,914 | 1,045 | ||||||
| ||||||||
| (304 | ) | (167 | ) | ||||
| 24 | 7 | ||||||
| 1 | 13 | ||||||
| (279 | ) | (147 | ) | ||||
| (639 | ) | (202 | ) |
12
IMPERIAL OIL LIMITED
|
| |||||||
Three Months | ||||||||
| 2022 | 2021 | ||||||
| ||||||||
| 782 | 79 | ||||||
| 389 | 292 | ||||||
| 56 | 67 | ||||||
| (54 | ) | (46 | ) | ||||
| 1,173 | 392 | ||||||
| ||||||||
| 4,534 | 3,493 | ||||||
| 14,045 | 5,305 | ||||||
| 471 | 376 | ||||||
| (6,364 | ) | (2,176 | ) | ||||
| 12,686 | 6,998 | ||||||
| ||||||||
| 1,890 | 1,834 | ||||||
| 12,512 | 4,020 | ||||||
| 315 | 209 | ||||||
| (6,367 | ) | (2,176 | ) | ||||
| 8,350 | 3,887 | ||||||
| ||||||||
| 1,249 | 1,109 | ||||||
| 356 | 326 | ||||||
| 54 | 50 | ||||||
| - | - | ||||||
| 1,659 | 1,485 | ||||||
| ||||||||
| - | - | ||||||
| 147 | 133 | ||||||
| 23 | 25 | ||||||
| 55 | 31 | ||||||
| 225 | 189 | ||||||
| ||||||||
| 222 | 85 | ||||||
| 68 | 68 | ||||||
| 1 | 2 | ||||||
| 5 | 8 | ||||||
| 296 | 163 | ||||||
| 2 | 2 |
13
IMPERIAL OIL LIMITED
|
| |||||||
| Three Months | |||||||
2022 | 2021 | |||||||
| ||||||||
| 132 | 178 | ||||||
| 140 | 140 | ||||||
| 77 | 79 | ||||||
| 11 | 11 | ||||||
| 360 | 408 | ||||||
| 2 | 2 | ||||||
| 362 | 410 | ||||||
| 110 | 131 | ||||||
| 380 | 432 | ||||||
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| 123 | 173 | ||||||
| 107 | 112 | ||||||
| 59 | 74 | ||||||
| 11 | 11 | ||||||
| 300 | 370 | ||||||
| 1 | 2 | ||||||
| 301 | 372 | ||||||
| 107 | 127 | ||||||
| 319 | 393 | ||||||
| 189 | 248 | ||||||
| 187 | 182 | ||||||
| 1 | - | ||||||
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| 89.36 | 47.19 | ||||||
| 117.24 | 67.41 | ||||||
| 98.38 | 49.54 | ||||||
| 59.27 | 31.16 | ||||||
| 5.08 | 3.24 | ||||||
| 399 | 364 | ||||||
| 93 | 85 | ||||||
| ||||||||
| 209 | 198 | ||||||
| 173 | 153 | ||||||
| 48 | 43 | ||||||
| 17 | 20 | ||||||
| 447 | 414 | ||||||
| 210 | 211 |
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(b) |
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(c) |
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14
IMPERIAL OIL LIMITED
Attachment V | ||||||||
Net income (loss) (U.S. GAAP) millions of Canadian dollars |
| |||||||
| ||||||||
| 516 | 0.62 | ||||||
| 196 | 0.24 | ||||||
| 749 | 0.94 | ||||||
| 853 | 1.08 | ||||||
| 2,314 | 2.86 | ||||||
| ||||||||
| 293 | 0.38 | ||||||
| 1,212 | 1.57 | ||||||
| 424 | 0.56 | ||||||
| 271 | 0.36 | ||||||
| 2,200 | 2.88 | ||||||
| ||||||||
| (188 | ) | (0.25 | ) | ||||
| (526 | ) | (0.72 | ) | ||||
| 3 | - | ||||||
| (1,146 | ) | (1.56 | ) | ||||
| (1,857 | ) | (2.53 | ) | ||||
| ||||||||
| 392 | 0.53 | ||||||
| 366 | 0.50 | ||||||
| 908 | 1.29 | ||||||
| 813 | 1.18 | ||||||
| 2,479 | 3.48 | ||||||
| ||||||||
| 1,173 | 1.75 |
(a) Computed using the average number of shares outstanding during each period. The sum of the quarters presented may not add
to the year total.
15
IMPERIAL OIL LIMITED
Attachment VI
Non-GAAP
financial measures and other specified financial measures
Certain measures included in this document are not prescribed by U.S. Generally Accepted Accounting Principles (GAAP). These measures constitute
non-GAAP
financial measures under Securities and Exchange Commission Regulation G, and specified financial measures under National Instrument
52-112
Non-GAAP
and Other Financial Measures Disclosure
of the Canadian Securities Administrators.
Reconciliation of these
non-GAAP
financial measures to the most comparable GAAP measure, and other information required by these regulations have been provided.
Non-GAAP
financial measures and
specified financial measures are not standardized financial measures under GAAP and do not have a standardized definition. As such, these measures may not be directly comparable to measures presented by other companies, and should not be considered
a substitute for GAAP financial measures.
Cash flows from (used in) operating activities excluding working capital
Cash flows from (used in) operating activities excluding working capital is a
non-GAAP
financial measure that is the total cash
flows from operating activities less the changes in operating assets and liabilities in the period. The most directly comparable financial measure that is disclosed in the financial statements is cash flows from (used in) operating activities within
the companys Consolidated statement of cash flows. Management believes it is useful for investors to consider these numbers in comparing the underlying performance of the companys business across periods when there are significant
period-to-period
differences in the amount of changes in working capital. Changes in working capital is equal to Changes in operating assets and liabilities as
disclosed in the companys Consolidated statement of cash flows and in Attachment II of this document. This measure assesses the cash flows at an operating level, and as such, does not include proceeds from asset sales as defined in Cash flows
from operating activities and asset sales in the Frequently Used Terms section of the companys annual Form
10-K.
Reconciliation of cash flows from (used in) operating activities excluding working capital
Three Months | ||||||||
millions of Canadian dollars | 2022 | 2021 | ||||||
| ||||||||
| 1,914 | 1,045 | ||||||
| ||||||||
| 695 | (23 | ) | |||||
| 1,219 | 1,068 |
Free cash flow
Free cash flow is a
non-GAAP
financial measure that is cash flows from operating activities less additions to property, plant and equipment and equity company investments plus proceeds from asset sales. The most directly comparable
financial measure that is disclosed in the financial statements is cash flows from (used in) operating activities within the companys Consolidated statement of cash flows. This measure is used to evaluate cash available for financing
activities (including but not limited to dividends and share purchases) after investment in the business.
Reconciliation of free cash flow
Three Months | ||||||||
millions of Canadian dollars | 2022 | 2021 | ||||||
| ||||||||
| 1,914 | 1,045 | ||||||
| ||||||||
| (304 | ) | (167 | ) | ||||
| 24 | 7 | ||||||
| 1 | 13 | ||||||
| 1,635 | 898 |
16
IMPERIAL OIL LIMITED
Net income (loss) excluding identified items
Net income (loss) excluding identified items is a
non-GAAP
financial measure that is total net income (loss) excluding
individually significant
non-operational
events with an absolute corporate total earnings impact of at least $100 million in a given quarter. The net income (loss) impact of an identified item for an
individual segment in a given quarter may be less than $100 million when the item impacts several segments or several periods. The most directly comparable financial measure that is disclosed in the financial statements is net income (loss)
within the companys Consolidated statement of income. Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing significant
non-operational
events from business results. The company believes this view provides investors increased transparency into business results and trends, and provides investors with a view of the business as
seen through the eyes of management. Net income (loss) excluding identified items is not meant to be viewed in isolation or as a substitute for net income (loss) as prepared in accordance with U.S. GAAP. All identified items are presented on an
after-tax
basis.
Reconciliation of net income (loss) excluding identified items
There were no identified items in the first quarter of 2022 and 2021.
Cash
operating costs (cash costs)
Cash operating costs is a
non-GAAP
financial measure that consists of total expenses, less
costs that are
non-cash
in nature, including, Purchases of crude oil and products, Federal excise taxes and fuel charge, Depreciation and depletion,
Non-service
pension
and postretirement benefit, and Financing. The components of cash operating costs include (1) Production and manufacturing, (2) Selling and general and (3) Exploration, from the companys Consolidated statement of income, and as
disclosed in Attachment III of this document. The sum of these income statement lines serve as an indication of cash operating costs and does not reflect the total cash expenditures of the company. The most directly comparable financial measure that
is disclosed in the financial statements is total expenses within the companys Consolidated statement of income. This measure is useful for investors to understand the companys efforts to optimize cash through disciplined expense
management.
Reconciliation of cash operating costs | ||||||||
Three Months | ||||||||
millions of Canadian dollars | 2022 | 2021 | ||||||
| ||||||||
| 11,152 | 6,486 | ||||||
| ||||||||
| 8,350 | 3,887 | ||||||
| 479 | 404 | ||||||
| 426 | 494 | ||||||
| 4 | 11 | ||||||
| 7 | 14 | ||||||
| 1,886 | 1,676 | ||||||
| ||||||||
Three Months | ||||||||
| 2022 | 2021 | ||||||
| ||||||||
| 1,659 | 1,485 | ||||||
| 225 | 189 | ||||||
| 2 | 2 | ||||||
| 1,886 | 1,676 | ||||||
| ||||||||
Three Months | ||||||||
| 2022 | 2021 | ||||||
| 1,251 | 1,111 | ||||||
| 503 | 459 | ||||||
| 77 | 75 | ||||||
| 55 | 31 | ||||||
| 1,886 | 1,676 |
17
IMPERIAL OIL LIMITED
Unit cash operating cost (unit cash costs)
Unit cash operating costs is a
non-GAAP
ratio. Unit cash operating costs (unit cash costs) is calculated by dividing cash
operating costs by total gross
oil-equivalent
production, and is calculated for the Upstream segment, as well as the major Upstream assets. Cash operating costs is a
non-GAAP
financial measure and is disclosed and reconciled above. This measure is useful for investors to understand the expense management efforts of the companys major assets as a component of the
overall Upstream segment. Unit cash operating cost, as used by management, does not directly align with the definition of Average unit production costs as set out by the U.S. Securities and Exchange Commission (SEC), and disclosed in the
companys SEC Form
10-K.
Components of unit cash operating cost
Three Months | ||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||
millions of Canadian dollars | Upstream (a) | Kearl | Cold Lake | Syncrude | Upstream (a) | Kearl | Cold Lake | Syncrude | ||||||||||||||||||||||||
| 1,249 | 521 | 322 | 348 | 1,109 | 455 | 260 | 333 | ||||||||||||||||||||||||
| - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
| 2 | - | - | - | 2 | - | - | - | ||||||||||||||||||||||||
| 1,251 | 521 | 322 | 348 | 1,111 | 455 | 260 | 333 | ||||||||||||||||||||||||
| 380 | 132 | 140 | 77 | 432 | 178 | 140 | 79 | ||||||||||||||||||||||||
| 36.58 | 43.86 | 25.56 | 50.22 | 28.58 | 28.40 | 20.63 | 46.84 | ||||||||||||||||||||||||
| 28.90 | 34.65 | 20.19 | 39.67 | 22.57 | 22.44 | 16.30 | 37.00 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
|
|
18
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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