Companies: 10,651     total market cap: ยฃ102.026 T
$USD๐Ÿ‡บ๐Ÿ‡ธโ‚ฌEUR๐Ÿ‡ช๐Ÿ‡บโ‚นINR๐Ÿ‡ฎ๐Ÿ‡ณ$CAD๐Ÿ‡จ๐Ÿ‡ฆ$AUD๐Ÿ‡ฆ๐Ÿ‡บ$NZD๐Ÿ‡ณ๐Ÿ‡ฟ$HKD๐Ÿ‡ญ๐Ÿ‡ฐ$SGD๐Ÿ‡ธ๐Ÿ‡ฌ
Imperial Oil
IMO
#463
Rank
ยฃ37.54 B
Marketcap
๐Ÿ‡จ๐Ÿ‡ฆ Canada
Country
ยฃ73.82
Share price
-4.22%
Change (1 day)
32.96%
Change (1 year)
๐Ÿ›ข Oil&Gas โšก Energy
Categories
Imperial Oil Limited is a Canadian company active in the exploration, production and transportation of oil and natural gas.
  1. Imperial Oil
  2. Quarterly Reports (10-Q)
  3. Financial Year FY2022 Q2

Imperial Oil - 10-Q quarterly report FY2022 Q2


Text size:
Q20000049938--12-31falseYesYesfalsefalseCAhttp://www.imperialoil.ca/20220630#LongTermDebtAndFinanceLeaseObligationshttp://www.imperialoil.ca/20220630#LongTermDebtAndFinanceLeaseObligationsIncluded contributions to registered pension plans.(46) (42) (96) (70) Income taxes (paid) refunded. (52) 27 (275 ) 28 Interest (paid), net of capitalization.(10) (14) (22) (27)Number of common shares authorized and outstanding were 1,100 million and 637 million, respectively (2021 - 1,100 million and 678 million, respectively).Accounts receivable - net included net amounts receivable from related parties of $1,888 million (2021 - $1,031 million).Long-term debt included amounts to related parties of $4,447 million (2021 - $4,447 million). Amounts from related parties included in revenues.5,175 1,405 9,134 2,913Amounts to related parties included in production and manufacturing, and selling and general expenses.116 106 234 222Amounts to related parties included in purchases of crude oil and products.1,129 666 1,779 1,181Investments and long-term receivables included amounts from related parties of $296 million (2021 - $298 million).Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are all highly liquid securities with maturity of three months or less when purchased.Includes approximately 11% related to revenue outside the scope of ASC 606 “Revenue from Contracts with Customers” for the six months ended June 30, 2022. Trade receivables in Accounts receivable – net reported on the Balance Sheet include both receivables within the scope of ASC 606 and those outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives. Credit quality and type of customer are generally similar between those revenues and receivables within the scope of ASC 606 and those outside it. Included export sales to the United States of $6,375 million (2021 - $3,113 million).Included export sales to the United States of $3,871 million (2021 - $1,544 million).Includes approximately 13% related to revenue outside the scope of ASC 606 “Revenue from Contracts with Customers” for the three months ended June 30, 2022. Trade receivables in Accounts receivable – net reported on the Balance Sheet include both receivables within the scope of ASC 606 and those outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives. Credit quality and type of customer are generally similar between those revenues and receivables within the scope of ASC 606 and those outside it. Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions and the company’s share of similar costs for equity companies. CAPEX excludes the purchase of carbon emission credits.Total recorded employee retirement benefits obligations also included $56 million in current liabilities (2021 - $56 million).Total asset retirement obligations and other environmental liabilities also included $102 million in current liabilities (2021 - $102 million).This accumulated other comprehensive income component is included in the computation of net benefit cost (note 4).Total operating lease liability also included $86 million in current liabilities (2021 - $102 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $11 million (2021 - $5 million).Amounts to related parties included in financing (note 5).13 10 17 21Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”, “Accounts receivable - net” and “Other assets, including intangibles - net”.Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities” and “Other long-term obligations”. 0000049938 2022-01-01 2022-06-30 0000049938 2022-04-01 2022-06-30 0000049938 2021-04-01 2021-06-30 0000049938 2021-01-01 2021-06-30 0000049938 2021-12-31 0000049938 2022-06-30 0000049938 2021-06-29 0000049938 2021-06-30 0000049938 2021-01-01 2021-12-31 0000049938 2021-06-29 2021-06-29 0000049938 2021-06-15 2021-06-15 0000049938 2022-05-06 2022-05-06 0000049938 2020-12-31 0000049938 2022-03-31 0000049938 2021-03-31 0000049938 us-gaap:CorporateAndOtherMember 2021-01-01 2021-06-30 0000049938 srt:ConsolidationEliminationsMember 2021-01-01 2021-06-30 0000049938 imo:UpstreamMember 2021-01-01 2021-06-30 0000049938 imo:DownstreamMember 2021-01-01 2021-06-30 0000049938 imo:ChemicalMember 2021-01-01 2021-06-30 0000049938 imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember 2021-01-01 2021-06-30 0000049938 country:US 2021-01-01 2021-06-30 0000049938 us-gaap:RetainedEarningsMember 2021-01-01 2021-06-30 0000049938 us-gaap:CommonStockMember 2021-01-01 2021-06-30 0000049938 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-06-30 0000049938 us-gaap:PensionPlansDefinedBenefitMember 2021-01-01 2021-06-30 0000049938 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2021-01-01 2021-06-30 0000049938 imo:UpstreamMember 2021-04-01 2021-06-30 0000049938 imo:DownstreamMember 2021-04-01 2021-06-30 0000049938 imo:ChemicalMember 2021-04-01 2021-06-30 0000049938 us-gaap:CorporateAndOtherMember 2021-04-01 2021-06-30 0000049938 srt:ConsolidationEliminationsMember 2021-04-01 2021-06-30 0000049938 imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember 2021-04-01 2021-06-30 0000049938 country:US 2021-04-01 2021-06-30 0000049938 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0000049938 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0000049938 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0000049938 us-gaap:PensionPlansDefinedBenefitMember 2021-04-01 2021-06-30 0000049938 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2021-04-01 2021-06-30 0000049938 us-gaap:CorporateAndOtherMember 2022-01-01 2022-06-30 0000049938 srt:ConsolidationEliminationsMember 2022-01-01 2022-06-30 0000049938 imo:UpstreamMember 2022-01-01 2022-06-30 0000049938 imo:DownstreamMember 2022-01-01 2022-06-30 0000049938 imo:ChemicalMember 2022-01-01 2022-06-30 0000049938 imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember 2022-01-01 2022-06-30 0000049938 us-gaap:CommonStockMember 2022-01-01 2022-06-30 0000049938 country:US 2022-01-01 2022-06-30 0000049938 us-gaap:RetainedEarningsMember 2022-01-01 2022-06-30 0000049938 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-06-30 0000049938 us-gaap:PensionPlansDefinedBenefitMember 2022-01-01 2022-06-30 0000049938 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2022-01-01 2022-06-30 0000049938 imo:ProductsBarrelsMember 2022-01-01 2022-06-30 0000049938 imo:CrudeBarrelsMember 2022-01-01 2022-06-30 0000049938 imo:AmendmentToLongTermLinesOfCreditMember imo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyThreeMember imo:AmendedLineOfCreditFacilityForTwoHundredAndFiftyMillionDollarsOneMember 2022-01-01 2022-06-30 0000049938 imo:AmendmentToLongTermLinesOfCreditMember imo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyFourMember imo:AmendedLineOfCreditFacilityForTwoHundredAndFiftyMillionDollarsTwoMember 2022-01-01 2022-06-30 0000049938 imo:XtoEnergyCanadaMember 2022-01-01 2022-06-30 0000049938 imo:UpstreamMember 2022-04-01 2022-06-30 0000049938 imo:DownstreamMember 2022-04-01 2022-06-30 0000049938 imo:ChemicalMember 2022-04-01 2022-06-30 0000049938 us-gaap:CorporateAndOtherMember 2022-04-01 2022-06-30 0000049938 srt:ConsolidationEliminationsMember 2022-04-01 2022-06-30 0000049938 imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember 2022-04-01 2022-06-30 0000049938 country:US 2022-04-01 2022-06-30 0000049938 us-gaap:RetainedEarningsMember 2022-04-01 2022-06-30 0000049938 us-gaap:CommonStockMember 2022-04-01 2022-06-30 0000049938 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-04-01 2022-06-30 0000049938 us-gaap:PensionPlansDefinedBenefitMember 2022-04-01 2022-06-30 0000049938 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2022-04-01 2022-06-30 0000049938 imo:InvestmentsAndLongTermReceivablesMember 2021-12-31 0000049938 imo:NoncurrentLiabilitiesMember 2021-12-31 0000049938 imo:MasterNettingArrangementsMember 2021-12-31 0000049938 imo:NetCarryingValueMember 2021-12-31 0000049938 imo:DerivativeFairValueOfDerivativeAmountEffectOfCollateralNettingMember 2021-12-31 0000049938 imo:DerivativeFairValueOfDerivativeAmountEffectOfCounterPartyNettingMember 2021-12-31 0000049938 us-gaap:FairValueInputsLevel3Member 2021-12-31 0000049938 us-gaap:FairValueInputsLevel2Member 2021-12-31 0000049938 us-gaap:FairValueInputsLevel1Member 2021-12-31 0000049938 us-gaap:AccountsPayableAndAccruedLiabilitiesMember 2021-12-31 0000049938 imo:InvestmentsAndLongTermReceivablesMember 2022-06-30 0000049938 imo:NoncurrentLiabilitiesMember 2022-06-30 0000049938 imo:UpstreamMember 2022-06-30 0000049938 imo:DownstreamMember 2022-06-30 0000049938 imo:ChemicalMember 2022-06-30 0000049938 us-gaap:CorporateAndOtherMember 2022-06-30 0000049938 srt:ConsolidationEliminationsMember 2022-06-30 0000049938 imo:MasterNettingArrangementsMember 2022-06-30 0000049938 imo:NetCarryingValueMember 2022-06-30 0000049938 imo:DerivativeFairValueOfDerivativeAmountEffectOfCollateralNettingMember 2022-06-30 0000049938 imo:DerivativeFairValueOfDerivativeAmountEffectOfCounterPartyNettingMember 2022-06-30 0000049938 us-gaap:FairValueInputsLevel3Member 2022-06-30 0000049938 us-gaap:FairValueInputsLevel2Member 2022-06-30 0000049938 us-gaap:FairValueInputsLevel1Member 2022-06-30 0000049938 us-gaap:AccountsPayableAndAccruedLiabilitiesMember 2022-06-30 0000049938 imo:AmendmentToLongTermLinesOfCreditMember imo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyThreeMember 2022-06-30 0000049938 imo:AmendmentToLongTermLinesOfCreditMember imo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyThreeMember imo:AmendedLineOfCreditFacilityForTwoHundredAndFiftyMillionDollarsOneMember 2022-06-30 0000049938 imo:AmendmentToLongTermLinesOfCreditMember imo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyFourMember imo:AmendedLineOfCreditFacilityForTwoHundredAndFiftyMillionDollarsTwoMember 2022-06-30 0000049938 imo:AmendmentToLongTermLinesOfCreditMember 2022-06-30 0000049938 imo:WhiteCapIncMember imo:XtoEnergyCanadaMember imo:ExxonMobilCanadaMember 2022-06-30 0000049938 imo:CompaniesShareMember imo:XtoEnergyCanadaMember imo:WhiteCapIncMember 2022-06-30 0000049938 imo:XtoEnergyCanadaMember imo:ExxonMobilCanadaMember 2022-06-30 0000049938 imo:UpstreamMember 2021-06-30 0000049938 imo:DownstreamMember 2021-06-30 0000049938 imo:ChemicalMember 2021-06-30 0000049938 us-gaap:CorporateAndOtherMember 2021-06-30 0000049938 srt:ConsolidationEliminationsMember 2021-06-30 0000049938 us-gaap:CommonStockMember 2021-01-01 2021-12-31 0000049938 imo:ProductsBarrelsMember 2021-01-01 2021-12-31 0000049938 imo:CrudeBarrelsMember 2021-01-01 2021-12-31 0000049938 imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember imo:ExonnMobileCorporationMember 2021-06-29 0000049938 imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember imo:ExonnMobileCorporationMember 2022-06-15 0000049938 imo:XtoEnergyCanadaMember imo:WhiteCapIncMember srt:ScenarioForecastMember imo:CompaniesShareMember 2022-07-01 2022-09-30 0000049938 imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember 2022-06-29 0000049938 imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember 2022-06-29 2022-06-29 0000049938 imo:ExonnMobileCorporationMember imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember 2022-06-29 2022-06-29 0000049938 imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember 2022-06-15 2022-06-15 0000049938 imo:ExonnMobileCorporationMember imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember 2022-06-15 2022-06-15 0000049938 imo:ExonnMobileCorporationMember imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember 2022-05-02 0000049938 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0000049938 us-gaap:RetainedEarningsMember 2020-12-31 0000049938 us-gaap:CommonStockMember 2020-12-31 0000049938 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0000049938 us-gaap:RetainedEarningsMember 2021-06-30 0000049938 us-gaap:CommonStockMember 2021-06-30 0000049938 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0000049938 us-gaap:RetainedEarningsMember 2021-03-31 0000049938 us-gaap:CommonStockMember 2021-03-31 0000049938 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0000049938 us-gaap:RetainedEarningsMember 2021-12-31 0000049938 us-gaap:CommonStockMember 2021-12-31 0000049938 us-gaap:CommonStockMember 2022-06-30 0000049938 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-06-30 0000049938 us-gaap:RetainedEarningsMember 2022-06-30 0000049938 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-03-31 0000049938 us-gaap:RetainedEarningsMember 2022-03-31 0000049938 us-gaap:CommonStockMember 2022-03-31 iso4217:CAD xbrli:shares xbrli:pure utr:bbl utr:Month iso4217:USD iso4217:CAD xbrli:shares
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
10-Q
☑
    
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
OR
☐
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
                    
to
                    
Commission file number
0-12014
IMPERIAL OIL LIMITED
(Exact name of registrant as specified in its charter)
CANADA
  
98-0017682
(State or other jurisdiction
  (I.R.S. Employer
of incorporation or organization)
  Identification No.)      
505 Quarry Park Boulevard S.E. Calgary, Alberta, Canada
  
T2C 5N1
(Address of principal executive offices)
  (Postal Code)
1-800-567-3776
(Registrant’s telephone number, including area code)
 
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 Trading symbol 
Name of each exchange on
which registered
None
 
 
 None
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
  YES  
   
✓
   
   NO    
        
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T

(§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
  YES  
   
✓
    
  NO    
        
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule
12b-2
of the Exchange Act of 1934.
 
  
Large accelerated file
r
 
    
✓
   
  
Smaller reporting company
 
        
  Non-accelerated filer
 
        
  
Emerging growth company
 
        
  Accelerated filer
 
        
   
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.    
            
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act of 1934).
  YES  
          
  NO  
   
✓
   
The number of common shares outstanding, as of June 30, 2022 was 636,676,182.
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
Table of contents
 
  
 
Page
 
PART I. FINANCIAL INFORMATION
   3 
Item 1. Financial statements   3 
Consolidated statement of income
   3 
Consolidated statement of comprehensive income
   4 
Consolidated balance sheet
   5 
Consolidated statement of shareholders’ equity
   6 
Consolidated statement of cash flows
   7 
Notes to the consolidated financial statements
   8 
Item 2. Management’s discussion and analysis of financial condition and results of operations   20 
Item 3. Quantitative and qualitative disclosures about market risk   28 
Item 4. Controls and procedures   28 
PART II. OTHER INFORMATION   29 
Item 1. Legal proceedings   29 
Item 2. Unregistered sales of equity securities and use of proceeds   29 
Item 6. Exhibits   30 
SIGNATURES
   31 
 
 
In this report all dollar amounts are expressed in Canadian dollars unless otherwise stated. This report should be read in conjunction with the company’s annual report on Form
10-K
for the year ended December 31, 2021. Note that numbers may not add due to rounding.
The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.
In this report, unless the context otherwise indicates, reference to “the company” or “Imperial” includes Imperial Oil Limited and its subsidiaries.
 
2
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
PART I. FINANCIAL INFORMATION
Item 1. Financial statements
 Consolidated statement of income (U.S. GAAP, unaudited)
 
  
 
 
    
    Six Months
 
 
  
    Second Quarter
 
    
    to June 30
 
millions of Canadian dollars
  
2022
 
  
      2021
 
    
2022
 
  
2021
 
Revenues and other income
  
  
    
  
Revenues
(a)
  
 
17,285
 
  8,007   
 
29,942
 
  14,999 
Investment and other income
(note 3)
  
 
22
 
    40   
 
51
 
  46 
Total revenues and other income
  
 
17,307
 
     8,047   
 
29,993
 
     15,045 
     
Expenses
                        
Exploration
  
 
1
 
     2   
 
3
 
     4 
Purchases of crude oil and products
(b)
  
 
11,021
 
   4,867   
 
19,371
 
   8,754 
Production and manufacturing
(c)
  
 
1,908
 
   1,569   
 
3,567
 
     3,054 
Selling and general
(c)
  
 
191
 
    200   
 
416
 
     389 
Federal excise tax and fuel charge
  
 
553
 
     465   
 
1,032
 
     869 
Depreciation and depletion
  
 
451
 
    450   
 
877
 
     944 
Non-service
pension and postretirement benefit
  
 
5
 
  10   
 
9
 
    21 
Financing
(d) (note 5)
  
 
11
 
  13   
 
18
 
    27 
Total expenses
  
 
14,141
 
     7,576   
 
25,293
 
    14,062 
     
Income (loss) before income taxes
  
 
3,166
 
    471   
 
4,700
 
    983 
     
Income taxes
  
 
757
 
   105   
 
1,118
 
     225 
     
Net income (loss)
  
 
2,409
 
   366   
 
3,582
 
     758 
    
Per share information
(Canadian dollars)
 
                   
Net income (loss) per common share - basic
(note 9)
  
 
3.63
 
   0.51   
 
5.37
 
    1.04 
Net income (loss) per common share - diluted
(note 9)
  
 
3.63
 
    0.50   
 
5.36
 
     1.04 
(a)  Amounts from related parties included in revenues.
  
 
5,175
 
     1,405   
 
9,134
 
    2,913 
(b)  Amounts to related parties included in purchases of crude oil and products.
  
 
1,129
 
   666   
 
1,779
 
    1,181 
(c)   Amounts to related parties included in production and manufacturing, and selling and general expenses.
  
 
116
 
   106   
 
234
 
  222 
(d)  Amounts to related parties included in financing (note 5).
  
 
13
 
     10   
 
17
 
  21 
The information in the notes to consolidated financial statements is an integral part of these statements.
 
3
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
 Consolidated statement of comprehensive income (U.S. GAAP, unaudited)
 
 
 
  
 
 
    
Six Months
 
 
  
Second Quarter
 
    
to June 30
 
millions of Canadian dollars
  
 
2022
 
  
 
2021
 
    
 
2022
 
  
 
2021
 
Net income (loss)
  
 
2,409
 
     366   
 
3,582
 
   758 
     
Other comprehensive income (loss), net of income taxes
                      
Postretirement benefits liability adjustment (excluding amortization)
  
 
-
 
     -   
 
24
 
    54 
     
Amortization of postretirement benefits liability adjustment included in net benefit costs
  
 
21
 
     33   
 
42
 
   66 
Total other comprehensive income (loss)
  
 
21
 
     33   
 
66
 
     120 
                         
Comprehensive income (loss)
  
 
2,430
 
     399   
 
3,648
 
   878 
The information in the notes to consolidated financial statements is an integral part of these statements.
 
4
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
 Consolidated balance sheet (U.S. GAAP, unaudited)
  
 
As at
 
    
 
As at
 
  
 
June 30
 
    
 
Dec 31
 
millions of Canadian dollars
  
 
2022
 
    
 
2021
 
Assets
  
    
Current assets
  
    
Cash
  
 
2,867
 
     2,153 
Accounts receivable - net
(a)
  
 
6,839
 
     3,869 
Inventories of crude oil and products
  
 
1,394
 
     1,102 
Materials, supplies and prepaid expenses
  
 
789
 
     689 
Total current assets
  
 
11,889
 
     7,813 
Investments and long-term receivables
(b)
  
 
754
 
     757 
Property, plant and equipment,
  
 
57,222
 
     56,762 
less accumulated depreciation and depletion
  
 
(26,256
) 
     (25,522) 
Property, plant and equipment, net
(note 11)
  
 
30,966
 
     31,240 
Goodwill
  
 
166
 
     166 
Other assets, including intangibles - net
  
 
1,117
 
     806 
Total assets
  
 
44,892
 
     40,782 
   
Liabilities
            
Current liabilities
            
Notes and loans payable
  
 
122
 
     122 
Accounts payable and accrued liabilities
(a) (note 7)
  
 
7,947
 
     5,184 
Income taxes payable
  
 
2,018
 
     248 
Total current liabilities
  
 
10,087
 
     5,554 
Long-term debt
(c) (note 6)
  
 
5,044
 
     5,054 
Other long-term obligations
(note 7)
  
 
3,453
 
     3,897 
Deferred income tax liabilities
  
 
4,329
 
     4,542 
Total liabilities
  
 
22,913
 
     19,047 
   
Shareholders’ equity
            
Common shares at stated value
(d) (note 9)
  
 
1,177
 
     1,252 
Earnings reinvested
  
 
21,913
 
     21,660 
Accumulated other comprehensive income (loss)
(note 10)
  
 
(1,111
) 
     (1,177) 
Total shareholders’ equity
  
 
21,979
 
     21,735 
   
Total liabilities and shareholders’ equity
  
 
44,892
 
     40,782 
(a)
Accounts receivable - net included net amounts receivable from related parties of $1,888 million (2021 - $1,031 million).
(b)
Investments and long-term receivables included amounts from related parties of $296 million (2021 - $298 million).
(c)
Long-term debt included amounts to related parties of $4,447 million (2021 - $4,447 million).
(d)
Number of common shares authorized and outstanding were 1,100 million and 637 million, respectively (2021 - 1,100 million and 678 million, respectively).
The information in the notes to consolidated financial statements is an integral part of these statements.
 
5
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
 Consolidated statement of shareholders’ equity (U.S. GAAP, unaudited)
        
        
        
        
  
    
 
Six Months
 
  
 
Second Quarter
 
    
 
to June 30
 
millions of Canadian dollars
  
 
2022
 
 
 
2021
 
    
 
2022
 
 
 
2021
 
Common shares at stated value
(note 9)
  
 
    
 
At beginning of period
  
 
1,237
  
  1,357  
 
1,252
  
  1,357 
Share purchases at stated value
  
 
(60
) 
  (55)  
 
(75
) 
  (55) 
At end of period
  
 
1,177
 
  1,302  
 
1,177
 
  1,302 
     
Earnings reinvested
                 
At beginning of period
  
 
22,171
 
  22,281  
 
21,660
 
  22,050 
Net income (loss) for the period
  
 
2,409
 
  366  
 
3,582
 
  758 
Share purchases in excess of stated value
  
 
(2,440
) 
  (1,116)  
 
(2,874
) 
  (1,116) 
Dividends declared
  
 
(227
) 
  (195)  
 
(455
) 
  (356) 
At end of period
  
 
21,913
 
  21,336  
 
21,913
 
  21,336 
     
Accumulated other comprehensive income (loss)
(note 10)
                 
At beginning of period
  
 
(1,132
) 
  (1,902)  
 
(1,177
) 
  (1,989) 
Other comprehensive income (loss)
  
 
21
 
  33  
 
66
 
  120 
At end of period
  
 
(1,111
) 
  (1,869)  
 
(1,111
) 
  (1,869) 
     
Shareholders’ equity at end of period
  
 
21,979
 
  20,769  
 
21,979
 
  20,769 
The information in the notes to consolidated financial statements is an integral part of these statements.
 
6
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
 Consolidated statement of cash flows (U.S. GAAP, unaudited)
   
    
   
    
   
    
   
    
 
   
 
  
   
    
 
Six Months
 
Inflow (outflow)
  
 
Second Quarter
 
    
 
to June 30
 
millions of Canadian dollars
  
 
2022
 
 
 
2021
 
    
 
2022
 
 
 
2021
 
Operating activities
  
   
 
   
    
   
 
   
Net income (loss)
  
 
2,409
 
   366  
 
3,582
 
   758 
Adjustments for
non-cash
items:
                   
Depreciation and depletion
  
 
451
 
   450  
 
877
 
   944 
(Gain) loss on asset sales
(note 3)
  
 
(4
) 
   (24)  
 
(24
) 
   (27) 
Deferred income taxes and other
  
 
(149
) 
   76  
 
(480
) 
   136 
Changes in operating assets and liabilities:
                   
Accounts receivable
  
 
(1,426
) 
   (775)  
 
(2,970
) 
   (1,244) 
Inventories, materials, supplies and prepaid expenses
  
 
(27
) 
   58  
 
(391
) 
   (101) 
Income taxes payable
  
 
853
 
   21  
 
1,312
 
   42 
Accounts payable and accrued liabilities
  
 
499
 
   655  
 
2,643
 
   1,239 
All other items - net
(c)
  
 
76
 
   25  
 
47
 
   150 
Cash flows from (used in) operating activities
  
 
2,682
 
   852  
 
4,596
 
   1,897 
     
Investing activities
                   
Additions to property, plant and equipment
  
 
(333
) 
   (241)  
 
(637
) 
   (408) 
Proceeds from asset sales
(note 3) (b)
  
 
102
 
   35  
 
126
 
   42 
Loans to equity companies - net
  
 
1
 
   (1)  
 
2
 
   12 
Cash flows from (used in) investing activities
  
 
(230
) 
   (207)  
 
(509
) 
   (354) 
     
Financing activities
                   
Short-term debt - net
  
 
-
 
   -  
 
-
 
   (36) 
Reduction in finance lease obligations
(note 6)
  
 
(6
) 
   (4)  
 
(11
) 
   (8) 
Dividends paid
  
 
(228
) 
   (161)  
 
(413
) 
   (323) 
Common shares purchased
(note 9)
  
 
(2,500
) 
   (1,171)  
 
(2,949
) 
   (1,171) 
Cash flows from (used in) financing activities
  
 
(2,734
) 
   (1,336)  
 
(3,373
) 
   (1,538) 
     
Increase (decrease) in cash
  
 
(282
) 
   (691)  
 
714
 
   5 
Cash at beginning of period
  
 
3,149
 
   1,467  
 
2,153
 
   771 
Cash at end of period
(a)
  
 
2,867
 
   776  
 
2,867
 
   776 
(a)  Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are all highly liquid securities with maturity of three months or less when purchased.
   
         
(b)  Included $94 million deposit for the potential sale of XTO Energy Canada (note 11).
                   
(c)   Included contributions to registered pension plans.
  
 
(46
) 
   (42)  
 
(96
) 
   (70) 
     
Income taxes (paid) refunded.
  
 
(52
) 
   27  
 
(275
) 
   28 
Interest (paid), net of capitalization.
  
 
(10
) 
   (14)  
 
(22
) 
   (27) 
The information in the notes to consolidated financial statements is an integral part of these statements.
 
7
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
Notes to consolidated financial statements (unaudited)
 
1.
Basis of financial statement preparation
These unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) and follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual consolidated financial statements filed with the U.S. Securities and Exchange Commission (SEC) in the company’s 2021 annual report on Form
10-K.
In the opinion of the company, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature.
The company’s exploration and production activities are accounted for under the “successful efforts” method.
The results for the six months ended June 30, 2022, are not necessarily indicative of the operations to be expected for the full year.
All amounts are in Canadian dollars unless otherwise indicated.
 
8
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
2.
Business segments
 
   
             
   
             
   
             
   
             
   
             
   
             
 
Second Quarter
  
 
      Upstream
 
 
 
     Downstream
 
 
 
     Chemical
 
millions of Canadian dollars
  
 
2022
 
 
 
2021
 
 
 
2022
 
 
 
2021
 
 
 
2022
 
  
 
2021
 
Revenues and other income
  
   
 
   
 
   
 
   
 
   
  
   
Revenues
(a) (b)
  
 
119
 
   2,616   
 
16,752
 
   5,015   
 
414
 
   376 
Intersegment sales
  
 
5,827
 
   1,312   
 
2,024
 
   788   
 
149
 
   79 
Investment and other income
(note 3)
  
 
3
 
   6   
 
9
 
   28   
 
-
 
   1 
 
  
 
5,949
 
   3,934   
 
18,785
 
   5,831   
 
563
 
   456 
Expenses
                              
Exploration
  
 
1
 
   2   
 
-
 
   -   
 
-
 
   - 
Purchases of crude oil and products
  
 
2,357
 
   2,044   
 
16,261
 
   4,760   
 
401
 
   240 
Production and manufacturing
  
 
1,423
 
   1,166   
 
418
 
   357   
 
67
 
   46 
Selling and general
  
 
-
 
   -   
 
153
 
   142   
 
22
 
   22 
Federal excise tax and fuel charge
  
 
-
 
   -   
 
553
 
   465   
 
-
 
   - 
Depreciation and depletion
  
 
395
 
   399   
 
45
 
   39   
 
4
 
   5 
Non-service
pension and postretirement benefit
  
 
-
 
   -   
 
-
 
   -   
 
-
 
   - 
Financing
(note 5)
  
 
1
 
   -   
 
-
 
   -   
 
-
 
   - 
Total expenses
  
 
4,177
 
   3,611   
 
17,430
 
   5,763   
 
494
 
   313 
Income (loss) before income taxes
  
 
1,772
 
   323   
 
1,355
 
   68   
 
69
 
   143 
Income tax expense (benefit)
  
 
426
 
   76   
 
322
 
   8   
 
16
 
   34 
Net income (loss)
  
 
1,346
 
   247   
 
1,033
 
   60   
 
53
 
   109 
Cash flows from (used in) operating activities
  
 
2,087
 
   595   
 
641
 
   136   
 
64
 
   111 
Capital and exploration expenditures
(c)
  
 
233
 
   130   
 
69
 
   120   
 
2
 
   2 
   
            
   
            
   
            
   
            
   
            
   
            
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Second Quarter
   
Corporate and other
   
    Eliminations
   
    Consolidated
 
millions of Canadian dollars
  
 
2022
 
  2021  
 
2022
 
  2021  
 
2022
 
   2021 
Revenues and other income
                          
Revenues
(a) (b)
  
 
-
 
  -  
 
-
 
  -  
 
17,285
 
   8,007 
Intersegment sales
  
 
-
 
  -  
 
(8,000
) 
  (2,179)  
 
-
 
   - 
Investment and other income
(note 3)
  
 
10
 
  5  
 
-
 
  -  
 
22
 
   40 
 
  
 
10
 
  5  
 
(8,000
) 
  (2,179)  
 
17,307
 
   8,047 
Expenses
                          
Exploration
  
 
-
 
  -  
 
-
 
  -  
 
1
 
   2 
Purchases of crude oil and products
  
 
-
 
  -  
 
(7,998
) 
  (2,177)  
 
11,021
 
   4,867 
Production and manufacturing
  
 
-
 
  -  
 
-
 
  -  
 
1,908
 
   1,569 
Selling and general
  
 
18
 
  38  
 
(2
) 
  (2)  
 
191
 
   200 
Federal excise tax and fuel charge
  
 
-
 
  -  
 
-
 
  -  
 
553
 
   465 
Depreciation and depletion
  
 
7
 
  7  
 
-
 
  -  
 
451
 
   450 
Non-service pension and postretirement benefit
  
 
5
 
  10  
 
-
 
  -  
 
5
 
   10 
Financing
(note 5)
  
 
10
 
  13  
 
-
 
  -  
 
11
    13 
Total expenses
  
 
40
 
  68  
 
(8,000
) 
  (2,179)  
 
14,141
 
  7,576 
Income (loss) before income taxes
  
 
(30
) 
  (63)  
 
-
 
  -  
 
3,166
 
   471 
Income tax expense (benefit)
  
 
(7
) 
  (13)  
 
-
 
  -  
 
757
 
   105 
Net income (loss)
  
 
(23
) 
  (50)  
 
-
 
  -  
 
2,409
 
   366 
Cash flows from (used in) operating activities
  
 
(110
) 
  10  
 
-
 
  -  
 
2,682
 
   852 
Capital and exploration expenditures
(c)
  
 
10
 
  7  
 
-
 
  -  
 
314
 
   259 
 
9
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
(a)
Included export sales to the United States of $3,871 million (2021 - $1,544 million).
(b)
Includes approximately 13% related to revenue outside the scope of ASC 606 “Revenue from Contracts with Customers” for the three months ended June 30, 2022. Trade receivables in Accounts receivable – net reported on the Balance Sheet include both receivables within the scope of ASC 606 and those outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives
. Credit
quality and type of customer are generally similar
between
those revenues and receivables within the scope of ASC 606
 and those outside it
.
(c)
Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions and the company’s share of similar costs for equity companies. CAPEX excludes the purchase of carbon emission credits.
 
10
Table of Contents
IMPERIAL OIL
LIMITED
 
 
 
   
             
   
             
   
             
   
             
   
             
   
             
 
Six Months to June 30
  
 
      Upstream
 
  
 
     Downstream
 
  
 
     Chemical
 
millions of Canadian dollars
  
 
2022
 
 
 
2021
 
  
 
2022
 
 
 
2021
 
  
 
2022
 
  
 
2021
 
Revenues and other income
  
   
 
   
  
   
 
   
  
   
  
   
Revenues
(a) (b)
  
 
218
 
   4,758   
 
28,943
 
   9,542   
 
781
 
   699 
Intersegment sales
  
 
10,258
 
   2,663   
 
3,857
 
   1,561   
 
253
 
   132 
Investment and other income
(note 3)
  
 
7
 
   6   
 
30
 
   33   
 
-
 
   1 
 
  
 
10,483
 
   7,427   
 
32,830
 
   11,136   
 
1,034
 
   832 
Expenses
                              
Exploration
  
 
3
 
   4   
 
-
 
   -   
 
-
 
   - 
Purchases of crude oil and products
  
 
4,247
 
   3,878   
 
28,773
 
   8,780   
 
716
 
   449 
Production and manufacturing
  
 
2,672
 
   2,275   
 
774
 
   683   
 
121
 
   96 
Selling and general
  
 
-
 
   -   
 
300
 
   275   
 
45
 
   47 
Federal excise tax and fuel charge
  
 
-
 
   -   
 
1,032
 
   869   
 
-
 
   - 
Depreciation and depletion
  
 
768
 
   844   
 
86
 
   78   
 
9
 
   9 
Non-service pension and postretirement benefit
  
 
-
 
   -   
 
-
 
   -   
 
-
 
   - 
Financing
(note 5)
  
 
1
 
   1   
 
-
 
   -   
 
-
 
   - 
Total expenses
  
 
7,691
 
   7,002   
 
30,965
 
   10,685   
 
891
 
   601 
Income (loss) before income taxes
  
 
2,792
 
   425   
 
1,865
 
   451   
 
143
 
   231 
Income tax expense (benefit)
  
 
664
 
   99   
 
443
 
   99   
 
34
 
   55 
Net income (loss)
  
 
2,128
 
   326   
 
1,422
 
   352   
 
109
 
   176 
Cash flows from (used in) operating activities
  
 
3,534
 
   1,126   
 
1,016
 
   598   
 
131
 
   173 
Capital and exploration expenditures
(c)
  
 
455
 
   215   
 
137
 
   188   
 
3
 
   4 
Total assets as at June 30
(note 11)
  
 
28,961
 
   31,931   
 
11,649
 
   5,352   
 
505
 
   481 
   
   
   
   
   
   
   
   
   
   
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months to June 30
  
 
Corporate and other
 
  
 
    Eliminations
 
  
 
    Consolidated
 
millions of Canadian dollars
 
 
2022
 
 
 
2021
 
    
 
2022
 
 
 
2021
 
    
 
2022
 
 
 
2021
 
Revenues and other income
 
   
 
   
    
   
 
   
    
   
 
   
Revenues
(a) (b)
  
 
-
 
  -  
 
-
 
  -  
 
29,942
 
   14,999 
Intersegment sales
  
 
-
 
  -  
 
(14,368
) 
  (4,356)  
 
-
 
   - 
Investment and other income
(note 3)
  
 
14
 
  6  
 
-
 
  -  
 
51
 
   46 
 
  
 
14
 
  6  
 
(14,368
) 
  (4,356)  
 
29,993
 
   15,045 
Expenses
                          
Exploration
  
 
-
 
  -  
 
-
 
  -  
 
3
 
   4 
Purchases of crude oil and products
  
 
-
 
  -  
 
(14,365
) 
  (4,353)  
 
19,371
 
   8,754 
Production and manufacturing
  
 
-
 
  -  
 
-
 
  -  
 
3,567
 
   3,054 
Selling and general
  
 
74
 
  70  
 
(3
) 
  (3)  
 
416
 
   389 
Federal excise tax and fuel charge
  
 
-
 
  -  
 
-
 
  -  
 
1,032
 
   869 
Depreciation and depletion
  
 
14
 
  13  
 
-
 
  -  
 
877
 
   944 
Non-service pension and postretirement benefit
  
 
9
 
  21  
 
-
 
  -  
 
9
 
   21 
Financing
(note 5)
  
 
17
 
  26  
 
-
 
  -  
 
18
 
   27 
Total expenses
  
 
114
 
  130  
 
(14,368
) 
  (4,356)  
 
25,293
 
   14,062 
Income (loss) before income taxes
  
 
(100
) 
  (124)  
 
-
 
  -  
 
4,700
 
   983 
Income tax expense (benefit)
  
 
(23
) 
  (28)  
 
-
 
  -  
 
1,118
 
   225 
Net income (loss)
  
 
(77
) 
  (96)  
 
-
 
  -  
 
3,582
 
   758 
Cash flows from (used in) operating activities
  
 
(85
) 
  -  
 
-
 
  -  
 
4,596
 
   1,897 
Capital and exploration expenditures
(c)
  
 
15
 
  15  
 
-
 
  -  
 
610
 
   422 
Total assets as at June 30
(note 11)

  
 
4,016
 
  1,606  
 
(239
) 
  (431)  
 
44,892
 
   38,939 
 
11
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
(a)
Included export sales to the United States of $6,375 million (2021 - $3,113 million).
(b)
Includes approximately 11% related to revenue outside the scope of ASC 606 “Revenue from Contracts with Customers” for the six months ended June 30, 2022. Trade receivables in Accounts receivable – net reported on the Balance Sheet include both receivables within the scope of ASC 606 and those outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives
. Credit
quality and type of customer are generally similar
between
those revenues and receivables within the scope of ASC 606
 and those outside it
.
(c)
Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions and the company’s share of similar costs for equity companies. CAPEX excludes the purchase of carbon emission credits.
 
12
Table of Contents
IMPERIAL OIL LIMITED

 
 
3.
Investment and other income
Investment and other income included gains and losses on asset sales as follows:
 
            
            
            
            
 
  
    Second Quarter
 
    
Six Months
to June 30
 
 millions of Canadian dollars
  
2022
 
 
2021
 
    
2022
 
 
2021
 
Proceeds from asset sales
  
 
8
 
     35     
 
32
 
     42 
Book value of asset sales
  
 
4
 
     11     
 
8
 
     15 
Gain (loss) on asset sales, before tax
  
 
4
 
     24     
 
24
 
     27 
Gain (loss) on asset sales, after tax
  
 
3
 
     22     
 
19
 
     24 
 
4.
  Employee retirement benefits
The components of net benefit cost were as follows:
            
            
            
            
 
  
    Second Quarter
 
    
Six Months
to June 30
 
 millions of Canadian dollars
  
2022
 
 
2021
 
    
2022
 
 
2021
 
Pension benefits:
  
 
    
 
Service cost
  
 
70
 
     81     
 
140
 
     162 
Interest cost
  
 
74
 
     68     
 
147
 
     136 
Expected return on plan assets
  
 
(103)
 
     (107)     
 
(206)
 
     (214) 
Amortization of prior service cost
  
 
4
 
     4     
 
8
 
     8 
Amortization of actuarial loss (gain)
  
 
21
 
     36     
 
43
 
     72 
Net benefit cost
  
 
66
 
     82     
 
132
 
     164 
     
Other postretirement benefits:
                          
Service cost
  
 
5
 
     7     
 
11
 
     14 
Interest cost
  
 
6
 
     5     
 
12
 
     11 
Amortization of actuarial loss (gain)
  
 
3
 
     4     
 
5
 
     8 
Net benefit cost
  
 
14
 
     16     
 
28
 
     33 
 
5.
  Financing costs
 
            
            
            
            
 
  
    Second Quarter
 
    
Six Months
to June 30
 
 millions of Canadian dollars
  
2022
 
 
2021
 
    
2022
 
 
2021
 
Debt-related interest
  
 
20
 
     20     
 
32
 
     41 
Capitalized interest
  
 
(10)
 
     (7)     
 
(15)
      (15) 
Net interest expense
  
 
10
 
     13     
 
17
 
     26 
Other interest
  
 
1
 
     -     
 
1
 
     1 
Total financing
  
 
11
 
     13     
 
18
 
     27 
 
In June 2022, the company reduced its existing $500 million committed long-term line of credit to $250 million and extended the maturity date to June 30, 2023. The company also extended one of its $250 million committed long-term lines of credit to June 30, 2024. The company has not drawn on any of its outstanding $750 million of available credit facilities.
 
13
Table of Contents
 
IMPERIAL OIL LIMITED
 
 
 
6.
Long-term debt
 
 
 
 
 
 
 
 
 
   As at
June 30		     As at
Dec 31		 
  millions of Canadian dollars
  
2022
     2021 
 Long-term debt
  
 
4,447
 
     4,447 
 Finance leases
 
 
 
597
 
 
 
607
 
 Total long-term debt
  
 
5,044
 
     5,054 
 
7.
Other long-term obligations
 
 
 
 
 
 
 
 
 
   As at
June 30		     As at
Dec 31		 
  millions of Canadian dollars
  
2022
     2021 
 Employee retirement benefits
(a)
  
 
1,323
 
     1,362 
 Asset retirement obligations and other environmental liabilities
(b)
  
 
1,733
 
     1,713 
 Share-based incentive compensation liabilities
  
 
119
 
     79 
 Operating lease liability
(c)
  
 
122
 
     147 
 Other obligations
  
 
156
 
     596 
 Total other long-term obligations
  
 
3,453
 
     3,897 
(a)
Total recorded employee retirement benefits obligations also included $56 million in current liabilities (2021 - $56 million).
(b)
Total asset retirement obligations and other environmental liabilities also included $102 million in current liabilities (2021 - $102 million).
(c)
Total operating lease liability also included $86 million in current liabilities (2021 - $102 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $11 million (2021 - $5 million).
 
14
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
8.
Financial and derivative instruments
Financial instruments
The fair value of the company’s financial instruments is determined by reference to various market data and other appropriate valuation techniques. There are no material differences between the fair value of the company’s financial instruments and the recorded carrying value. At June 30, 2022 and December 31, 2021, the fair value of long-term debt ($4,447 million, excluding finance lease obligations) was primarily a level 2 measurement.
Derivative instruments
The company’s size, strong capital structure and the complementary nature of the Upstream, Downstream and Chemical businesses reduce the company’s enterprise-wide risk from changes in commodity prices and currency exchange rates. In addition, the company uses commodity-based contracts, including derivative instruments to manage commodity price risk and to generate returns from trading. Commodity contracts held for trading purposes are presented in the Consolidated statement of income on a net basis in the line “Revenues”. The company does not designate derivative instruments as a hedge for hedge accounting purposes.
Credit risk associated with the company’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The company maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.
The net notional long/(short) position of derivative instruments was:
 
 
 
 
 
 
 
 
 
 
   As at
June 30		   As at
Dec 31		 
 thousands of barrels
  
2022
   2021 
Crude
  
 
8,680
 
   7,390 
Products
  
 
(930
) 
   (560) 
Realized and unrealized gain or (loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a
before-tax
basis:
 
 
 
Second Quarter
 
 
    
 
  
Six Months
to June 30
 
 millions of Canadian dollars
 
2022
 
 
2021
 
 
  
 
  
2022
 
  
2021
 
Revenues
  
 
(51
) 
  (9) 
 
 
 
 
 
 
(14
) 
  (9) 
Purchases of crude oil and products
  
 
-
 
  (19) 
 
 
 
 
 
 
-
 
      (33) 
Total
  
 
(51
) 
  (28) 
 
 
 
 
 
 
(14
) 
  (42) 
 
15
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement is as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 At June 30, 2022
 millions of Canadian dollars
   Fair value   Effect of  Effect of  Net 
                   counterparty  collateral  carrying 
    Level 1   Level 2   Level 3   Total   netting  netting  value 
 Assets
 
                            
Derivative assets
(a)
  
 
35
 
  
 
25
 
  
 
-
 
  
 
60
 
  
 
(44
) 
 
 
(3
) 
 
 
13
 
       
 Liabilities
 
                            
Derivative liabilities
(b)
  
 
32
 
  
 
47
 
  
 
-
 
  
 
79
 
  
 
(44
) 
 
 
-
 
 
 
35
 
(a)
Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”, “Accounts receivable - net” and “Other assets, including intangibles - net”.
(b)
Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities” and “Other long-term obligations”.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 At December 31, 2021
 
 millions of Canadian dollars
 
   Fair value   Effect of  Effect of  Net 
                   counterparty  collateral  carrying 
    Level 1   Level 2   Level 3   Total   netting  netting  value 
 Assets
                                 
Derivative assets
(a)
   24    17    -    41    (31)   -   10 
        
 Liabilities
                                 
Derivative liabilities
(b)
   31    12    -    43    (31)   (7)   5 
 (a)
Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”, “Accounts receivable - net” and “Other assets, including intangibles - net”.
 (b)
Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities” and “Other long-term obligations”.
At June 30, 2022 and December 31, 2021, the company had $16 million and $6 million, respectively, of collateral under a master netting arrangement not offset against the derivatives on the Consolidated balance sheet in “Accounts receivable - net”, primarily related to initial margin requirements.
 
16
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
9.
Common shares
 
  
        As of
 
    
        As of
 
 
  
June 30
 
    
Dec 31
 
 thousands of shares
  
2022
 
 
    
2021
 
 
 
 
 
 
 
 
 
 
Authorized
  
 
1,100,000
 
 
 
   1,100,000 
Common shares outstanding
  
 
636,676
 
 
   678,080 
The
12-month
normal course issuer bid program that was in place during the first quarter of 2022 came into effect June 29, 2021. The program enabled the company to purchase up to a maximum of 35,583,671 common shares (5 percent of the total shares on June 15, 2021), which included shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. As in the past, Exxon Mobil Corporation participated to maintain its ownership percentage at approximately 69.6 percent. The program completed on January 31, 2022 as a result of the company purchasing the maximum allowable number of shares under the program.
The current
12-month
normal course issuer bid program came into effect June 29, 2022 under which Imperial will continue its existing share purchase program. The program enables the company to purchase up to a maximum of 31,833,809 common shares (5 percent of the total shares on June 15, 2022) which includes shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. As in the past, Exxon Mobil Corporation has advised the company that it intends to participate to maintain its ownership percentage at approximately 69.6 percent. Imperial plans to accelerate its share purchases under the normal course issuer bid program and anticipates repurchasing all remaining allowable shares by the end of October 2022. Purchase plans may be modified at any time without prior notice.
On May 6, 2022, the company commenced a substantial issuer bid pursuant to which it offered to purchase for cancellation up to $2.5 billion of its common shares through a modified Dutch auction and proportionate tender offer. The substantial issuer bid was completed on June 15, 2022, with the company taking up and paying for 32,467,532 common shares at a price of $77.00 per share, for an aggregate purchase of $2.5 billion and 4.9 percent of Imperial’s issued and outstanding shares as the close of business on May 2, 2022. This included 22,597,379 shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent.
The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of earnings reinvested.
The company’s common share activities are summarized below:
  
  
 Thousands of
shares
 
 
Millions of
dollars
 
Balance as at December 31, 2020
   734,077   1,357 
Issued under employee share-based awards
   7   - 
Purchases at stated value
   (56,004)   (105) 
Balance as at December 31, 2021
   678,080   1,252 
Issued under employee share-based awards
   -   - 
Purchases at stated value
   (41,404)   (75) 
Balance as at June 30, 2022
  
 
636,676
 
 
 
1,177
 
 
17
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
The following table provides the calculation of basic and diluted earnings per common share and the dividends declared by the company on its outstanding common shares:
 
 
 
   
    
 
Six Months
 
 
 
 
Second Quarter
 
    
 
to June 30
 
 
 
 
2022
 
 
 
2021
 
    
 
2022
 
 
 
2021
 
Net income (loss) per common share - basic
 
   
 
   
    
   
 
   
Net income (loss)
(millions of Canadian dollars)
  
 
2,409
 
   366   
 
3,582
 
   758 
Weighted average number of common shares outstanding
(millions of shares)
  
 
663.0
 
   724.1   
 
666.7
 
   729.1 
Net income (loss) per common share
(dollars)
  
 
3.63
 
   0.51   
 
5.37
 
   1.04 
Net income (loss) per common share - diluted
                    
Net income (loss)
(millions of Canadian dollars)
  
 
2,409
 
   366   
 
3,582
 
   758 
Weighted average number of common shares outstanding
(millions of shares)
  
 
663.0
 
   724.1   
 
666.7
 
   729.1 
Effect of employee share-based awards
(millions of shares)
  
 
1.4
 
   1.7   
 
1.4
 
   1.7 
Weighted average number of common shares outstanding, assuming dilution
(millions of shares)
  
 
664.4
 
   725.8   
 
668.1
 
   730.8  
Net income (loss) per common share
(dollars)
  
 
3.63
 
   0.50   
 
5.36
 
   1.04 
Dividends per common share - declared
(dollars)
  
 
0.34
 
   0.27   
 
0.68
 
   0.49 
 
18
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
10. Other comprehensive income (loss) information

  Changes in accumulated other comprehensive income (loss):
 
millions of Canadian dollars
  
 
    2022
 

 
2021
 
Balance at January 1
  
 
(1,177
) 
    (1,989) 
Postretirement benefits liability adjustment:
            
Current period change excluding amounts reclassified from accumulated other comprehensive income
  
 
24
 
     54 
Amounts reclassified from accumulated other comprehensive income
  
 
42
 
     66 
 Balance at June 30
  
 
(1,111
) 
   (1,869) 
  Amounts reclassified out of accumulated other comprehensive income (loss) -
before-tax
income (expense):
 
 
  
   
 
   
  
 
Six Months 
 
 
  
 
Second Quarter
 
  
 
to June 30 
 
millions of Canadian dollars
  
 
2022
 
 
 
2021 
 
  
 
    2022
 
  
 
2021 
 
Amortization of postretirement benefits liability adjustment included in net benefit cost
(a)
  
 
(27
) 
  (44)  
 
(55)
 
  (88)  
(a) This accumulated other comprehensive income component is included in the computation of net benefit cost (note 4).
Income tax expense (credit) for components of other comprehensive income (loss):
 
 
  
   
  
   
  
 
Six Months
 
 
  
 
Second Quarter
 
  
 
to June 30
 
millions of Canadian dollars
  
 
2022
 
  
 
2021
 
  
 
    2022
 
  
 
2021
 
Postretirement benefits liability adjustments:
  
   
  
   
  
   
  
   
Postretirement benefits liability adjustment (excluding amortization)
  
 
-
 
   -   
 
8
 
   17 
Amortization of postretirement benefits liability adjustment included in net benefit cost
  
 
6
 
   11   
 
13
 
   22 
     
Total
  
 
6
 
   11   
 
21
 
   39  
11. Divestment activities
Jointly with ExxonMobil Canada, Imperial signed an agreement in the second quarter with Whitecap Resources Inc. for the sale of its interests in XTO Energy Canada which include assets in the Montney and Duvernay areas of central Alberta, for approximately $1.9 billion ($0.9 billion Imperial’s share), subject to working capital and other adjustments. The transaction is expected to close prior to the end of the third quarter of 2022, subject to regulatory approvals. Imperial’s net assets held for sale associated with this transaction include about $0.9 billion of total assets (about $0.8 billion of property, plant and equipment) and about $0.1 billion total liabilities in the Upstream segment. The company estimates that total cash flow from the divestment will be approximately $0.9 billion, and expects to recognize a gain at closing of approximately $0.2 billion. Estimated gain and net cash flow could change due to market factors, working capital adjustments, tax impacts and closing dates.
 
19
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
Item 2.
Management’s discussion and analysis of financial condition and results of operations
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.
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 company’s 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 second quarter or
year-to-date
2022 and 2021.
 
20
Table of Contents
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 the first half of 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 and refining margins. In the first half of 2022, tightness in the oil and natural gas markets was further exacerbated by Russia’s 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. By the end of the second quarter, high prices had led to a tempering of demand for some products. Commodity and product prices are expected to remain volatile given the current global economic and geopolitical uncertainty affecting supply and demand.
Operating results
Second quarter 2022 vs. second quarter 2021
 
   Second Quarter 
millions of Canadian dollars, unless noted
  
 
2022
 
               2021  
Net income (loss) (U.S. GAAP)
  
 
2,409
 
   366  
Net income (loss) per common share, assuming dilution
(dollars)
  
 
3.63
 
   0.50  
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 $55.01 per barrel generally in line with WCS, and synthetic crude oil realizations increased by $63.87 per barrel generally in line with WTI.
Volumes – Higher volumes primarily driven by the timing of turnaround activities at Syncrude, partially offset by downtime at Kearl.
Royalty – Higher royalties primarily driven by improved commodity prices.
Other – Includes higher operating expenses of about $180 million, primarily higher energy prices, partially offset by favourable foreign exchange impacts of about $60 million.
Marker prices and average realizations
   Second Quarter 
Canadian dollars, unless noted
  
 
2022
 
   2021 
West Texas Intermediate (US$ per barrel)
  
 
108.52
 
           66.17 
Western Canada Select (US$ per barrel)
  
 
95.80
 
   54.64  
WTI/WCS Spread (US$ per barrel)
  
 
12.72
 
   11.53 
Bitumen
(per barrel)
  
 
112.27
 
   57.26 
Synthetic crude oil
(per barrel)
  
 
144.67
 
   80.80 
Average foreign exchange rate (US$)
  
 
0.78
 
   0.81 
 
21
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
Production
    Second Quarter 
thousands of barrels per day
  
 
2022
 
           2021 
Kearl
(Imperial’s share)
  
 
159
 
   181 
Cold Lake
  
 
144
 
   142 
Syncrude
(a)
  
 
81
 
   47 
           
Kearl total gross production
(thousands of barrels per day)
  
 
224
 
   255 
(a) In the second quarter of 2022, Syncrude gross production included about 2 thousand barrels per day of bitumen (2021 - rounded to 0 thousand barrels per day) that was exported to the operator’s facilities using an existing interconnect pipeline.
Lower production at Kearl was primarily a result of downtime.
Higher production at Syncrude was primarily a result of the timing of turnaround activities.
Downstream
Net income (loss) factor analysis
millions of Canadian dollars
 
Margins – Higher margins primarily reflect improved market conditions.
Other – Includes lower turnaround impacts of about $130 million, reflecting the absence of turnaround activities at Strathcona refinery, partially offset by higher operating expenses of about $70 million, primarily higher energy costs.
 
Refinery utilization and petroleum product sales
 
    Second Quarter 
thousands of barrels per day, unless noted
  
 
2022
 
             2021 
Refinery throughput
  
 
412
 
   332  
Refinery capacity utilization
(percent)
  
 
96
 
   78 
Petroleum product sales
  
 
480
 
   429 
Improved refinery throughput in the second quarter of 2022 was primarily driven by reduced turnaround activity and increased demand.
Improved petroleum product sales in the second quarter of 2022 were mainly due to increased demand.
Chemicals
Net income (loss) factor analysis
millions of Canadian dollars
 
 
22
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
Corporate and other
    Second Quarter 
millions of Canadian dollars
  
 
2022  
 
           2021  
Net income (loss) (U.S. GAAP)
  
 
    (23) 
 
        (50) 
Liquidity and capital resources
 
                               
    Second Quarter 
millions of Canadian dollars
  
 
2022
 
          2021 
Cash flow generated from (used in):
         
Operating activities
  
 
2,682
 
  852 
Investing activities
  
 
(230
) 
  (207) 
Financing activities
  
 
(2,734
) 
  (1,336) 
Increase (decrease) in cash and cash equivalents
  
 
(282
) 
  (691) 
   
Cash and cash equivalents at period end
  
 
2,867
 
  776 
Cash flow generated from operating activities primarily reflects higher Upstream realizations and improved Downstream margins.
Cash flow used in investing activities primarily reflects higher additions to property, plant and equipment.
Cash flow used in financing activities primarily reflects:
   
      
   
      
 
    Second Quarter 
millions of Canadian dollars, unless noted
  
 
2022 
 
           2021 
Dividends paid
  
 
228 
 
   161 
Per share dividend paid
(dollars)
  
 
0.34 
 
     0.22  
Share repurchases
(a)
  
 
2,500 
 
   1,171 
Number of shares purchased
(millions)
(a)
  
 
32.5 
 
   29.5 
(a) Share repurchases were made under the company’s substantial issuer bid that commenced on May 6, 2022 and expired on June 10, 2022. Includes shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent.
 
On May 6, 2022, the company commenced a substantial issuer bid pursuant to which it offered to purchase for cancellation up to $2.5 billion of its common shares through a modified Dutch auction and proportionate tender offer. The substantial issuer bid was completed on June 15, 2022, with the company taking up and paying for 32,467,532 common shares at a price of $77.00 per share, for an aggregate purchase of $2.5 billion and 4.9 percent of Imperial’s issued and outstanding shares as the close of business on May 2, 2022. This included 22,597,379 shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent.
On June 27, 2022, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid and will continue its existing share purchase program. The program enables the company to purchase up to a maximum of 31,833,809 common shares during the period June 29, 2022 to June 28, 2023. This maximum includes shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. As in the past, Exxon Mobil Corporation has advised the company that it intends to participate to maintain its ownership percentage at approximately 69.6 percent. The program will end should the company purchase the maximum allowable number of shares, or on June 28, 2023. Imperial plans to accelerate its share purchases under the normal course issuer bid program, and anticipates repurchasing all remaining allowable shares by the end of October 2022. Purchase plans may be modified at any time without prior notice.
In June 2022, the company reduced its existing $500 million committed long-term line of credit to $250 million and extended the maturity date to June 30, 2023. The company also extended one of its $250 million committed long-term lines of credit to June 30, 2024. The company has not drawn on any of its outstanding $750 million of available credit facilities.
 
23
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
Six months 2022 vs. six months 2021
 
    Six Months 
millions of Canadian dollars, unless noted
  
 
2022
 
             2021 
Net income
(loss) (U.S. GAAP)
  
 
3,582
 
   758 
Net income (loss) per common share, assuming dilution
(dollars)
  
 
5.36
 
     1.04  
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 $49.08 per barrel generally in line with WCS, and synthetic crude oil realizations increased by $58.99 per barrel generally in line with WTI.
Volumes – Lower volumes primarily driven by downtime at Kearl, partially offset by the timing of turnaround activities at Syncrude.
Royalty – Higher royalties primarily driven by improved commodity prices.
Other – Includes higher operating expenses of about $220 million, primarily higher energy prices, partially offset by favourable foreign exchange impacts of about $60 million.
Average realizations and marker prices
    Six Months 
Canadian dollars, unless noted
  
 
2022
 
             2021 
West Texas Intermediate
(US$ per barrel)
  
 
101.77
 
   62.22 
Western Canada Select
(US$ per barrel)
  
 
88.13
 
   50.14 
WTI/WCS Spread
(US$ per barrel)
  
 
13.64
 
   12.08 
Bitumen
(per barrel)
  
 
101.53
 
   52.45 
Synthetic crude oil
(per barrel)
  
 
131.41
 
   72.42 
Average foreign exchange rate
(US$)
  
 
0.79
 
   0.80 
 
24
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
Production
 
    Six Months 
thousands of barrels per day
  
 
2022
 
           2021 
Kearl
(Imperial’s share)
  
 
146
 
   180 
Cold Lake
  
 
142
 
   141 
Syncrude
(a)
  
 
79
 
   63 
           
Kearl total gross production
(thousands of barrels per day)
  
 
205
 
   253 
(a) In 2022, Syncrude gross production included about 2 thousand barrels per day of bitumen (2021 - rounded to 0 thousand barrels per day) that was exported to the operator’s facilities using an existing interconnect pipeline.
Lower production at Kearl was primarily a result of downtime.
Higher production at Syncrude was primarily a result of the timing of turnaround activities.
Downstream
Net income (loss) factor analysis
millions of Canadian dollars
 
 
Margins – Higher margins primarily reflect improved market conditions.
Other – Includes lower turnaround impacts of about $130 million, reflecting the absence of turnaround activities at Strathcona refinery, partially offset by higher operating expenses of about $90 million, primarily higher energy costs.
 
Refinery utilization and petroleum product sales
 
    Six Months 
thousands of barrels per day, unless noted
  
 
2022
 
             2021 
Refinery throughput
  
 
406
 
   348 
Refinery capacity utilization
(percent)
  
 
95
 
   81 
Petroleum product sales
  
 
464
 
   421 
Improved refinery throughput in 2022 was primarily driven by reduced turnaround activity and increased demand.
Improved petroleum product sales in 2022 primarily reflects increased demand.
Chemicals
Net income (loss) factor analysis
millions of Canadian dollars
 
 
25
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
Corporate and other
   Six Months 
millions of Canadian dollars
  
 
2022
 
           2021 
Net income (loss) (U.S. GAAP)
  
 
(77)
 
        (96) 
Liquidity and capital resources
 
   Six Months 
millions of Canadian dollars
  
 
2022
 
          2021 
Cash flow generated from (used in):
   
Operating activities
  
 
4,596
 
  1,897 
Investing activities
  
 
(509
) 
  (354) 
Financing activities
  
 
(3,373
) 
  (1,538) 
Increase (decrease) in cash and cash equivalents
  
 
714
 
  5 
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:
   Six Months 
millions of Canadian dollars, unless noted
  
 
2022
 
           2021 
Dividends paid
  
 
413
 
   323 
Per share dividend paid
(dollars)
  
 
0.61
 
     0.44  
Share repurchases
(a)
  
 
2,949
 
   1,171 
Number of shares purchased
(millions) (a)
  
 
41.4
 
   29.5 
(a) Share repurchases were made under the company’s normal course issuer bid program and substantial issuer bid that commenced on May 6, 2022 and expired on June 10, 2022. Includes shares purchased from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid, and by way of a proportionate tender under the company’s substantial issuer bid.
 
 
26
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
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 release include, but are not limited to, references to the use of derivative instruments and effectiveness of risk mitigation; purchases under the normal course issuer bid, including plans to accelerate completion by the end of October 2022; the sale of XTO Energy Canada and expected closing timing, adjustments and estimated cash flow and gain; and the expectation of commodity and product price volatility.
Forward-looking statements are based on the company’s 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; project plans, timing, costs, technical evaluations and capacities and the company’s ability to effectively execute on these plans and operate its assets; for shareholder returns, assumptions such as cash flow forecasts, financing sources and capital structure, participation of the company’s majority shareholder and the results of periodic and ongoing evaluation of alternate uses of capital; capital and environmental expenditures; that regulatory approvals related to the sale of XTO Energy Canada will be received in a timely manner and the sale will close as anticipated; the adoption and impact of new facilities or technologies on reductions to GHG emissions intensity; receipt of regulatory approvals; applicable laws and government policies, including with respect to climate change and GHG emissions reductions; progression of
COVID-19
and its impacts on Imperial’s ability to operate its assets; and commodity prices, foreign exchange rates and general market conditions could differ materially depending on a number of factors.
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; unanticipated technical or operational difficulties; operational hazards and risks; the receipt, in a timely manner, of regulatory and third-party approvals; project management and schedules and timely completion of projects; management effectiveness and disaster response preparedness, including business continuity plans in response to
COVID-19;
availability and performance of third-party service providers, including in light of restrictions related to
COVID-19;
the results of research programs and new technologies, and ability to bring new technologies to commercial scale on a cost-competitive basis; environmental risks inherent in oil and gas exploration and production activities; political or regulatory events, including changes in law or government policy such as tax laws, production curtailment and actions in response to
COVID-19;
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 management’s discussion and analysis of financial condition and results of operations of Imperial Oil Limited’s most recent annual report on Form
10-K
and subsequent interim reports.
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. Imperial’s 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.
The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.
 
27
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
Item 3. Quantitative and qualitative disclosures about market risk
Information about market risks for the six months ended June 30, 2022, does not differ materially from that discussed on page 33 of the company’s annual report on Form
10-K
for the year ended December 31, 2021 and on page 23 of the Form 10-Q for the quarter ended March 31, 2022.
Item 4.  Controls and procedures
As indicated in the certifications in Exhibit 31 of this report, the company’s principal executive officer and principal financial officer have evaluated the company’s disclosure controls and procedures as of June 30, 2022. Based on that evaluation, these officers have concluded that the company’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the company in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. There has not been any change in the company’s internal control over financial reporting during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting.
 
28
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
PART II. OTHER INFORMATION
Item 1.  Legal proceedings
Imperial has elected to use a $1 million threshold for disclosing environmental proceedings.
Item 2.  Unregistered sales of equity securities and use of proceeds
 
Issuer purchases of equity securities
 
    
Total number of
shares purchased		 
 		   

Average price paid
per share
(Canadian dollars)
 
 
 
   



Total number of
shares purchased
as part of publicly
announced plans
or programs		 
 
 
 
 		   



Maximum number
of shares that may
yet be purchased
under the plans or
programs (a) (b) (c)		 
 
 
 
 
April 2022
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
(April 1 - April 30)
        
May 2022
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
(May 1 - May 31)
        
June 2022
  
 
32,467,532
 
  
 
77.00
 
  
 
32,467,532
 
  
 
-
 
(June 1 - June 28)
        
(June 29 - June 30)
  
 
-
 
  
 
-
 
  
 
-
 
  
 
31,833,809
 
 
(a)
On June 23, 2021, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a normal course issuer bid to continue its existing share purchase program. The program enabled the company to purchase up to a maximum of 35,583,671 common shares during the period June 29, 2021 to June 28, 2022. This maximum included shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. Exxon Mobil Corporation participated to maintain its ownership percentage at approximately 69.6 percent. The program ended on January 31, 2022 as a result of the company purchasing the maximum allowable number of shares under the program.
 
(b)
On June 27, 2022, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid and will continue its existing share purchase program. The program enables the company to purchase up to a maximum of 31,833,809 common shares during the period June 29, 2022 to June 28, 2023. This maximum includes shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. As in the past, Exxon Mobil Corporation has advised the company that it intends to participate to maintain its ownership percentage at approximately 69.6 percent. The program will end should the company purchase the maximum allowable number of shares, or on June 28, 2023. Imperial plans to accelerate its share purchases under the normal course issuer bid program and anticipates repurchasing all remaining allowable shares by the end of October 2022.
 
(c)
On May 6, 2022, the company commenced a substantial issuer bid pursuant to which it offered to purchase for cancellation up to $2.5 billion of its common shares through a modified Dutch auction and proportionate tender offer. The substantial issuer bid was completed on June 15, 2022, with the company taking up and paying for 32,467,532 common shares at a price of $77.00 per share, for an aggregate purchase of $2.5 billion and 4.9 percent of Imperial’s issued and outstanding shares as the close of business on May 2, 2022. This included 22,597,379 shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent.
The company will continue to evaluate its share purchase program in the context of its overall capital activities. Purchase plans may be modified at any time without prior notice.
 
29
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
Item 6.
Exhibits
(31.1) Certification by the principal executive officer of the company pursuant to Rule
13a-14(a).
(31.2) Certification by the principal financial officer of the company pursuant to Rule
13a-14(a).
(32.1) Certification by the chief executive officer of the company pursuant to Rule
13a-14(b)
and 18 U.S.C. Section 1350.
(32.2) Certification by the chief financial officer of the company pursuant to Rule
13a-14(b)
and 18 U.S.C. Section 1350.
(101) Interactive Data Files (formatted as Inline XBRL).
(104) Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
 
30
Table of Contents
IMPERIAL OIL LIMITED
 
 
 
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 thereunto duly authorized.
 
   Imperial Oil Limited
   (Registrant)
Date:
  
August 3, 2022
 
/s/ Daniel E. Lyons
 
   (Signature)
   Daniel E. Lyons
   Senior vice-president, finance and
   administration, and controller
   (Principal accounting officer)
Date:
  
August 3, 2022
 
/s/ Cathryn Walker
 
   (Signature)
   Cathryn Walker
   Assistant corporate secretary
 
31

What is the market capitalization of a company?

The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company.
In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares.

DISCLAIMER

CompaniesMarketCap is not associated in any way with CoinMarketCap.com
Stock prices are delayed, the delay can range from a few minutes to several hours.
Company logos are from the CompaniesLogo.com logo database and belong to their respective copyright holders. Companies Marketcap displays them for editorial purposes only.

Contact

For inquiries or if you want to report a problem write to hello@8marketcap.com

Links

- Privacy policy

- Terms and conditions

© 2025 CompaniesMarketcap.com