What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-08-01 compared with 2023-05-02 · 138 added, 23 removed, 348 unchanged (32% of the section changed)

2 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2023 2022 2023 2022

5 unchanged sentences

Purchases of crude oil and products (b)

7,856 11,021 15,334 19,371

Production and manufacturing (c)

1,785 1,908 3,541 3,567

Selling and general (c)

206 191 392 416

Federal excise tax and fuel charge 598 553 1,127 1,032

8 unchanged sentences

Net income (loss) per common share - basic (note 9)

1.16 3.63 3.29 5.37

Net income (loss) per common share - diluted (note 9)

1.15 3.63 3.29 5.36

(a) Amounts from related parties included in revenues.

3,556 5,175 6,692 9,134

(b) Amounts to related parties included in purchases of crude oil and products.

and selling and general expenses.

(d) Amounts to related parties included in financing, (note 5).

964 1,129 2,042 1,779

125 116 260 234

(d) Amounts to related parties included in financing.

The information in the notes to consolidated financial statements is an integral part of these statements.

2 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2023 2022 2023 2022

48 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2023 2022 2023 2022

18 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2023 2022 2023 2022

4 unchanged sentences

(Gain) loss on asset sales (note 3)

( 13 ) ( 4 ) ( 22 ) ( 24 )

Deferred income taxes and other ( 15 ) ( 149 ) ( 71 ) ( 480 )

4 unchanged sentences

Accounts payable and accrued liabilities ( 48 ) 499 ( 303 ) 2,643

All other items - net (b)

All other items - net (c)

36 76 ( 83 ) 47

2 unchanged sentences

Additions to property, plant and equipment ( 499 ) ( 333 ) ( 928 ) ( 637 )

Proceeds from asset sales (note 3)

Proceeds from asset sales (note 3) (b)

Loans to equity companies - net 1 1 2 2

2 unchanged sentences

Finance lease obligations - reduction (note 6)

( 6 ) ( 6 ) ( 11 ) ( 11 )

Dividends paid ( 257 ) ( 228 ) ( 523 ) ( 413 )

Common shares purchased (note 9)

— ( 2,500 ) — ( 2,949 )

Cash flows from (used in) financing activities ( 263 ) ( 2,734 ) ( 534 ) ( 3,373 )

2 unchanged sentences

Cash and cash equivalents at end of period (a)

(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.

(b) Included contributions to registered pension plans.

2,376 2,867 2,376 2,867

(a) Cash equivalents are all highly liquid securities with maturity of three months or less.

(b) In the second quarter of 2022, a deposit of $ 94 million was received for the pending sale of XTO Energy Canada.

( 44 ) ( 46 ) ( 86 ) ( 96 )

Income taxes (paid) refunded.

11 unchanged sentences

The company’s exploration and production activities are accounted for under the “successful efforts” method.

The results for the three months ended March 31, 2023, are not necessarily indicative of the operations to be expected for the full year.

The results for the six months ended June 30, 2023, are not necessarily indicative of the operations to be expected for the full year.

All amounts are in Canadian dollars unless otherwise indicated.

1 unchanged sentence

Business segments

Three Months to March 31 Upstream

Second Quarter

millions of Canadian dollars 2023 2022 2023 2022 2023 2022

25 unchanged sentences

303 233 152 69 5 2

Total assets as at March 31

Second Quarter

Corporate and other

millions of Canadian dollars 2023 2022 2023 2022 2023 2022

Revenues and other income

Revenues (a) (b)

— — — — 11,764 17,285

Three Months to March 31

Corporate and other Eliminations

Intersegment sales

— — ( 4,973 ) ( 8,000 ) — —

Investment and other income (note 3)

30 10 — — 55 22

30 10 ( 4,973 ) ( 8,000 ) 11,819 17,307

Exploration — — — — 1 1

Purchases of crude oil and products

— — ( 4,972 ) ( 7,998 ) 7,856 11,021

Production and manufacturing — — — — 1,785 1,908

Selling and general 25 18 ( 1 ) ( 2 ) 206 191

Federal excise tax and fuel charge — — — — 598 553

Depreciation and depletion 7 7 — — 453 451

Non-service pension and postretirement benefit 20 5 — — 20 5

Financing (note 5)

16 10 — — 16 11

Total expenses 68 40 ( 4,973 ) ( 8,000 ) 10,935 14,141

Income (loss) before income taxes ( 38 ) ( 30 ) — — 884 3,166

Income tax expense (benefit) ( 8 ) ( 7 ) — — 209 757

Net income (loss)

( 30 ) ( 23 ) — — 675 2,409

Cash flows from (used in) operating activities

29 ( 110 ) — — 885 2,682

Capital and exploration expenditures (c)

33 10 — — 493 314

IMPERIAL OIL LIMITED

(a) Includes export sales to the United States of $ 2,034 million (2022 - $ 3,871 million).

(b) Revenues include both revenue within the scope of ASC 606 and outside the scope of ASC 606 .

Trade receivables in "Accounts receivable – net" reported on the Consolidated 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.

Contractual terms, credit quality, and type of customer are generally similar between those revenues and receivables within the scope of ASC 606 and those outside it.

Revenues Second Quarter

millions of Canadian dollars 2023 2022

Revenue from contracts with customers 10,922 15,871

Revenue outside the scope of ASC 606

Total 11,764 17,285

(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.

IMPERIAL OIL LIMITED

Six Months to June 30

millions of Canadian dollars 2023 2022 2023 2022 2023 2022

Revenues and other income

15 unchanged sentences

Financing (note 5)

Total expenses 6,352 7,691 24,746 30,965 707 891

Income (loss) before income taxes 938 2,792 1,471 1,865 163 143

Income tax expense (benefit) 224 664 351 443 39 34

Net income (loss)

714 2,128 1,120 1,422 124 109

Cash flows from (used in) operating activities

175 3,534 ( 191 ) 1,016 23 131

Capital and exploration expenditures (c)

624 455 226 137 9 3

Total assets as at June 30

28,603 28,961 9,629 11,649 482 505

Six Months to June 30

Corporate and other

millions of Canadian dollars 2023 2022 2023 2022 2023 2022

Revenues and other income

Revenues (a) (b)

— — — — 23,821 29,942

Intersegment sales

— — ( 10,509 ) ( 14,368 ) — —

Investment and other income (note 3)

72 14 — — 119 51

72 14 ( 10,509 ) ( 14,368 ) 23,940 29,993

Exploration — — — — 2 3

Purchases of crude oil and products

— — ( 10,507 ) ( 14,365 ) 15,334 19,371

Production and manufacturing — — — — 3,541 3,567

Selling and general 29 74 ( 2 ) ( 3 ) 392 416

Federal excise tax and fuel charge — — — — 1,127 1,032

Depreciation and depletion 14 14 — — 943 877

Non-service pension and postretirement benefit 40 9 — — 40 9

Financing (note 5)

32 17 — — 32 18

Total expenses 115 114 ( 10,509 ) ( 14,368 ) 21,411 25,293

7 unchanged sentences

63 15 — — 922 610

Total assets as at March 31

Total assets as at June 30

3,915 4,016 ( 503 ) ( 239 ) 42,126 44,892

5 unchanged sentences

Contractual terms, credit quality, and type of customer are generally similar between those revenues and receivables within the scope of ASC 606 and those outside it.

Revenues Three Months

Revenues Six Months

millions of Canadian dollars 2023 2022

7 unchanged sentences

Investment and other income included gains and losses on asset sales as follows:

Second Quarter

millions of Canadian dollars 2023 2022 2023 2022

5 unchanged sentences

The components of net benefit cost were as follows:

Second Quarter

millions of Canadian dollars 2023 2022 2023 2022

12 unchanged sentences

Financing costs

Second Quarter

millions of Canadian dollars 2023 2022 2023 2022

1 unchanged sentence

Capitalized interest

( 33 ) ( 10 ) ( 63 ) ( 15 )

Net interest expense

3 unchanged sentences

Long-term debt

millions of Canadian dollars As at

millions of Canadian dollars 2023 2022

Long-term debt

18 unchanged sentences

There are no material differences between the fair value of the company’s financial instruments and the recorded carrying value.

At March 31, 2023 and December 31, 2022, the fair value of long-term debt ($ 3,447 million, excluding finance lease obligations) was primarily a level 2 measurement.

At June 30, 2023 and December 31, 2022, the fair value of long-term debt ($ 3,447 million, excluding finance lease obligations) was primarily a level 2 measurement.

Derivative instruments

10 unchanged sentences

Realized and unrealized gain/(loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a before-tax basis:

Second Quarter

millions of Canadian dollars 2023 2022 2023 2022

1 unchanged sentence

IMPERIAL OIL LIMITED

The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement was as follows:

At March 31, 2023

The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement were as follows:

At June 30, 2023

millions of Canadian dollars

23 unchanged sentences

“Accounts payable and accrued liabilities” and “Other long-term obligations”.

At March 31, 2023 and December 31, 2022, the company had $ 9 million and $ 14 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.

At June 30, 2023 and December 31, 2022, the company had $ 8 million and $ 14 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.

IMPERIAL OIL LIMITED

2 unchanged sentences

Authorized 1,100,000 1,100,000

Common shares outstanding 584,153 584,153

Outstanding 584,153 584,153

The current 12-month normal course issuer bid program came into effect June 29, 2023 under which Imperial will continue its existing share purchase program.

The program enables the company to purchase up to a maximum of 29,207,635 common shares ( 5 percent of the total shares on June 15, 2023) 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 prior to year end.

Purchase plans may be modified at any time without prior notice.

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:

1 unchanged sentence

Balance as at December 31, 2021

678,080 1,252

Issued under employee share-based awards — —

1 unchanged sentence

Balance as at December 31, 2022

584,153 1,079

Issued under employee share-based awards — —

Purchases at stated value — —

Balance as at March 31, 2023 584,153 1,079

Balance as at June 30, 2023

584,153 1,079

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:

Second Quarter

2023 2022 2023 2022

Net income (loss) per common share – basic

Net income (loss) (millions of Canadian dollars)

675 2,409 1,923 3,582

Weighted average number of common shares outstanding (millions of shares)

584.2 663.0 584.2 666.7

Net income (loss) per common share (dollars)

1.16 3.63 3.29 5.37

Net income (loss) per common share – diluted

Net income (loss) (millions of Canadian dollars)

675 2,409 1,923 3,582

Weighted average number of common shares outstanding (millions of shares)

584.2 663.0 584.2 666.7

Effect of employee share-based awards (millions of shares)

1.1 1.4 1.1 1.4

Weighted-average number of common shares outstanding,

assuming dilution (millions of shares)

585.3 664.4 585.3 668.1

Net income (loss) per common share (dollars)

1.15 3.63 3.29 5.36

Dividends per common share – declared (dollars)

0.50 0.34 0.94 0.68

IMPERIAL OIL LIMITED

6 unchanged sentences

Amounts reclassified from accumulated other comprehensive income 20 42

Balance at March 31 ( 481 ) ( 1,132 )

Balance at June 30 ( 471 ) ( 1,111 )

Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax income (expense):

Second Quarter

millions of Canadian dollars 2023 2022 2023 2022

4 unchanged sentences

Income tax expense (credit) for components of other comprehensive income (loss):

Second Quarter

millions of Canadian dollars 2023 2022 2023 2022

2 unchanged sentences

Amortization of postretirement benefits liability adjustment included in net benefit cost

Total 3 6 13 21

IMPERIAL OIL LIMITED

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements