What changed in this filing

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Item 1. Financial Statements

2023-10-31 compared with 2023-08-01 · 62 added, 39 removed, 447 unchanged (18% of the section changed)

2 unchanged sentences

GAAP, unaudited)

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars 2023 2022 2023 2022

2 unchanged sentences

Investment and other income (note 3)

47 153 166 204

Total revenues and other income 13,920 15,224 37,860 45,217

30 unchanged sentences

GAAP, unaudited)

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars 2023 2022 2023 2022

9 unchanged sentences

GAAP, unaudited)

millions of Canadian dollars As at

millions of Canadian dollars 2023

Current assets

36 unchanged sentences

GAAP, unaudited)

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars 2023 2022 2023 2022

18 unchanged sentences

GAAP, unaudited)

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars 2023 2022 2023 2022

11 unchanged sentences

Accounts payable and accrued liabilities 1,314 ( 1,328 ) 1,011 1,315

All other items - net (c)

All other items - net (b)

35 ( 34 ) ( 48 ) 13

2 unchanged sentences

Additions to property, plant and equipment ( 387 ) ( 397 ) ( 1,315 ) ( 1,034 )

Proceeds from asset sales (note 3) (b)

Proceeds from asset sales (note 3)

Additional investments — ( 6 ) — ( 6 )

Loans to equity companies - net 1 7 3 9

1 unchanged sentence

Financing activities

Long-term debt - reduction (note 6)

— ( 1,000 ) — ( 1,000 )

Finance lease obligations - reduction (note 6)

9 unchanged sentences

(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.

(b) Included contributions to registered pension plans.

( 43 ) ( 41 ) ( 129 ) ( 137 )

12 unchanged sentences

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

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

The results for the nine months ended September 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

Second Quarter

Third Quarter

millions of Canadian dollars 2023 2022 2023 2022 2023 2022

25 unchanged sentences

244 309 103 64 2 2

Second Quarter

Third Quarter

Corporate and other

33 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 Second Quarter

Revenues Third Quarter

millions of Canadian dollars 2023 2022

5 unchanged sentences

IMPERIAL OIL LIMITED

Six Months to June 30

Nine Months to September 30

millions of Canadian dollars 2023 2022 2023 2022 2023 2022

25 unchanged sentences

868 764 329 201 11 5

Total assets as at June 30

Total assets as at September 30

28,356 28,099 10,912 9,972 441 482

Six Months to June 30

Nine Months to September 30

Corporate and other

27 unchanged sentences

101 32 — — 1,309 1,002

Total assets as at June 30

Total assets as at September 30

4,346 4,704 ( 469 ) ( 271 ) 43,586 42,986

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 Six Months

Revenues Nine Months

to September 30

millions of Canadian dollars 2023 2022

7 unchanged sentences

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

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars 2023 2022 2023 2022

1 unchanged sentence

Book value of asset sales 9 723 10 731

Gain (loss) on asset sales, before tax

Gain (loss) on asset sales, after tax

Gain (loss) on asset sales, before tax (a)

( 3 ) 131 19 155

Gain (loss) on asset sales, after tax (a)

( 2 ) 222 16 241

(a) The third quarter of 2022 included a gain of $ 116 million ($ 208 million, after tax) from the sale of interests in XTO Energy Canada, which included the removal of a deferred tax liability.

Employee retirement benefits

The components of net benefit cost were as follows:

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars 2023 2022 2023 2022

12 unchanged sentences

Financing costs

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars 2023 2022 2023 2022

22 unchanged sentences

In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $ 60 million (2022 - $ 14 million).

In addition to the total operating lease liability, undiscounted commitments for leases not yet commenced totalled $ 55 million (2022 - $ 14 million).

IMPERIAL OIL LIMITED

3 unchanged sentences

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

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.

At September 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

1 unchanged sentence

In addition, the company uses commodity-based contracts, including derivatives, 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”.

Commodity contracts held for trading purposes are presented in the Consolidated statement of income on a net basis in the line “Revenues” and in the Consolidated statement of cash flows in "Cash flow from (used in) operating activities".

The company does not designate derivative instruments as a hedge for hedge accounting purposes.

6 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

Third Quarter

to September 30

millions of Canadian dollars 2023 2022 2023 2022

2 unchanged sentences

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

At June 30, 2023

At September 30, 2023

millions of Canadian dollars

23 unchanged sentences

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

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.

At September 30, 2023 and December 31, 2022, the company had $ 21 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

3 unchanged sentences

Outstanding 566,667 584,153

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 most recent 12-month normal course issuer bid program came into effect June 29, 2023 under which Imperial continued its existing share purchase program.

The program enabled 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 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 advised the company that it intended to participate to maintain its ownership percentage at approximately 69.6 percent.

Imperial accelerated its share purchases under the normal course issuer bid program during the third quarter and, subsequent to the end of the third quarter, the program completed on October 19, 2023 as a result of the company purchasing the maximum allowable number of shares under the program.

The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of earnings reinvested.

On October 27, 2023, the company announced its intention to launch a substantial issuer bid pursuant to which the company will offer to purchase for cancellation up to $ 1.5 billion of its common shares.

The substantial issuer bid will be made through a modified Dutch auction, with a tender price range to be determined by the company at the time of commencement of the offer.

Shares may also be tendered by way of a proportionate tender, which will result in a shareholder maintaining their proportionate share ownership.

ExxonMobil has advised Imperial that it intends to make a proportionate tender in connection with the offer in order to maintain its proportionate share ownership at approximately 69.6 percent following completion of the offer.

Nothing in this report shall constitute an offer to purchase or a solicitation of an offer to sell any shares.

The company’s common share activities are summarized below:

8 unchanged sentences

Purchases at stated value ( 17,486 ) ( 32 )

Balance as at June 30, 2023

Balance as at September 30, 2023

566,667 1,047

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:

Second Quarter

Third Quarter

to September 30

2023 2022 2023 2022

28 unchanged sentences

Amounts reclassified from accumulated other comprehensive income 29 63

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

Balance at September 30 ( 462 ) ( 1,090 )

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

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars 2023 2022 2023 2022

4 unchanged sentences

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

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars 2023 2022 2023 2022

5 unchanged sentences

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