What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-08-05 compared with 2024-04-29 · 128 added, 13 removed, 356 unchanged (28% of the section changed)

2 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2024 2023 2024 2023

5 unchanged sentences

Purchases of crude oil and products (b)

8,856 7,856 16,562 15,334

Production and manufacturing (c)

1,689 1,785 3,353 3,541

Selling and general (c)

221 206 467 392

Federal excise tax and fuel charge 656 598 1,247 1,127

8 unchanged sentences

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

2.11 1.16 4.34 3.29

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

2.11 1.15 4.34 3.29

(a) Amounts from related parties included in revenues.

2,946 3,556 5,675 6,692

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

838 964 1,823 2,042

and general expenses.

135 125 285 260

(d) Amounts to related parties included in financing.

3 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2024 2023 2024 2023

49 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2024 2023 2024 2023

18 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2024 2023 2024 2023

4 unchanged sentences

(Gain) loss on asset sales (note 3)

( 1 ) ( 13 ) ( 3 ) ( 22 )

Deferred income taxes and other ( 75 ) ( 15 ) ( 239 ) ( 71 )

5 unchanged sentences

All other items - net (b)

( 5 ) 36 ( 3 ) ( 83 )

Cash flows from (used in) operating activities 1,629 885 2,705 64

6 unchanged sentences

Finance lease obligations - reduction (note 6)

( 8 ) ( 6 ) ( 13 ) ( 11 )

Dividends paid ( 321 ) ( 257 ) ( 599 ) ( 523 )

4 unchanged sentences

Cash and cash equivalents at end of period (a)

2,020 2,376 2,020 2,376

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

(b) Included contributions to registered pension plans.

(b) Includes contributions to registered pension plans.

( 38 ) ( 44 ) ( 75 ) ( 86 )

12 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, 2024, are not necessarily indicative of the operations to be expected for the full year.

The results for the six months ended June 30, 2024, 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

Second Quarter

millions of Canadian dollars 2024 2023 2024 2023 2024 2023

25 unchanged sentences

267 303 149 152 3 5

Total assets as at March 31

Second Quarter

Corporate and other

millions of Canadian dollars 2024 2023 2024 2023 2024 2023

Revenues and other income

Revenues (a) (b)

— — — — 13,348 11,764

Three Months to March 31

Intersegment sales

— — ( 6,246 ) ( 4,973 ) — —

Investment and other income (note 3)

25 30 — — 35 55

25 30 ( 6,246 ) ( 4,973 ) 13,383 11,819

Exploration — — — — 1 1

Purchases of crude oil and products

— — ( 6,244 ) ( 4,972 ) 8,856 7,856

Production and manufacturing 3 — — — 1,689 1,785

Selling and general 29 25 ( 2 ) ( 1 ) 221 206

Federal excise tax and fuel charge — — — — 656 598

Depreciation and depletion 10 7 — — 456 453

Non-service pension and postretirement benefit 1 20 — — 1 20

Financing (note 5)

13 16 — — 14 16

Total expenses 56 68 ( 6,246 ) ( 4,973 ) 11,894 10,935

Income (loss) before income taxes ( 31 ) ( 38 ) — — 1,489 884

Income tax expense (benefit) ( 6 ) ( 8 ) — — 356 209

Net income (loss)

( 25 ) ( 30 ) — — 1,133 675

Cash flows from (used in) operating activities

9 29 — — 1,629 885

Capital and exploration expenditures (c)

43 33 — — 462 493

IMPERIAL OIL LIMITED

(a) Includes export sales to the United States of $ 2,632 million (2023 - $ 2,034 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 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 contracts within the scope of ASC 606 and those outside it.

Revenues Second Quarter

millions of Canadian dollars 2024 2023

Revenue from contracts with customers 10,782 10,922

Revenue outside the scope of ASC 606

Total 13,348 11,764

(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 2024 2023 2024 2023 2024 2023

Revenues and other income

Revenues (a) (b)

71 137 24,865 22,994 661 690

Intersegment sales

8,644 7,141 3,387 3,188 175 180

Investment and other income (note 3)

5 12 21 35 1 —

8,720 7,290 28,273 26,217 837 870

Exploration 2 2 — — — —

Purchases of crude oil and products

3,713 2,975 24,535 22,329 516 537

Production and manufacturing 2,391 2,543 856 886 101 112

Selling and general — — 333 317 49 48

Federal excise tax and fuel charge — — 1,245 1,125 2 2

Depreciation and depletion 828 832 91 89 8 8

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

Financing (note 5)

Total expenses 6,936 6,352 27,060 24,746 676 707

Income (loss) before income taxes 1,784 938 1,213 1,471 161 163

Income tax expense (benefit) 427 224 288 351 39 39

Net income (loss)

1,357 714 925 1,120 122 124

Cash flows from (used in) operating activities

2,053 175 391 ( 191 ) 71 23

Capital and exploration expenditures (c)

557 624 302 226 8 9

Total assets as at June 30

28,505 28,603 12,016 9,629 503 482

Six Months to June 30

Corporate and other

27 unchanged sentences

91 63 — — 958 922

Total assets as at March 31

Total assets as at June 30

3,528 3,915 ( 417 ) ( 503 ) 44,135 42,126

5 unchanged sentences

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

Revenues Three Months

Revenues Six Months

millions of Canadian dollars 2024 2023

7 unchanged sentences

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

Second Quarter

millions of Canadian dollars 2024 2023 2024 2023

5 unchanged sentences

The components of net benefit cost were as follows:

Second Quarter

millions of Canadian dollars 2024 2023 2024 2023

12 unchanged sentences

Financing costs

Second Quarter

millions of Canadian dollars 2024 2023 2024 2023

11 unchanged sentences

Total long-term debt 4,001 4,011

In June 2024, the company extended the maturity date of its existing long-term, variable-rate, Canadian dollar loan from ExxonMobil to June 30, 2035.

All other terms and conditions remain unchanged.

Other long-term obligations

15 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, 2024 and December 31, 2023, the fair value of long-term debt ($ 3,447 million, excluding finance lease obligations) was primarily a level 2 measurement.

At June 30, 2024 and December 31, 2023, 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 2024 2023 2024 2023

2 unchanged sentences

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

At March 31, 2024

At June 30, 2024

millions of Canadian dollars

23 unchanged sentences

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

At March 31, 2024 and December 31, 2023, the company had $ 33 million and $ 24 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, 2024 and December 31, 2023, the company had $ 17 million and $ 24 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 535,837 535,837

The current 12-month normal course issuer bid program came into effect June 29, 2024 under which Imperial will continue its existing share purchase program.

The program enables the company to purchase up to a maximum of 26,791,840 common shares ( 5 percent of the total shares on June 15, 2024) which includes shares purchased under the normal course issuer bid from Exxon Mobil Corporation.

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:

5 unchanged sentences

Purchases at stated value — —

Balance as at March 31, 2024

Balance as at June 30, 2024

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

2024 2023 2024 2023

Net income (loss) per common share – basic

Net income (loss) (millions of Canadian dollars)

1,133 675 2,328 1,923

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

535.8 584.2 535.8 584.2

Net income (loss) per common share (dollars)

2.11 1.16 4.34 3.29

Net income (loss) per common share – diluted

Net income (loss) (millions of Canadian dollars)

1,133 675 2,328 1,923

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

535.8 584.2 535.8 584.2

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

1.2 1.1 1.2 1.1

Weighted-average number of common shares outstanding,

assuming dilution (millions of shares)

537.0 585.3 537.0 585.3

Net income (loss) per common share (dollars)

2.11 1.15 4.34 3.29

Dividends per common share – declared (dollars)

0.60 0.50 1.20 0.94

IMPERIAL OIL LIMITED

6 unchanged sentences

Amounts reclassified from accumulated other comprehensive income 25 20

Balance at March 31 ( 661 ) ( 481 )

Balance at June 30 ( 648 ) ( 471 )

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

Second Quarter

millions of Canadian dollars 2024 2023 2024 2023

4 unchanged sentences

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

Second Quarter

millions of Canadian dollars 2024 2023 2024 2023

2 unchanged sentences

Amortization of postretirement benefits liability adjustment included in net benefit cost

Total 3 3 9 13

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