Item 1. Financial Statements
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.
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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.
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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.
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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.
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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.
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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.
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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
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(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.
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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
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(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.
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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.
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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).
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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
)
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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.
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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
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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
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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.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.