Business
Imperial Oil announces estimated second-quarter financial and operating results
Imperial Oil announces estimated second-quarter financial and operating results
About this update from Imperial Oil Limited
[{"type":"text","content":"\n\n\n\n Jul. 29, 2010 (Canada NewsWire Group) -- \n \n \n CALGARY, July 29 /CNW/ -\n\n\n >\n\n\nBruce March, chairman, president and chief executive officer of Imperial Oil, commented:\n"Imperial Oil delivered solid results with earnings of $517 million or $0.60 per share, up from $209 million in the second quarter of 2009, an increase of 147 percent. Earnings increased with stronger crude oil realizations, increased production, lower operating costs and improved downstream margins. These factors were partially offset by unfavourable foreign exchange effects of a stronger Canadian dollar. Strong operating performance in all business segments allowed us to take advantage of higher crude oil realizations in the Upstream and improved margins in petroleum product markets.\nEarnings for the first six months of 2010 were $993 million or $1.16 per share, up from $498 million in the first six months of 2009, an increase of 99 percent.\nWith our strong balance sheet; cash flow from operations; minimal debt; and long-term disciplined approach, we are well positioned to add value to our shareholders through our company growth projects. Capital and exploration expenditures continued at a record pace and were $881 million in the second quarter, relating primarily to the Kearl oil sands project and continued exploration of promising shale gas acreage in Horn River.\nWe also announced an increase to the quarterly dividend paid to shareholders, which represents the fifteenth consecutive increase in Imperial's annual per share dividend payments."\n\n\n >\n\nSecond quarter 2010 vs. second quarter 2009\n\nThe company's net income for the second quarter of 2010 was $517 million or $0.60 a share on a diluted basis, compared with $209 million or $0.25 a share for the same period last year. Net income for the first six months of 2010 was $993 million or $1.16 a share on a diluted basis, versus $498 million or $0.58 a share for the first half of 2009.\nEarnings in the second quarter were higher than the same quarter in 2009 with improvements in all operating segments. Earnings increased primarily due to the impacts of higher crude oil prices of about $150 million, higher Syncrude volumes of about $150 million, lower refinery and Syncrude maintenance of about $85 million and improved downstream margins of about $40 million. These factors were...