# Imperial Oil Ltd: Form 10-Q for the period ended Mar 31, 2010 - Company: [Imperial Oil Ltd](/companies/imo.md) (CIK 49938) - Form: 10-Q - Filed: 2010-05-06 - Accepted by EDGAR: May 6, 2010, 11:41 ET - Period: 2010-03-31 - Accession: 0001193125-10-110273 - Inline XBRL: yes - Main document: https://www.sec.gov/Archives/edgar/data/49938/000119312510110273/d10q.htm - All documents and exhibits: https://www.sec.gov/Archives/edgar/data/49938/000119312510110273/ ## Figures reported in this filing Standardized XBRL line items for the period ended 2010-03-31. | Line item | Period | Value | XBRL concept | | --- | --- | ---: | --- | | Selling, general and administrative | 3 months, 2010-01-01 to 2010-03-31 | CAD 250.0m | us-gaap:SellingGeneralAndAdministrativeExpense | | Interest expense | 3 months, 2010-01-01 to 2010-03-31 | CAD 1.0m | us-gaap:InterestExpense | | Income tax | 3 months, 2010-01-01 to 2010-03-31 | CAD 175.0m | us-gaap:IncomeTaxExpenseBenefit | | Net income | 3 months, 2010-01-01 to 2010-03-31 | CAD 476.0m | us-gaap:NetIncomeLoss | | Diluted EPS | 3 months, 2010-01-01 to 2010-03-31 | CAD 0.56 | us-gaap:EarningsPerShareDiluted | | Basic EPS | 3 months, 2010-01-01 to 2010-03-31 | CAD 0.56 | us-gaap:EarningsPerShareBasic | | Operating cash flow | 3 months, 2010-01-01 to 2010-03-31 | CAD 914.0m | us-gaap:NetCashProvidedByUsedInOperatingActivities | | Capital expenditure | 3 months, 2010-01-01 to 2010-03-31 | CAD 813.0m | us-gaap:PaymentsToAcquireProductiveAssets | | Dividends paid | 3 months, 2010-01-01 to 2010-03-31 | CAD 85.0m | us-gaap:PaymentsOfDividendsCommonStock | | Share repurchases | 3 months, 2010-01-01 to 2010-03-31 | CAD 0 | us-gaap:PaymentsForRepurchaseOfCommonStock | | Cash and equivalents | at 2010-03-31 | CAD 534.0m | us-gaap:CashAndCashEquivalentsAtCarryingValue | | Current assets | at 2010-03-31 | CAD 3.84bn | us-gaap:AssetsCurrent | | Total assets | at 2010-03-31 | CAD 18.34bn | us-gaap:Assets | | Current liabilities | at 2010-03-31 | CAD 4.24bn | us-gaap:LiabilitiesCurrent | | Total liabilities | at 2010-03-31 | CAD 8.39bn | us-gaap:Liabilities | | Current portion of debt | at 2010-03-31 | CAD 109.0m | us-gaap:DebtCurrent | | Shareholders' equity | at 2010-03-31 | CAD 9.94bn | us-gaap:StockholdersEquity | | Shares outstanding | at 2010-03-31 | 847,599,011 shares | dei:EntityCommonStockSharesOutstanding | ## Management's discussion and analysis As filed, 6,133 characters. ### OPERATING RESULTS The company’s net income for the first quarter of 2010 was $476 million or $0.56 a share on a diluted basis, compared with $289 million or $0.33 a share for the same period last year. Earnings in the first quarter were higher than the same quarter in 2009, as higher Upstream earnings were partially offset by lower Downstream earnings. In the Upstream, earnings increased primarily due to the impact of higher crude oil commodity prices of about $550 million, partially offset by higher royalty costs due to higher commodity prices of about $180 million and the unfavourable foreign exchange effects of a higher Canadian dollar of about $100 million. Lower Downstream earnings were primarily due to lower margins of about $125 million. ### Upstream Net income in the first quarter was $444 million, $302 million higher than the same period of 2009. Higher crude oil commodity prices in the first quarter of 2010 increased revenues, contributing to higher earnings of about $550 million. This positive earnings factor was partially offset by higher royalties due to higher commodity prices of about $180 million and the unfavourable foreign exchange effects of a higher Canadian dollar of about $100 million. The average price of Brent crude oil in U.S. dollars, a common benchmark for world oil markets, at $76.32 a barrel, in the first quarter, increased about 72 percent from the same quarter last year. The company’s average realizations on sales of Canadian conventional crude oil also increased. Prices for Canadian heavier crude oil were also higher along with the lighter crude oil. The company’s average bitumen realizations were favourably impacted by the lower spread between light and heavy crude oils in world markets, compared to the same quarter last year. Gross production of Cold Lake bitumen returned to expected levels and averaged 148 thousand barrels a day during the first quarter, unchanged from the same quarter last year. The company’s share of Syncrude’s gross production in the first quarter was 67 thousand barrels a day, slightly lower than 68 thousand barrels during the same period a year ago. Volumes in the first quarter of 2010 were impacted by the advancement of planned maintenance activities originally scheduled for later in the year. The maintenance activities were completed, and the impacted operating units returned to normal operations in the quarter. In the first quarter, gross production of conventional crude oil averaged 24 thousand barrels a day, down from 26 thousand barrels in the same period last year, due to natural reservoir decline. Gross production of natural gas during the first quarter of 2010 decreased to 273 million cubic feet a day from 307 million cubic feet in the same period last year. Lower production was primarily due to maintenance activities and natural reservoir decline. ### IMPERIAL OIL LIMITED ### MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND ### RESULTS OF OPERATIONS (continued .....) ### Downstream Net income was $39 million in the first quarter of 2010, compared with $202 million in the same period a year ago. Earnings were lower in the quarter mainly due to lower overall margins of about $125 million. Earnings were also negatively impacted by the unfavourable foreign exchange effects of a higher Canadian dollar of about $30 million and higher costs associated with planned maintenance activities in the first quarter of 2010. ### Chemical Net income was negative $1 million in the first quarter, compared with $3 million in the same quarter last year. Higher costs associated with planned maintenance activities on the Sarnia ethylene cracker in the first quarter of 2010 more than offset improvements in industry margins. ### Corporate and other Net income effects were negative $6 million in the first quarter, compared with negative $58 million in the same period of 2009. Favourable earnings effects were primarily due to lower share-based compensation charges. ### LIQUIDITY AND CAPITAL RESOURCES Cash flow generated from operating activities was $914 million during the first quarter of 2010, compared with cash flow used in operating activities of $296 million in the same period last year. Higher cash flow was primarily driven by higher earnings. Timing of scheduled income tax payments, higher payable balances due to timing of expenditures and lower seasonal inventory builds also contributed to higher cash flows. Funding contributions to the company’s registered pension plan were lower in the first quarter than the same period last year, but are expected to increase in the second quarter of 2010. Investing activities used net cash of $807 million in the first quarter, an increase of $400 million from the corresponding period in 2009. Additions to property, plant and equipment were $813 million in the first quarter, compared with $411 million during the same quarter 2009. For the Upstream segment, expenditures during the quarter were primarily for advancing the Kearl oil sands project. Other investments included development drilling at Cold Lake, exploration drilling at Horn River and environmental and other projects at Syncrude. The Downstream segment’s capital expenditures were focused mainly on refinery projects to improve reliability, feedstock flexibility, energy efficiency and air quality. During the first quarter of 2010, the company did not make any share repurchases outside of those to offset the dilutive effects from the exercise of stock options, as cash flow from operations was used to fund growth projects such as Kearl. The company will continue to evaluate its share-purchase program in the context of its overall capital activities. ### IMPERIAL OIL LIMITED ### MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND ### RESULTS OF OPERATIONS (continued .....) Cash dividends of $85 million were paid in the first quarter of 2010 compared with dividends of $86 million in the first quarter of 2009. The above factors led to an increase in the company’s balance of cash to $534 million at March 31, 2010, from $513 million at the end of 2009. ## Market risk As filed, 213 characters. Information about market risks for the three months ended March 31, 2010 does not differ materially from that discussed on pages 23 in the company’s annual report on Form 10-K for the year ended December 31, 2009. ## Controls and procedures As filed, 1,077 characters. As indicated in the certifications in Exhibit 31 of this report, the company’s principal executive officer and principal financial officer have evaluated the company’s disclosure controls and procedures as of March 31, 2010. Based on that evaluation, these officers have concluded that the company’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the company in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. There has not been any change in the company’s internal control over financial reporting during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting. Filed May 6, 2010. Source: SEC EDGAR, the filing index for accession 0001193125-10-110273. Last ingested by Listed: Nov 5, 2026, 13:58 ET. 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