# Imperial Oil Ltd: Form 10-Q for the period ended Mar 31, 2018 - Company: [Imperial Oil Ltd](/companies/imo.md) (CIK 49938) - Form: 10-Q - Filed: 2018-05-03 - Accepted by EDGAR: May 3, 2018, 13:13 ET - Period: 2018-03-31 - Accession: 0001193125-18-150341 - Inline XBRL: yes - Main document: https://www.sec.gov/Archives/edgar/data/49938/000119312518150341/d562906d10q.htm - All documents and exhibits: https://www.sec.gov/Archives/edgar/data/49938/000119312518150341/ ## Figures reported in this filing Standardized XBRL line items for the period ended 2018-03-31. | Line item | Period | Value | XBRL concept | | --- | --- | ---: | --- | | Income tax | 3 months, 2018-01-01 to 2018-03-31 | CAD 181.0m | us-gaap:IncomeTaxExpenseBenefit | | Net income | 3 months, 2018-01-01 to 2018-03-31 | CAD 516.0m | us-gaap:NetIncomeLoss | | Diluted EPS | 3 months, 2018-01-01 to 2018-03-31 | CAD 0.62 | us-gaap:EarningsPerShareDiluted | | Basic EPS | 3 months, 2018-01-01 to 2018-03-31 | CAD 0.62 | us-gaap:EarningsPerShareBasic | | Diluted shares (weighted) | 3 months, 2018-01-01 to 2018-03-31 | 831,500,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding | | Capital expenditure | 3 months, 2018-01-01 to 2018-03-31 | CAD 371.0m | us-gaap:PaymentsToAcquireProductiveAssets | | Dividends paid | 3 months, 2018-01-01 to 2018-03-31 | CAD 134.0m | us-gaap:PaymentsOfDividendsCommonStock | | Share repurchases | 3 months, 2018-01-01 to 2018-03-31 | CAD 250.0m | us-gaap:PaymentsForRepurchaseOfCommonStock | | Cash and equivalents | at 2018-03-31 | CAD 1.43bn | us-gaap:CashAndCashEquivalentsAtCarryingValue | | Current assets | at 2018-03-31 | CAD 5.43bn | us-gaap:AssetsCurrent | | Total assets | at 2018-03-31 | CAD 41.58bn | us-gaap:Assets | | Current liabilities | at 2018-03-31 | CAD 3.74bn | us-gaap:LiabilitiesCurrent | | Total liabilities | at 2018-03-31 | CAD 17.00bn | us-gaap:Liabilities | | Long-term debt | at 2018-03-31 | CAD 4.45bn | us-gaap:LongTermDebtNoncurrent | | Current portion of debt | at 2018-03-31 | CAD 202.0m | us-gaap:DebtCurrent | | Shareholders' equity | at 2018-03-31 | CAD 24.58bn | us-gaap:StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest | | Shares outstanding | at 2018-03-31 | 824,036,825 shares | dei:EntityCommonStockSharesOutstanding | ## Management's discussion and analysis As filed, 6,070 characters. ### Operating results ### First quarter 2018 vs. first quarter 2017 The company’s net income for the first quarter of 2018 was $516 million or $0.62 per share on a diluted basis, an increase of $183 million compared to the net income of $333 million or $0.39 per share, for the same period last year. Upstream recorded a net loss in the first quarter of $44 million compared to a net loss of $86 million in the same period of 2017. The results reflect the impact of higher Canadian crude oil realizations of about $90 million, partially offset by unfavourable foreign exchange effects. West Texas Intermediate (WTI) averaged US$62.89 per barrel in the first quarter of 2018, up from US$51.78 per barrel in the same quarter of 2017. Western Canada Select (WCS) averaged US$38.67 per barrel and US$37.26 per barrel respectively for the same periods. The WTI / WCS differential widened significantly to 39 percent in the first quarter of 2018, from 28 percent in the same period of 2017. The Canadian dollar averaged US$0.79 in the first quarter of 2018, an increase of US$0.03 from the first quarter of 2017. Imperial’s average Canadian dollar realizations for bitumen and synthetic crudes moved generally in line with the North American benchmarks, adjusted for changes in exchange rates and transportation costs. Bitumen realizations averaged $35.61 per barrel for the first quarter of 2018, a decrease of $0.60 per barrel versus the first quarter of 2017. Synthetic crude realizations averaged $77.26 per barrel, an increase of $9.47 per barrel for the same period of 2017. Gross production of Cold Lake bitumen averaged 153,000 barrels per day in the first quarter, compared to 158,000 barrels per day in the same period last year. Lower production was mainly due to a number of small operational constraints. Gross production of Kearl bitumen averaged 182,000 barrels per day in the first quarter (129,000 barrels Imperial’s share) unchanged from the first quarter of 2017. The company’s share of gross production from Syncrude averaged 65,000 barrels per day, compared to 66,000 barrels per day in the first quarter of 2017. Downstream net income was $521 million in the first quarter, up from $380 million in the first quarter of 2017. Earnings increased mainly due to stronger margins of about $310 million, partially offset by the absence of the $151 million gain on the sale of a surplus property in 2017. Refinery throughput averaged 408,000 barrels per day, up from 398,000 barrels per day in the first quarter of 2017. Capacity utilization increased to 96 percent. Petroleum product sales were 478,000 barrels per day, compared to 486,000 barrels per day in the first quarter of 2017. Chemical net income was $73 million in the first quarter, up from $45 million in the same quarter of 2017, primarily due to stronger margins. Corporate and other expenses were $34 million in the first quarter, compared with $6 million in the same period of 2017. As part of the implementation of the Financial Accounting Standards Board’s update, Compensation – Retirement Benefits (Topic 715): *Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost*, beginning January 1, 2018, Corporate and other includes all non-service pension and postretirement benefit expenses. Prior to 2018, the majority of these costs were allocated to the operating segments. ### Liquidity and capital resources Cash flow generated from operating activities was $985 million in the first quarter, an increase of $631 million from the corresponding period in 2017, reflecting higher earnings and working capital effects. Investing activities used net cash of $365 million in the first quarter, compared with $61 million cash generated from investing activities in the same period in 2017, reflecting higher additions to property, plant and equipment, and lower proceeds from asset sales. Cash used in financing activities was $390 million in the first quarter, compared with $134 million in the first quarter of 2017. Dividends paid in the first quarter of 2018 were $134 million. The per share dividend paid in the first quarter was $0.16, up from $0.15 in the same period of 2017. During the first quarter, the company purchased about 7.2 million shares for approximately $250 million. The company’s cash balance was $1,425 million at March 31, 2018, versus $672 million at the end of first quarter 2017. On April 27, 2018, the company announced by news release that it had received final approval from the Toronto Stock Exchange for an amendment to its normal course issuer bid to increase the number of common shares that it may purchase. Under the amendment, the number of common shares that may be purchased will increase to a maximum of 42,326,545 common shares during the period June 27, 2017 to June 26, 2018, 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. No other provisions of the normal course issuer bid have changed. ### Recently issued accounting standards Effective January 1, 2019, Imperial will adopt the Financial Accounting Standards Board’s standard, *Leases,* as amended. The standard requires all leases with an initial term greater than one year be recorded on the balance sheet as an asset and a lease liability. Imperial is gathering and evaluating data, and recently acquired a system to facilitate implementation. The company continues to progress an assessment of the magnitude of the effect on the company’s financial statements. ### Forward-looking statements Statements in this report regarding future events or conditions are forward-looking statements. Actual future financial and operating results could differ materially due to the impact of market conditions, changes in law or governmental policy, changes in operating conditions and costs, changes in project schedules, operating performance, demand for oil and gas, commercial negotiations or other technical and economic factors. ## Market risk As filed, 213 characters. Information about market risks for the three months ended March 31, 2018, does not differ materially from that discussed on page 24 of the company’s annual report on Form 10-K for the year ended December 31, 2017. ## Controls and procedures As filed, 1,078 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, 2018. 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 3, 2018. Source: SEC EDGAR, the filing index for accession 0001193125-18-150341. Last ingested by Listed: Nov 5, 2026, 13:58 ET. No prices; not investment advice.