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Third quarter earnings 2001
| Toronto, ON, October 18, 2001
| Imperial Oil Limited today announced third-quarter net earnings of $259 million or 66 cents a share, compared with $374 million or 90 cents a share during the third quarter of 2000.
Nine-month net earnings were $1,055 million or $2.66 a share in 2001, compared with $928 million or $2.20 a share during the previous year.
The main reasons for reduced earnings in the third quarter of 2001 were lower prices for crude oil and natural gas, higher expenses and the absence of a gain on divestments that was recorded in the third quarter of 2000. Those factors more than offset the positive impact of increased production of Cold Lake bitumen and natural gas.
The increase in earnings for the nine-month period resulted mainly from higher average realizations on sales of natural gas, increased production of natural gas and crude oil, and stronger industry margins on sales of petroleum products. The company also benefited from a reduction in Alberta and Ontario provincial tax rates enacted in the second quarter of this year. Those positive factors were partly offset by lower bitumen prices, higher costs of purchased fuel and electricity, increased planned maintenance, higher environmental expenses and the absence of the divestment gain.
Total revenues were $4,180 million in the third quarter and
$13,715 million at the end of the first nine months of 2001, compared with $4,592 million and $12,888 million in the corresponding periods last year.
The balance of cash and marketable securities was $1,449 million on September 30, 2001, compared with $1,050 million at the same time last year. The company repurchased 9 million shares at a total cost of $379 million during the third quarter, bringing total purchases in the current year to 10.3 million shares costing $433 million.
Bob Peterson, chairman, president and chief executive officer, said: "Uncertainties in the near term economic outlook reinforce the need for Imperial to stay focused on those aspects of the business that we can control, particularly the safety and reliability of our operations. Over the longer term, we will continue to advance quality investment opportunities to further strengthen the company's financial and operating performance."
Management's discussion and analysis, special items, financial statements and notes
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