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Imperial Oil announces 2005 financial and operating results
| Calgary, AB,
February 2, 2006
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Imperial Oil today announced net income for 2005 of $2,600 million (or $7.59
per share). This was the highest net income in the company's history,
surpassing the previous record of $2,052 million (or $5.74 a share) in 2004.
Fourth quarter earnings were $1,016 million, (or $3.00 a share) in 2005,
compared with $538 million (or $1.53 a share) in the fourth quarter of 2004.
In 2005, higher realizations for crude oil, natural gas and Cold Lake bitumen,
and stronger refining margins contributed positively to earnings when compared
to 2004. Increased natural gas and Cold Lake volumes made a further positive
contribution. These factors were partly offset by a stronger Canadian dollar,
lower volumes at Syncrude, the natural decline of conventional crude oil
volumes, and higher planned maintenance impacting refinery operations.
Operating costs increased, primarily driven by higher energy costs and higher
Syncrude maintenance expenses. In addition, stock-related compensation
expenses were higher than a year earlier and costs associated with the head
office relocation were incurred in 2005. Included in net income in 2005 was a
gain on sale of assets, mainly from the Redwater and North Pembina fields.
Total operating revenues were $7,464 million in the fourth quarter of 2005 and
$27,797 million for the year, versus $6,142 million and $22,408 million in the
corresponding periods of 2004. Capital and exploration expenditures were $402
million in the fourth quarter and $1,475 million for the year, compared with
$418 million and $1,445 million respectively in 2004. In 2005, Imperial
repurchased more than 17.5 million shares for $1,795 million. The company's
balance of cash and marketable securities at the end of 2005 was $1,661
million, versus $1,279 million at the end of 2004.
“In
2005, solid operations coupled with a strong price environment resulted in
record earnings, allowing more than $2.1 billion to be returned to
shareholders in the form of share repurchases and dividends” said Tim Hearn,
the company’s chairman, president and chief executive officer. “It also
resulted in the best safety performance ever achieved by the company, and
improved performance in a number of environmental areas.”
“Imperial remains committed to delivering long term growth” Hearn added. “This
financial strength will enable continued funding of numerous major
investments, such as the Mackenzie Gas project; Kearl; and further development
of Cold Lake, needed to satisfy increasing energy needs.”
Click here to read our fourth quarter earnings release that includes the
news release, highlights and items of interest, management’s discussion and
analysis, and financial statements.
Imperial Oil is one of
Canada's largest corporations and a leading member of the country's petroleum
industry. It is one of Canada's largest producers of crude oil and natural gas
and is also the country's largest refiner and marketer of petroleum products,
sold primarily under the Esso and Mobil brand names through a coast-to-coast
supply network that includes close to 2,000 retail outlets.
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