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Imperial Oil announces second-quarter financial and operating results
| Calgary, AB,
August 3, 2006
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Imperial Oil today announced net income for the second quarter of $837 million
or $0.85 a share, compared with $539 million or $0.52 a share for the same
quarter of 2005. Net income for the first six months of 2006 was $1,428
million or $1.44 a share, versus $932 million or $0.89 a share for the first
half of 2005.
Earnings in the second quarter were higher than
the same period of 2005 due mainly to higher natural resources realizations
and stronger refining margins. Earnings were also positively impacted by lower
tax expenses primarily from the impact of a one-time future income tax
adjustment based on lower federal and Alberta tax rates and lower
stock-related compensation expenses. These factors were partially offset by
higher planned refinery maintenance and capital project activities impacting
both refinery throughput and expenses and the stronger Canadian dollar.
Capital and exploration expenditures were $283 million in the second quarter,
down from $353 million during the same quarter of 2005 reflecting the
completion of projects. For the first half of 2006 the amount was $605
million, versus $678 million in the same period a year ago. During the first
half of 2006, the company repurchased about 24.1 million shares for $937
million. At June 30, 2006, the company's balance of cash and marketable
securities was $997 million, compared with $1,661 million at the end of 2005.
"Several important milestones were reached in the second quarter, including
record bitumen production at Cold Lake and the start-up of ultra-low sulphur
diesel facilities," said Tim Hearn, Imperial's chairman, president and chief
executive officer. "The focus in coming months will be on optimizing recent
investments and offsetting industry-wide cost pressures in current operations
and in future projects needed to satisfy Canada's growing energy needs," Hearn
added.
Click here to read our second quarter interim report 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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