|  |
Imperial Oil announces third-quarter financial and operating results
| Calgary, AB,
October 31, 2006
|
Imperial Oil today announced net income for the third quarter of
$822
million or $0.84 a share, compared with $652 million or $0.64 a share for the
same quarter of 2005. Net income for the first nine months of 2006 was $2,250
million or $2.28 a share, versus
$1,584 million or $1.53 a share for
the first nine months of 2005.
Earnings in the third quarter
were higher than the same period of 2005 due mainly to higher realizations for
Cold Lake bitumen and crude oil and record production volumes at Cold Lake.
Earnings were also positively impacted by lower stock-related compensation
expenses and lower operating costs primarily from lower energy costs. These
factors were partially offset by lower natural gas realizations and lower
conventional crude oil volumes. Stronger marketing and petrochemical product
margins were essentially offset by weaker industry refining margins. A
stronger Canadian dollar also negatively impacted earnings.
Capital and exploration expenditures were $263 million in the third quarter,
down from $395 million during the same quarter of 2005. For the first nine
months of 2006, the amount was $868 million, versus $1,073 million in the same
period a year ago. During the third quarter of 2006, the company repurchased
more than 11 million shares for $468 million. At September 30, the company's
balance of cash and marketable securities was $1,857 million, compared with
$1,661 million at the end of 2005.
"Increased crude oil
production and refinery throughput allowed us to capitalize on attractive
market conditions that existed throughout much of the quarter," said Tim
Hearn, Imperial's chairman, president and chief executive officer. "Softening
commodity prices occurred towards the end of the quarter, bringing relief to
consumers. This is a cyclic business, reinforcing the importance of
maintaining a consistent investment approach and a relentless focus on cost
control, both of which are integral to Imperial's strategy," Hearn added.
Click here to read our 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.
|
| |  |
|
