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Imperial Oil announces second quarter financial and operating results
| Calgary, AB, August 2, 2007
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Imperial Oil today announced net income for the second quarter of 2007 of $712 million or $0.76 a share, compared with $837 million or $0.85 a share for the same period last year. Net income for the first six months of the year was $1,486 million or $1.57 a share, versus $1,428 million or $1.44 a share for the first half of 2006.
Earnings in the second quarter were lower than the same period of 2006 due mainly to the absence of the favourable effects of tax rate changes reported in the second quarter of the prior year, higher share-based compensation expenses and lower crude oil realizations. These factors were partially offset by stronger industry refining and marketing margins and favourable impacts from lower refinery maintenance and project activities.
Capital and exploration expenditures were $200 million in the second quarter, compared with $283 million during the same quarter of 2006. For the first half of 2007, the amount was $416 million, versus $605 million in the same period a year ago. During the first half of 2007, the company repurchased about 26.6 million shares for $1,191 million. At June 30, 2007, the company's balance of cash and marketable securities was $2,037 million, compared with $2,158 million at the end of 2006.
"Imperial's consistent investment approach, along with a focus on operational excellence, continues to lead to strong results,” said Tim Hearn, Imperial's chairman, president and chief executive officer. He added, "Our first priority is to fund all quality investment opportunities and then return surplus cash to shareholders. Events in the second quarter demonstrate this commitment, with our recent acquisition of additional northern acreage, an increase in our quarterly dividend and continuation of the share repurchase program."
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, is the country’s largest petroleum refiner, and has a leading market share in petroleum products sold through a coast-to-coast supply network that includes close to 2,000 service stations.
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