Imperial Oil (IMO) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw record upstream production, strong downstream performance, and robust cash flow, despite significant planned maintenance and softening crack spreads.

• Net income for Q2 2024 was $1,133 million, up from $675 million in Q2 2023, with diluted EPS of $2.11 versus $1.15 year-over-year.

• No production impacts from Western Canada wildfires; situation remains closely monitored.

• Upstream production averaged 404,000 oil equivalent barrels/day, the highest second quarter in over 30 years when adjusted for divestments.

• Refinery capacity utilization was 89% amid major turnarounds; petroleum product sales averaged 470,000 barrels per day.

Financial highlights

• Net income for Q2 was CAD 1,133 million, up CAD 458 million year-over-year.

• Total revenues and other income for Q2 2024 were $13,383 million, up from $11,819 million in Q2 2023.

• Cash from operating activities (excluding working capital) was CAD 1,508 million.

• Upstream earnings reached CAD 799 million, up CAD 241 million sequentially.

• Downstream earnings were CAD 294 million, with lower margins and turnarounds impacting results.

Outlook and guidance

• Confident in meeting 2024 annual guidance, supported by strong first-half results and operational reliability.

• Guidance for full-year capital expenditures remains at CAD 1.7 billion.

• Grand Rapids Phase 1 is expected to reach 15,000 barrels/day at full rates, lowering unit cash costs and reducing GHG intensity.

• Strathcona renewable diesel project is progressing, targeting over one billion litres of annual capacity.

• Plans to accelerate share repurchases under the NCIB program, aiming to complete by year-end.