Imperial Oil (IMO) Q3 2024 earnings summary

Executive summary

• Achieved strong operational performance across upstream and downstream, offsetting lower commodity prices sequentially from Q2 2024.

• Net income for Q3 2024 was $1,237 million, up sequentially from Q2 but down year-over-year, with record upstream production and reduced unit costs.

• Downstream earnings remained solid despite planned turnarounds and softer crack spreads; refinery capacity utilization was 90%.

• Returned $1,528 million to shareholders via $322 million in dividends and $1,206 million in accelerated share repurchases, reducing share count by 5%.

Financial highlights

• Q3 2024 net income: $1,237 million ($2.33/share diluted), down $364 million year-over-year but up $104 million sequentially.

• Cash from operating activities: $1.8 billion, up $289 million from Q2 2024; free cash flow for Q3: $1,003 million.

• Capital expenditures: $486 million in Q3, up $99 million year-over-year; YTD CapEx $1,444 million.

• Dividends paid: $322 million; $1.2 billion returned via share repurchases in Q3.

• Total revenues: $13,259 million, down from $13,920 million in Q3 2023.

Outlook and guidance

• Confident in achieving 280,000 bpd annual production at Kearl and high end of 89%-92% refinery utilization guidance.

• CapEx expected to finish modestly above prior $1.7 billion guidance, trending between $1.8 and $1.9 billion.

• Grand Rapids project expected to support long-term production growth, lower unit cash costs, and reduce GHG intensity.

• Strathcona renewable diesel facility construction continues, targeting over one billion litres annual capacity and H1 2025 startup.

• December 12th call planned for 2025 guidance; investor day in spring 2025 to outline longer-term growth and digital initiatives.