Imperial Oil Ltd. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Imperial Oil Ltd. reported Q1 2024 results, showing a decrease in related party revenues and purchases, while long-term debt to related parties remained stable.</b>

AI Summary

IMPERIAL OIL LTD (IMO) filed a Quarterly Report (10-Q) with the SEC on April 29, 2024. Revenues from related parties totaled $2,729 million for Q1 2024, down from $3,136 million in Q1 2023. Purchases of crude oil and products from related parties were $985 million in Q1 2024, down from $1,078 million in Q1 2023. Accounts receivable from related parties decreased to $696 million as of March 31, 2024, from $1,048 million as of December 31, 2023. Long-term debt to related parties remained stable at $3,447 million as of March 31, 2024, and December 31, 2023. Number of common shares authorized remained at 1,100 million, and outstanding shares were 536 million as of March 31, 2024.

Why It Matters

For investors and stakeholders tracking IMPERIAL OIL LTD, this filing contains several important signals. The decrease in related party transactions could indicate shifts in operational dependencies or strategic realignments with affiliated entities. Stable long-term debt to related parties suggests continued financial reliance or established financing structures with these entities.

Risk Assessment

Risk Level: low — IMPERIAL OIL LTD shows low risk based on this filing. The filing primarily details financial relationships and balances with related parties, with no significant new risks or material adverse changes reported.

Analyst Insight

Monitor future filings for trends in related party transactions and their impact on Imperial Oil's financial performance and operational strategy.

Key Numbers

• 2,729 — Revenues from related parties (Q1 2024)
• 3,136 — Revenues from related parties (Q1 2023)
• 985 — Purchases from related parties (Q1 2024)
• 1,078 — Purchases from related parties (Q1 2023)
• 696 — Accounts receivable - net from related parties (March 31, 2024)
• 1,048 — Accounts receivable - net from related parties (December 31, 2023)
• 3,447 — Long-term debt to related parties (March 31, 2024)
• 1,100 — Common shares authorized (millions) (March 31, 2024)

Key Players & Entities

• IMPERIAL OIL LTD (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-04-29 (date) — Filed as of date
• 2,729 (dollar_amount) — Revenues from related parties in Q1 2024
• 3,136 (dollar_amount) — Revenues from related parties in Q1 2023
• 985 (dollar_amount) — Purchases of crude oil and products from related parties in Q1 2024
• 1,078 (dollar_amount) — Purchases of crude oil and products from related parties in Q1 2023
• 3,447 (dollar_amount) — Long-term debt to related parties

FAQ

Key Dates

• 2024-03-31: Quarter End — Period covered by the 10-Q filing

Key Financial Figures

• $100 million — orate total earnings impact of at least $100 million in a given quarter. The net income (los
• $16.23 — erage bitumen realizations increased by $16.23 per barrel, primarily driven by higher
• $8.94 — tic crude oil realizations decreased by $8.94 per barrel, due to a weaker Synthetic/W
• $2.1 billion — ed to an income tax catch-up payment of $2.1 billion in the prior year. Cash flows used in

Filing Documents

• imo-20240331.htm (10-Q) — 708KB
• imoex31110-q2024q1.htm (EX-31.1) — 10KB
• imoex31210-q2024q1.htm (EX-31.2) — 11KB
• imoex32110-q2024q1.htm (EX-32.1) — 6KB
• imoex32210-q2024q1.htm (EX-32.2) — 6KB
• imo-20240331_g1.jpg (GRAPHIC) — 29KB
• imo-20240331_g2.jpg (GRAPHIC) — 25KB
• imo-20240331_g3.jpg (GRAPHIC) — 24KB
• 0000049938-24-000021.txt (&nbsp;) — 4782KB
• imo-20240331.xsd (EX-101.SCH) — 35KB
• imo-20240331_cal.xml (EX-101.CAL) — 57KB
• imo-20240331_def.xml (EX-101.DEF) — 89KB
• imo-20240331_lab.xml (EX-101.LAB) — 386KB
• imo-20240331_pre.xml (EX-101.PRE) — 265KB
• imo-20240331_htm.xml (XML) — 747KB

FINANCIAL INFORMATION 3

PART I. FINANCIAL INFORMATION 3

Financial statements 3

Item 1. Financial statements 3 Consolidated statement of income 3 Consolidated statement of comprehensive income 4 Consolidated balance sheet 5 Consolidated statement of shareholders' equity 6 Consolidated statement of cash flows 7

Notes to consolidated financial statements 8

Notes to consolidated financial statements 8

Management's discussion and analysis of financial condition and results of operations 17

Item 2. Management's discussion and analysis of financial condition and results of operations 17

Quantitative and qualitative disclosures about market risk 22

Item 3. Quantitative and qualitative disclosures about market risk 22

Controls and procedures 22

Item 4. Controls and procedures 22

OTHER INFORMATION 23

PART II. OTHER INFORMATION 23

Legal proceedings 23

Item 1. Legal proceedings 23

Unregistered sales of equity securities and use of proceeds 23

Item 2. Unregistered sales of equity securities and use of proceeds 23

Other information 23

Item 5. Other information 23

Exhibits 24

Item 6. Exhibits 24 SIGNATURES 25 In this report, all dollar amounts are expressed in Canadian dollars unless otherwise stated. This report should be read in conjunction with the company's annual report on Form 10-K for the year ended December 31, 2023. Note that numbers may not add due to rounding. The term "project" as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports. In this report, unless the context otherwise indicates, reference to "the company" or "Imperial" includes Imperial Oil Limited and its subsidiaries. 2 IMPERIAL OIL LIMITED

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial statements

Item 1. Financial statements Consolidated statement of income (U.S. GAAP, unaudited) Three Months to March 31 millions of Canadian dollars 2024 2023 Revenues and other income Revenues (a) 12,249 12,057 Investment and other income (note 3) 34 64 Total revenues and other income 12,283 12,121 Expenses Exploration 1 1 Purchases of crude oil and products (b) 7,706 7,478 Production and manufacturing (c) 1,664 1,756 Selling and general (c) 246 186 Federal excise tax and fuel charge 591 529 Depreciation and depletion 490 490 Non-service pension and postretirement benefit 1 20 Financing (d) (note 5) 12 16 Total expenses 10,711 10,476 Income (loss) before income taxes 1,572 1,645 Income taxes 377 397 Net income (loss) 1,195 1,248 Per share information (Canadian dollars) Net income (loss) per common share - basic (note 9) 2.23 2.14 Net income (loss) per common share - diluted (note 9) 2.23 2.13 (a) Amounts from related parties included in revenues. 2,729 3,136 (b) Amounts to related parties included in purchases of crude oil and products. 985 1,078 (c) Amounts to related parties included in production and manufacturing, and selling and general expenses. 150 135 (d) Amounts to related parties included in financing. 44 39 The information in the notes to consolidated financial statements is an integral part of these statements. 3 IMPERIAL OIL LIMITED Consolidated statement of comprehensive income (U.S. GAAP, unaudited) Three Months to March 31 millions of Canadian dollars 2024 2023 Net income (loss) 1,195 1,248 Other comprehensive income (loss), net of income taxes Postretirement benefits liability adjustment (excluding amortization) 4 21 Amortization of postretirement benefits liability adjustment included in net benefit costs 12 10 Total other comprehensive income (loss) 16 31 Comprehensive income (loss) 1,211 1,279 The information in the notes to consolidated financial statements is an integral part of these

Notes to consolidated financial statements (unaudited)

Notes to consolidated financial statements (unaudited) 1. Basis of financial statement preparation These unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) and follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual consolidated financial statements filed with the U.S. Securities and Exchange Commission (SEC) in the company's 2023 annual report on Form 10-K. In the opinion of the company, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature. The company's exploration and production activities are accounted for under the "successful efforts" method. The results for the three months ended March 31, 2024, are not necessarily indicative of the operations to be expected for the full year. All amounts are in Canadian dollars unless otherwise indicated. 8 IMPERIAL OIL LIMITED 2. Business segments Three Months to March 31 Upstream Downstream Chemical millions of Canadian dollars 2024 2023 2024 2023 2024 2023 Revenues and other income Revenues (a) (b) 42 76 11,879 11,639 328 342 Intersegment sales 4,122 3,622 1,748 1,823 90 91 Investment and other income (note 3) 4 2 12 20 1 — 4,168 3,700 13,639 13,482 419 433 Expenses Exploration 1 1 — — — — Purchases of crude oil and products 1,813 1,543 11,591 11,196 260 274 Production and manufacturing 1,188 1,287 421 411 53 58 Selling and general — — 162 157 26 26 Federal excise tax and fuel charge — — 590 528 1 1 Depreciation and depletion 432 434 45 45 4 4 Non-service pension and postretirement benefit — — — — — — Financing (note 5) 1 — — — — — Total expenses 3,435 3,265 12,809 12,337 344 363 Income (loss) before income taxes 733 435 830 1,145 75 70 Income tax expense (benefit)

Management's discussion and analysis of financial condition and results of operations

Item 2. Management's discussion and analysis of financial condition and results of operations Non-GAAP financial measures and other specified financial measures Certain measures included in this document are not prescribed by U.S. Generally Accepted Accounting Principles (GAAP). These measures constitute "non-GAAP financial measures" under Securities and Exchange Commission Regulation G and Item 10(e) of Regulation S-K, and "specified financial measures" under National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure of the Canadian Securities Administrators. Reconciliation of these non-GAAP financial measures to the most comparable GAAP measure, and other information required by these regulations, have been provided. Non-GAAP financial measures and specified financial measures are not standardized financial measures under GAAP and do not have a standardized definition. As such, these measures may not be directly comparable to measures presented by other companies, and should not be considered a substitute for GAAP financial measures. Net income (loss) excluding identified items Net income (loss) excluding identified items is a non-GAAP financial measure that is total net income (loss) excluding individually significant non-operational events with an absolute corporate total earnings impact of at least $100 million in a given quarter. The net income (loss) impact of an identified item for an individual segment in a given quarter may be less than $100 million when the item impacts several segments or several periods. The most directly comparable financial measure that is disclosed in the financial statements is "Net income (loss)" within the company's Consolidated statement of income. Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing significant non-operational events from business results. The company believes this view provides investors increased transparency

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