Imperial Oil Q2: Related Party Transactions Detailed

Ticker: IMO · Form: 10-Q · Filed: Aug 5, 2024 · CIK: 49938

Imperial Oil LTD 10-Q Filing Summary
FieldDetail
CompanyImperial Oil LTD (IMO)
Form Type10-Q
Filed DateAug 5, 2024
Risk Levelmedium
Pages16
Reading Time20 min
Sentimentneutral

Sentiment: neutral

Topics: related-party-transactions, financials, debt

TL;DR

Imperial Oil Q2: Related party revenues $2.9B, purchases $838M, long-term debt $3.4B.

AI Summary

Imperial Oil Ltd. reported its second quarter 2024 results, with revenues from related parties totaling $2,946 million and purchases of crude oil and products from related parties amounting to $838 million for the period ending June 30, 2024. The company's long-term debt, which includes amounts to related parties, stood at $3,447 million. Imperial Oil has 1,100 million common shares authorized and 536 million outstanding.

Why It Matters

This filing provides insight into Imperial Oil's financial dealings with related parties, which can impact its overall financial health and operational transparency.

Risk Assessment

Risk Level: medium — The significant volume of transactions with related parties warrants attention for potential conflicts of interest or non-market terms.

Key Numbers

Key Players & Entities

FAQ

What were Imperial Oil's total revenues from related parties for the six months ended June 30, 2024?

For the six months ended June 30, 2024, Imperial Oil's revenues from related parties totaled $5,675 million.

How much did Imperial Oil purchase from related parties for the six months ended June 30, 2024?

For the six months ended June 30, 2024, Imperial Oil purchased $1,823 million of crude oil and products from related parties.

What is the amount of accounts receivable from related parties as of June 30, 2024?

As of June 30, 2024, accounts receivable from related parties amounted to $1,344 million.

What was the total amount of long-term debt for Imperial Oil as of June 30, 2024?

As of June 30, 2024, Imperial Oil's long-term debt, including amounts to related parties, was $3,447 million.

How many common shares are authorized by Imperial Oil?

Imperial Oil has authorized 1,100 million common shares.

Filing Stats: 4,936 words · 20 min read · ~16 pages · Grade level 15.5 · Accepted 2024-08-05 13:05:15

Filing Documents

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 19

Item 2. Management's discussion and analysis of financial condition and results of operations 19

Quantitative and qualitative disclosures about market risk 27

Item 3. Quantitative and qualitative disclosures about market risk 27

Controls and procedures 27

Item 4. Controls and procedures 27

OTHER INFORMATION 28

PART II. OTHER INFORMATION 28

Legal proceedings 28

Item 1. Legal proceedings 28

Unregistered sales of equity securities and use of proceeds 28

Item 2. Unregistered sales of equity securities and use of proceeds 28

Other information 28

Item 5. Other information 28

Exhibits 29

Item 6. Exhibits 29 SIGNATURES 30 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) Second Quarter Six Months to June 30 millions of Canadian dollars 2024 2023 2024 2023 Revenues and other income Revenues (a) 13,348 11,764 25,597 23,821 Investment and other income (note 3) 35 55 69 119 Total revenues and other income 13,383 11,819 25,666 23,940 Expenses Exploration 1 1 2 2 Purchases of crude oil and products (b) 8,856 7,856 16,562 15,334 Production and manufacturing (c) 1,689 1,785 3,353 3,541 Selling and general (c) 221 206 467 392 Federal excise tax and fuel charge 656 598 1,247 1,127 Depreciation and depletion 456 453 946 943 Non-service pension and postretirement benefit 1 20 2 40 Financing (d) (note 5) 14 16 26 32 Total expenses 11,894 10,935 22,605 21,411 Income (loss) before income taxes 1,489 884 3,061 2,529 Income taxes 356 209 733 606 Net income (loss) 1,133 675 2,328 1,923 Per share information (Canadian dollars) Net income (loss) per common share - basic (note 9) 2.11 1.16 4.34 3.29 Net income (loss) per common share - diluted (note 9) 2.11 1.15 4.34 3.29 (a) Amounts from related parties included in revenues. 2,946 3,556 5,675 6,692 (b) Amounts to related parties included in purchases of crude oil and products. 838 964 1,823 2,042 (c) Amounts to related parties included in production and manufacturing, and selling and general expenses. 135 125 285 260 (d) Amounts to related parties included in financing. 43 41 87 80 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) Second Quarter Six Months to June 30 millions of Canadian dollars 2024 2023 2024 2023 Net income (loss) 1,133 675 2,328 1,923 Other comprehensive income (loss), net of income taxes Postretirement benefits liability adjustment (excluding amortization) — — 4 21 Amortization of pos

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 six months ended June 30, 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 Second Quarter Upstream Downstream Chemical millions of Canadian dollars 2024 2023 2024 2023 2024 2023 Revenues and other income Revenues (a) (b) 29 61 12,986 11,355 333 348 Intersegment sales 4,522 3,519 1,639 1,365 85 89 Investment and other income (note 3) 1 10 9 15 — — 4,552 3,590 14,634 12,735 418 437 Expenses Exploration 1 1 — — — — Purchases of crude oil and products 1,900 1,432 12,944 11,133 256 263 Production and manufacturing 1,203 1,256 435 475 48 54 Selling and general — — 171 160 23 22 Federal excise tax and fuel charge — — 655 597 1 1 Depreciation and depletion 396 398 46 44 4 4 Non-service pension and postretirement benefit — — — — — — Financing (note 5) 1 — — — — — Total expenses 3,501 3,087 14,251 12,409 332 344 Income (loss) before income taxes 1,051 503 383 326 86 93 Income tax expense (benefit) 252 119 89 7

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

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