Imperial Oil Q3: Related Party Transactions Detailed

Ticker: IMO · Form: 10-Q · Filed: Nov 4, 2024 · CIK: 49938

Imperial Oil LTD 10-Q Filing Summary
FieldDetail
CompanyImperial Oil LTD (IMO)
Form Type10-Q
Filed DateNov 4, 2024
Risk Levelmedium
Pages16
Reading Time20 min
Sentimentneutral

Sentiment: neutral

Topics: related-party-transactions, financials, oil-and-gas

TL;DR

**Imperial Oil Q3: $3B in related party revenue, $1.2B in related party purchases. Debt $3.4B.**

AI Summary

Imperial Oil Ltd. reported its third quarter 2024 results, with revenues from related parties totaling $2,999 million and purchases of crude oil and products from related parties amounting to $1,199 million. The company had accounts receivable from related parties of $820 million and long-term debt including related parties of $3,447 million as of September 30, 2024. Common shares outstanding were 523 million.

Why It Matters

Understanding Imperial Oil's significant transactions with related parties provides insight into its operational structure and financial interdependencies, which can impact profitability and risk.

Risk Assessment

Risk Level: medium — The filing details significant related party transactions, which can introduce complexities and potential conflicts of interest that warrant careful monitoring.

Key Numbers

Key Players & Entities

FAQ

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

Revenues from related parties for the nine months ended September 30, 2024, were $8,674 million.

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

Amounts to related parties included in purchases of crude oil and products for the nine months ended September 30, 2024, were $3,022 million.

What was the balance of investments and long-term receivables from related parties as of September 30, 2024?

Investments and long-term receivables included amounts from related parties totaling $267 million as of September 30, 2024.

What was the total amount of long-term debt and capital lease obligations as of September 30, 2024?

The filing indicates long-term debt and capital lease obligations were $3,447 million as of September 30, 2024, which included amounts to related parties.

How many common shares were outstanding at the end of the third quarter of 2024?

There were 523 million common shares outstanding as of September 30, 2024.

Filing Stats: 4,926 words · 20 min read · ~16 pages · Grade level 15.5 · Accepted 2024-11-04 13:04:12

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) Third Quarter Nine Months to September 30 millions of Canadian dollars 2024 2023 2024 2023 Revenues and other income Revenues (a) 13,215 13,873 38,812 37,694 Investment and other income (note 3) 44 47 113 166 Total revenues and other income 13,259 13,920 38,925 37,860 Expenses Exploration 1 1 3 3 Purchases of crude oil and products (b) 8,734 8,748 25,296 24,082 Production and manufacturing (c) 1,517 1,666 4,870 5,207 Selling and general (c) 223 237 690 629 Federal excise tax and fuel charge 661 654 1,908 1,781 Depreciation and depletion 508 475 1,454 1,418 Non-service pension and postretirement benefit 1 20 3 60 Financing (d) (note 5) 11 19 37 51 Total expenses 11,656 11,820 34,261 33,231 Income (loss) before income taxes 1,603 2,100 4,664 4,629 Income taxes 366 499 1,099 1,105 Net income (loss) 1,237 1,601 3,565 3,524 Per share information (Canadian dollars) Net income (loss) per common share - basic (note 9) 2.33 2.77 6.67 6.05 Net income (loss) per common share - diluted (note 9) 2.33 2.76 6.66 6.04 (a) Amounts from related parties included in revenues. 2,999 3,553 8,674 10,245 (b) Amounts to related parties included in purchases of crude oil and products. 1,199 1,228 3,022 3,270 (c) Amounts to related parties included in production and manufacturing, and selling and general expenses. 121 121 406 381 (d) Amounts to related parties included in financing. 40 44 127 124 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) Third Quarter Nine Months to September 30 millions of Canadian dollars 2024 2023 2024 2023 Net income (loss) 1,237 1,601 3,565 3,524 Other comprehensive income (loss), net of income taxes Postretirement benefits liability adjustment (excluding amortization

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 nine months ended September 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 Third Quarter Upstream Downstream (d) Chemical (d) millions of Canadian dollars 2024 2023 2024 2023 2024 2023 Revenues and other income Revenues (a) (b) 24 43 12,997 13,540 194 290 Intersegment sales 4,583 4,768 1,562 1,560 60 92 Investment and other income (note 3) 2 ( 4 ) 11 12 1 — 4,609 4,807 14,570 15,112 255 382 Expenses Exploration 1 1 — — — — Purchases of crude oil and products 1,766 1,852 13,014 13,061 157 254 Production and manufacturing 1,050 1,187 423 405 36 74 Selling and general — — 170 177 22 21 Federal excise tax and fuel charge — — 660 653 1 1 Depreciation and depletion 447 418 48 46 3 2 Non-service pension and postretirement benefit — — — — — — Financing (note 5) 2 3 — — — — Total expenses 3,266 3,461 14,315 14,342 219 352 Income (loss) before income taxes 1,343 1,346 255 770 36 30 Income tax expense (be

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