imo-20240930

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(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



Accounts receivable - net included net amounts receivable from related parties.	$	820	1,048



Investments and long-term receivables included amounts from related parties.	267	283

Long-term debt included amounts to related parties.

3,447




Number of common shares authorized (millions).	1,100	1,100
Number of common shares outstanding (millions).	523	536



(b) Includes contributions to registered pension plans.	(37)	(43)	(112)	(129)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___

Commission file number 0-12014

IMPERIAL OIL LIMITED

(Exact name of registrant as specified in its charter)


Canada						98-0017682
(State or other jurisdiction						(I.R.S. Employer
of incorporation or organization)						Identification No.)

505 Quarry Park Boulevard S.E. Calgary, Alberta, Canada						T2C 5N1
(Address of principal executive offices)						(Postal Code)

1-800-567-3776

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol

Name of each exchange on

which registered

None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act of 1934.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act of 1934). Yes ☐ No ☑

The number of common shares outstanding, as of September 30, 2024 was 523,402,540.


			IMPERIAL OIL LIMITED

Table of contents


			Page

PART I. FINANCIAL INFORMATION			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
Item 2. Management’s discussion and analysis of financial condition and results of operations			19
Item 3. Quantitative and qualitative disclosures about market risk			27
Item 4. Controls and procedures			27

PART II. OTHER INFORMATION			28
Item 1. Legal proceedings			28
Item 2. Unregistered sales of equity securities and use of proceeds			28
Item 5. Other information			28
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.


			IMPERIAL OIL LIMITED

PART I. FINANCIAL INFORMATION

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.


			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)	—	—	4	21

Amortization of postretirement benefits liability adjustment included in net benefit costs	13	9	38	29
Total other comprehensive income (loss)	13	9	42	50

Comprehensive income (loss)	1,250	1,610	3,607	3,574

The information in the notes to consolidated financial statements is an integral part of these statements.


			IMPERIAL OIL LIMITED

Consolidated balance sheet (U.S. GAAP, unaudited)


		As at Sep 30	As at Dec 31
millions of Canadian dollars		2024	2023
Assets
Current assets
Cash and cash equivalents		1,490	864
Accounts receivable - net (a)		5,524	4,482
Inventories of crude oil and products		1,415	1,944
Materials, supplies and prepaid expenses		978	1,008
Total current assets		9,407	8,298
Investments and long-term receivables (b)		1,072	1,062
Property, plant and equipment,		57,614	56,200
less accumulated depreciation and depletion		(26,789)	(25,365)
Property, plant and equipment - net		30,825	30,835
Goodwill		166	166
Other assets, including intangibles - net		1,059	838
Total assets		42,529	41,199

Liabilities
Current liabilities
Notes and loans payable		118	121
Accounts payable and accrued liabilities (a) (note 7)		6,353	6,231
Income taxes payable		45	251
Total current liabilities		6,516	6,603
Long-term debt (c) (note 6)		3,997	4,011
Other long-term obligations (note 7)		3,977	3,851
Deferred income tax liabilities		4,400	4,512
Total liabilities		18,890	18,977

Shareholders’ equity
Common shares at stated value (d) (note 9)		969	992
Earnings reinvested		23,305	21,907
Accumulated other comprehensive income (loss) (note 10)		(635)	(677)
Total shareholders’ equity		23,639	22,222

Total liabilities and shareholders’ equity		42,529	41,199
(a)	Accounts receivable - net included net amounts receivable from related parties.	820	1,048
(b)	Investments and long-term receivables included amounts from related parties.	267	283
(c)	Long-term debt included amounts to related parties.	3,447	3,447
(d)	Number of common shares authorized (millions).	1,100	1,100
	Number of common shares outstanding (millions).	523	536

The information in the notes to consolidated financial statements is an integral part of these statements.


			IMPERIAL OIL LIMITED

Consolidated statement of shareholders’ equity (U.S. GAAP, unaudited)


	Third Quarter		Nine Months to September 30
millions of Canadian dollars	2024	2023	2024	2023
Common shares at stated value (note 9)
At beginning of period	992	1,079	992	1,079
Share purchases at stated value	(23)	(32)	(23)	(32)
At end of period	969	1,047	969	1,047

Earnings reinvested
At beginning of period	23,592	23,220	21,907	21,846
Net income (loss) for the period	1,237	1,601	3,565	3,524
Share purchases in excess of stated value	(1,207)	(1,310)	(1,207)	(1,310)
Dividends declared	(317)	(288)	(960)	(837)
At end of period	23,305	23,223	23,305	23,223

Accumulated other comprehensive income (loss) (note 10)
At beginning of period	(648)	(471)	(677)	(512)
Other comprehensive income (loss)	13	9	42	50
At end of period	(635)	(462)	(635)	(462)

Shareholders’ equity at end of period	23,639	23,808	23,639	23,808

The information in the notes to consolidated financial statements is an integral part of these statements.


			IMPERIAL OIL LIMITED

Consolidated statement of cash flows (U.S. GAAP, unaudited)


	Third Quarter		Nine Months to September 30
millions of Canadian dollars	2024	2023	2024	2023
Operating activities
Net income (loss)	1,237	1,601	3,565	3,524
Adjustments for non-cash items:
Depreciation and depletion	508	475	1,454	1,418
(Gain) loss on asset sales (note 3)	(2)	3	(5)	(19)
Deferred income taxes and other	53	(168)	(186)	(239)
Changes in operating assets and liabilities:
Accounts receivable	548	(805)	(1,040)	(671)
Inventories, materials, supplies and prepaid expenses	502	(330)	552	(389)
Income taxes payable	(47)	234	(208)	(2,164)
Accounts payable and accrued liabilities	(1,313)	1,314	62	1,011
All other items - net (b)	1	35	(2)	(48)
Cash flows from (used in) operating activities	1,487	2,359	4,192	2,423

Investing activities
Additions to property, plant and equipment	(486)	(387)	(1,444)	(1,315)
Proceeds from asset sales (note 3)	—	6	7	29

Loans to equity companies - net	2	1	16	3
Cash flows from (used in) investing activities	(484)	(380)	(1,421)	(1,283)

Financing activities


Finance lease obligations - reduction (note 6)	(5)	(5)	(18)	(16)
Dividends paid	(322)	(292)	(921)	(815)
Common shares purchased (note 9)	(1,206)	(1,342)	(1,206)	(1,342)
Cash flows from (used in) financing activities	(1,533)	(1,639)	(2,145)	(2,173)

Increase (decrease) in cash and cash equivalents	(530)	340	626	(1,033)
Cash and cash equivalents at beginning of period	2,020	2,376	864	3,749
Cash and cash equivalents at end of period (a)	1,490	2,716	1,490	2,716
(a) Cash equivalents are all highly liquid securities with maturity of three months or less.
(b) Includes contributions to registered pension plans.	(37)	(43)	(112)	(129)

Income taxes (paid) refunded.	(423)	(438)	(1,557)	(3,627)
Interest (paid), net of capitalization.	(11)	(15)	(37)	(52)

The information in the notes to consolidated financial statements is an integral part of these statements.


			IMPERIAL OIL LIMITED

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.


			IMPERIAL OIL LIMITED

2. Business segments

Third Quarter

Upstream

Downstream (d)

Chemical (d)

millions of Canadian dollars

2024

2023

SEC Form 10-Q filed by Imperial Oil Limited