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Imperial Oil (IMO) Q1 Earnings and Revenues Beat Estimates
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Imperial Oil (IMO - Free Report) reported first-quarter 2021 adjusted earnings per share of 42 cents, beating the Zacks Consensus Estimate of 37 cents and also the year-ago quarter’s profit of 5 cents. This outperformance was primarily attributable to impressive revenue contribution from the upstream unit on account of higher realizations of around $700 million.
Moreover, this Canadian integrated oil and gas player’s quarterly revenues of $5.52 billion surpassed the Zacks Consensus Estimate of $5.38 billion. Also, the top line rose from the year-ago quarter’s sales of $4.98 billion.
Segmental Information
Upstream: Revenues of C$3,493 million increased from the prior-year level of C$2,374 million. The segment reported a net income of C$79 million against a net loss of C$608 million in the year-ago quarter. This upside was attributable to higher realizations of around $700 million along with the absence of previous year’s non-cash impairment charge of $229 million associated with the revaluation of Imperial Oil’s inventory.
Net production volumes during the quarter under review averaged 393,000 barrels of oil equivalent per day (Boe/d), down from 403,000 Boe/d in the year-ago quarter. Total oil and NGL output amounted to 372,000 barrels per day (BPD) compared with 374,000 BPD in first-quarter 2020. Net oil and NGL output from Kearl and Cold Lake totalled 173,000 bpd and 112,000 bpd, respectively. Syncrude output averaged 74,000 BPD, up 4.2% from the year-earlier quarter. Net natural gas production came in at 127 million cubic feet per day (Mcf/d), lower than 172 Mcf/d in the comparable quarter last year.
Bitumen price realizations totaled C$47.19 a barrel, up from C$18.08 in the year-ago quarter. The company received an average realized price of C$67.41 per barrel of synthetic oil compared with the year-ago quarter’s C$58.94. For conventional crude oil, it received C$49.54 per barrel compared with the year-ago quarter’s C$41.49. Prices of NGL increased to C$31.16 a barrel while that of gas rose to C$3.24 per thousand cubic feet year over year.
Downstream: Revenues of C$5,305 million were down from $5,379 million in first-quarter 2020. Moreover, the segment earned a net income of C$292 million compared with C$402 million in the year-ago quarter, attributable to weak margins of about $150 million and soft sales volumes of around $60 million.
Refinery throughput in the first quarter averaged 364,000 BPD, lower than the prior-year quarter’s level of 383,000 BPD. Capacity utilization of 85% compared unfavorably with the year-earlier level of 91%. This underperformance was on account of the coronavirus-induced reduced market demand.
Chemical: Revenues of C$376 million rose from C$260 million in first-quarter 2020. Net income was recorded at C$67 million compared with the year-ago quarter’s tally of C$21 million.
Imperial Oil Limited Price, Consensus and EPS Surprise
Total expenses of C$6,486 million declined from the year-ago quarter’s C$6,945 million.
In the quarter under consideration, the company’s capital and exploration expenditures summed C$163 million, down from the year-ago quarter’s C$331 million. Of the total expenditure, 52.1% was allotted to the upstream segment.
Financial Performance
Imperial Oil’s cash flow from operating activities was C$1,045 million in the reported quarter. However, in the year-ago period, cash flow from operating activities came in at C$423 million.
Importantly, the company returned C$162 million to its shareholders through dividends in the reported quarter. It paid out 22 Canadian cents per share of dividend, which matched the year-ago figure.
As of Mar 31, the company held C$1,467 million of cash and cash equivalents. Its total debt amounted to C$5,144 million, representing a total debt-to-total capital of 19%.
Management also informed that the board of directors approved a hike in quarterly dividend payment. The new dividend of 27 Canadian cents is upped almost 23% from the prior dividend. The amount is payable Jul 1, 2021 to all its shareholders of record as of Jun 3, 2021.
Adhering to the company's long-standing obligation to its shareholders, Imperial Oil revised its existing share purchase policy to buy up to 4% of outstanding common shares (as of Jun 15, 2020) by Jun 28, 2021.
Outlook
For the ongoing year, Imperial Oil anticipates its capital expenditures to be $1.2 billion.
Zacks Rank & Other Key Picks
Imperial Oil currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked players in the energy space include Whiting Petroleum Corporation , Matador Resources Company (MTDR - Free Report) and Continental Resources, Inc. , each presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Imperial Oil (IMO) Q1 Earnings and Revenues Beat Estimates
Imperial Oil (IMO - Free Report) reported first-quarter 2021 adjusted earnings per share of 42 cents, beating the Zacks Consensus Estimate of 37 cents and also the year-ago quarter’s profit of 5 cents. This outperformance was primarily attributable to impressive revenue contribution from the upstream unit on account of higher realizations of around $700 million.
Moreover, this Canadian integrated oil and gas player’s quarterly revenues of $5.52 billion surpassed the Zacks Consensus Estimate of $5.38 billion. Also, the top line rose from the year-ago quarter’s sales of $4.98 billion.
Segmental Information
Upstream: Revenues of C$3,493 million increased from the prior-year level of C$2,374 million. The segment reported a net income of C$79 million against a net loss of C$608 million in the year-ago quarter. This upside was attributable to higher realizations of around $700 million along with the absence of previous year’s non-cash impairment charge of $229 million associated with the revaluation of Imperial Oil’s inventory.
Net production volumes during the quarter under review averaged 393,000 barrels of oil equivalent per day (Boe/d), down from 403,000 Boe/d in the year-ago quarter. Total oil and NGL output amounted to 372,000 barrels per day (BPD) compared with 374,000 BPD in first-quarter 2020. Net oil and NGL output from Kearl and Cold Lake totalled 173,000 bpd and 112,000 bpd, respectively. Syncrude output averaged 74,000 BPD, up 4.2% from the year-earlier quarter. Net natural gas production came in at 127 million cubic feet per day (Mcf/d), lower than 172 Mcf/d in the comparable quarter last year.
Bitumen price realizations totaled C$47.19 a barrel, up from C$18.08 in the year-ago quarter. The company received an average realized price of C$67.41 per barrel of synthetic oil compared with the year-ago quarter’s C$58.94. For conventional crude oil, it received C$49.54 per barrel compared with the year-ago quarter’s C$41.49. Prices of NGL increased to C$31.16 a barrel while that of gas rose to C$3.24 per thousand cubic feet year over year.
Downstream: Revenues of C$5,305 million were down from $5,379 million in first-quarter 2020. Moreover, the segment earned a net income of C$292 million compared with C$402 million in the year-ago quarter, attributable to weak margins of about $150 million and soft sales volumes of around $60 million.
Refinery throughput in the first quarter averaged 364,000 BPD, lower than the prior-year quarter’s level of 383,000 BPD. Capacity utilization of 85% compared unfavorably with the year-earlier level of 91%. This underperformance was on account of the coronavirus-induced reduced market demand.
Chemical: Revenues of C$376 million rose from C$260 million in first-quarter 2020. Net income was recorded at C$67 million compared with the year-ago quarter’s tally of C$21 million.
Imperial Oil Limited Price, Consensus and EPS Surprise
Imperial Oil Limited price-consensus-eps-surprise-chart | Imperial Oil Limited Quote
Total Costs & Capex
Total expenses of C$6,486 million declined from the year-ago quarter’s C$6,945 million.
In the quarter under consideration, the company’s capital and exploration expenditures summed C$163 million, down from the year-ago quarter’s C$331 million. Of the total expenditure, 52.1% was allotted to the upstream segment.
Financial Performance
Imperial Oil’s cash flow from operating activities was C$1,045 million in the reported quarter. However, in the year-ago period, cash flow from operating activities came in at C$423 million.
Importantly, the company returned C$162 million to its shareholders through dividends in the reported quarter. It paid out 22 Canadian cents per share of dividend, which matched the year-ago figure.
As of Mar 31, the company held C$1,467 million of cash and cash equivalents. Its total debt amounted to C$5,144 million, representing a total debt-to-total capital of 19%.
Management also informed that the board of directors approved a hike in quarterly dividend payment. The new dividend of 27 Canadian cents is upped almost 23% from the prior dividend. The amount is payable Jul 1, 2021 to all its shareholders of record as of Jun 3, 2021.
Adhering to the company's long-standing obligation to its shareholders, Imperial Oil revised its existing share purchase policy to buy up to 4% of outstanding common shares (as of Jun 15, 2020) by Jun 28, 2021.
Outlook
For the ongoing year, Imperial Oil anticipates its capital expenditures to be $1.2 billion.
Zacks Rank & Other Key Picks
Imperial Oil currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked players in the energy space include Whiting Petroleum Corporation , Matador Resources Company (MTDR - Free Report) and Continental Resources, Inc. , each presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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