Imperial delivers a strong second quarter and boosts earnings by 45%
Imperial Oil reported net income of $936 million or $1.10 per share in the third quarter, up 45% from the same period last year. Production increased to 307,000 barrels of oil equivalent (boe) per day, an increase of 7% from Q3-2013. The company spent $1.4 billion in capital and exploration for the quarter, spend mostly on their oil sands division. Imperial provided the following update on their oil sands operations in Alberta:
- Bitumen production at the Kearl Oil Sands Mine averaged 78,000 barrels per day (bpd) in the last quarter. A major maintenance turnaround was completed in September which included upgrades and modifications to the ore preparation plant, hydrotransport pipelines, extraction and froth treatment facilities.
- The Kearl Expansion Project was reported at 97% complete by the end of the third quarter. The project remains on schedule for a late-2015 start-up and will add another 110,000 bpd to the overall capacity of the plant.
- The Cold Lake Nabiye in-situ project advanced to 96% complete. Initial steam is planned by year-end and first oil production is expected in Q1 of 2015. The Nabiye facility will have a production capacity of 40,000 bpd once fully operational.
- Production at the Cold Lake in-situ facility averaged 149,000 bpd, up from 147,000 bpd for the third quarter of 2013.
- The Edmonton Rail Terminal project remains on target for an early 2015 start-up. The company has also sanctioned an additional phase of expansion for the terminal which will see the loading capacity increased from 100,000 to 210,000 barrels.
- The average sale price for bitumen was $74.82 for the previous quarter, down 8% for the same period last year.
The Kearl Project is 71% owned by Imperial Oil; ExxonMobil owns the balance at 29%. ExxonMobil owns a 69.6% interest in Imperial Oil. Imperial Oil also has a 25% stake in the Syncrude oil sands operation.
Imperial Oil stock trades on the TSX (TSX:IOL) currently yields a 1% dividend.