EARNINGS / Imperial Oil Q3 results, I
Imperial Oil Limited
TORONTO, Oct. 21 /CNW/ - Imperial Oil Limited today announced
third-quarter net earnings of $196 million, down slightly from $201 million
during the third quarter of 1997. Earnings per share were 45 cents during the
third quarter of 1998, compared with 44 cents during the same period last
year. The company continued its share buyback program, purchasing 2.6 million
shares for $64 million during the third quarter. Cash and marketable
securities were $580 million at the end of the quarter.
Net earnings in the third quarter included a $59-million gain from a tax
refund relating to a number of taxation issues pertaining to the company's
natural-resource business between 1974 and 1990.
Nine-month net earnings were $418 million in 1998, compared with $575
million the previous year.
Total revenues were $6,901 million during the nine-month period in 1998,
down 15 percent from $8,068 million during the same period last year.
The main reason for the reduction in earnings and revenues was a
30-percent decline in crude oil prices from the same period last year.
Bob Peterson, chairman, president and chief executive officer, said:
''Imperial's operations continued to perform well, with year-to-date record
production at Cold Lake, Syncrude and in chemicals. Unfortunately, that solid
operating performance was not enough to offset the continuing weakness in
crude oil and product markets.''
Supplementary information
Natural resources
Net earnings from natural resources were $66 million at the end of nine
months in 1998, down from $292 million during the same period last year. The
reduction in earnings was attributable to much lower prices for crude oil,
which more than offset increased production.
Last-year's results included an after-tax gain of $52 million on asset
sales, while this year's included a $10-million gain.
At Cold Lake, bitumen production reached a record 153,000 barrels a day
during the third quarter.
Petroleum products
Net earnings from petroleum products were $250 million at the end of nine
months, unchanged from the same period last year.
Industry margins were significantly lower during the latest quarter.
Chemicals
Net earnings from chemicals were $77 million at the end of nine months,
compared with $73 million during the same period in 1997. Results included an
after-tax gain of $22 million on the third-quarter sale of the company's
Paramins additive business. Excluding that gain, earnings reflected lower
industry margins that offset record polyethylene production.
Corporate and other
Net earnings from corporate and other operations were $25 million during
the nine months ended Sept. 30, 1998, compared with negative $40 million at
the same time last year. The main reason for the improvement was the tax
refund received during the third quarter of this year.
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