Imperial Oil Q2 Loss Narrower Than Estimates, But Revenues Miss - Quick Facts

(RTTNews) - Imperial Oil Ltd. (IMO, IMO.TO) on Friday reported net loss for the second quarter of C$526 million or C$0.72 per share, compared to net income of C$1.21 billion or C$1.57 per share in the year-ago period.

The net loss for the quarter was primarily driven by lower Upstream realizations and Downstream margins.

Total revenues and other income for the quarter fell to C$3.71 billion from C$9.26 billion in the year-ago period.

On average, analysts polled by Thomson Reuters expected the company to report loss of C$0.81 per share for the quarter on revenues of C$4.24 billion. Analysts' estimates typically exclude special items.

The company's second-quarter production averaged 347,000 gross oil-equivalent barrels per day, down from 400,000 barrels per day in the year-ago period. The reduced production was driven mainly by the advancement and extension of planned turnaround activities in response to the current business environment.

Looking ahead, Imperial Oil noted that unless industry conditions improve significantly in the latter half of the year, it expects lower realized prices for its products to result in substantially lower earnings and cash generated from operations than in 2019.

In response to these conditions, the company operated certain assets at reduced rates in the second quarter of 2020, and extended plans to operate certain assets at reduced rates in the third quarter.