• Net Income: $1,237 million for the third quarter, up $104 million from the second quarter of 2024.

• Cash from Operating Activities: $1,797 million, excluding working capital impacts.

• Upstream Production: 447,000 gross oil equivalent barrels per day, highest third-quarter production in over 30 years.

• Upstream Earnings: $1,027 million, up $228 million from the second quarter.

• Downstream Earnings: $205 million, down $89 million from the second quarter.

• Chemical Earnings: $28 million, down $37 million from the second quarter.

• Refinery Throughput: 389,000 barrels per day, with a utilization rate of 90% for the quarter.

• Capital Expenditures: $486 million in the third quarter, up $99 million from the third quarter of 2023.

• Shareholder Distributions: $322 million in dividends and $1.2 billion in share repurchases in the third quarter.

• Fourth Quarter Dividend: $0.60 per share, consistent with the third quarter.

• Warning! GuruFocus has detected 5 Warning Signs with TUSK.

Release Date: November 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Imperial Oil Ltd (IMO) reported a nearly 10% increase in net income compared to the second quarter, despite lower commodity prices.

• The company achieved record upstream production of 447,000 gross oil equivalent barrels per day, marking the highest third-quarter production in over 30 years.

• Operational performance remained strong with significant reductions in upstream unit costs, contributing to improved financial results.

• The downstream business maintained solid earnings despite planned turnaround activities and softening refinery crack spreads.

• Imperial Oil Ltd (IMO) continues to deliver value to shareholders through a reliable and growing dividend, now increased for the 30th consecutive year, and accelerated share repurchases.

Negative Points

• Net income for the third quarter decreased by $364 million compared to the third quarter of 2023, primarily due to lower margins in the downstream business.

• Downstream earnings decreased by $89 million from the second quarter, reflecting lower refining margins.

• The chemical business saw a decline in earnings by $37 million from the second quarter, driven by a business segmentation shift.

• Capital expenditures increased by $99 million from the third quarter of 2023, with expectations to exceed the initial guidance for the year.

• The company experienced a cash burn in the quarter, raising concerns about maintaining share buybacks if oil prices fall below $70 per barrel.

Q & A Highlights

Q: Can you explain the benefits of the bidirectional pipeline at Syncrude? A: Bradley Corson, CEO, explained that the bidirectional pipeline provides flexibility to import bitumen when needed and shift it to Suncor's operations if there are constraints. This redundancy optimizes operations and results in several thousand barrels per day uplift year over year.