Company Quick10K Filing
Imperial Oil
Price26.33 EPS3
Shares770 P/E11
MCap20,274 P/FCF6
Net Debt3,433 EBIT1,752
TEV23,707 TEV/EBIT14
TTM 2019-09-30, in MM, except price, ratios
10-Q 2021-03-31 Filed 2021-05-05
10-K 2020-12-31 Filed 2021-02-24
10-Q 2020-09-30 Filed 2020-11-04
10-Q 2020-06-30 Filed 2020-08-05
10-Q 2020-03-31 Filed 2020-05-06
10-K 2019-12-31 Filed 2020-02-26
10-Q 2019-09-30 Filed 2019-11-06
10-Q 2019-06-30 Filed 2019-08-07
10-Q 2019-03-31 Filed 2019-05-02
10-K 2018-12-31 Filed 2019-02-27
10-Q 2018-09-30 Filed 2018-11-07
10-Q 2018-06-30 Filed 2018-08-02
10-Q 2018-03-31 Filed 2018-05-03
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-01
10-Q 2017-06-30 Filed 2017-08-02
10-Q 2017-03-31 Filed 2017-05-03
10-K 2016-12-31 Filed 2017-02-23
10-Q 2016-09-30 Filed 2016-11-02
10-Q 2016-06-30 Filed 2016-08-03
10-Q 2016-03-31 Filed 2016-05-04
10-K 2015-12-31 Filed 2016-02-24
10-Q 2015-09-30 Filed 2015-11-04
10-Q 2015-06-30 Filed 2015-08-05
10-Q 2015-03-31 Filed 2015-05-06
10-K 2014-12-31 Filed 2015-02-25
10-Q 2014-09-30 Filed 2014-11-05
10-Q 2014-06-30 Filed 2014-08-06
10-Q 2014-03-31 Filed 2014-05-07
10-K 2013-12-31 Filed 2014-02-26
10-Q 2013-09-30 Filed 2013-11-05
10-Q 2013-06-30 Filed 2013-08-06
10-Q 2013-03-31 Filed 2013-05-02
10-K 2012-12-31 Filed 2013-02-27
10-Q 2012-06-30 Filed 2012-08-02
10-Q 2012-03-31 Filed 2012-05-03
10-K 2011-12-31 Filed 2012-02-27
10-Q 2011-09-30 Filed 2011-11-03
10-Q 2011-06-30 Filed 2011-08-04
10-Q 2011-03-31 Filed 2011-05-05
10-K 2010-12-31 Filed 2011-02-25
10-Q 2010-09-30 Filed 2010-11-03
10-Q 2010-06-30 Filed 2010-08-04
10-Q 2010-03-31 Filed 2010-05-06
10-K 2009-12-31 Filed 2010-02-26
8-K 2020-11-24
8-K 2020-11-24
8-K 2020-11-19
8-K 2020-11-04
8-K 2020-10-30
8-K 2020-10-30
8-K 2020-10-28
8-K 2020-10-15
8-K 2020-09-14
8-K 2020-09-02
8-K 2020-07-31
8-K 2020-07-31
8-K 2020-07-16
8-K 2020-06-23
8-K 2020-05-05
8-K 2020-05-05
8-K 2020-05-01
8-K 2020-05-01
8-K 2020-05-01
8-K 2020-04-29
8-K 2020-04-27
8-K 2020-04-16
8-K 2020-04-09
8-K 2020-03-31
8-K 2020-03-19
8-K 2020-01-31
8-K 2020-01-31
8-K 2020-01-21
8-K 2019-11-12
8-K 2019-11-01
8-K 2019-11-01
8-K 2019-10-31
8-K 2019-10-17
8-K 2019-09-27
8-K 2019-09-17
8-K 2019-08-02
8-K 2019-08-02
8-K 2019-07-17
8-K 2019-06-26
8-K 2019-06-21
8-K 2019-04-29
8-K 2019-04-26
8-K 2019-04-26
8-K 2019-04-26
8-K 2019-04-26
8-K 2019-04-25
8-K 2019-04-11
8-K 2019-03-15
8-K 2019-02-27
8-K 2019-02-01
8-K 2019-02-01
8-K 2019-01-21
8-K 2018-11-07
8-K 2018-11-06
8-K 2018-11-02
8-K 2018-11-01
8-K 2018-10-22
8-K 2018-10-22
8-K 2018-10-22
8-K 2018-08-28
8-K 2018-07-27
8-K 2018-07-26
8-K 2018-07-11
8-K 2018-07-09
8-K 2018-05-01
8-K 2018-04-27
8-K 2018-04-27
8-K 2018-03-07
8-K 2018-02-28
8-K 2018-02-15
8-K 2018-02-15
8-K 2018-02-02

IMO 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 d286894dex311.htm
EX-31.2 d286894dex312.htm
EX-32.1 d286894dex321.htm
EX-32.1 d286894dex3211.htm

Imperial Oil Earnings 2021-03-31

Balance SheetIncome StatementCash Flow
45362718902012201420172020
Assets, Equity
151185202012201420172020
Rev, G Profit, Net Income
2.21.20.1-0.9-2.0-3.02012201420172020
Ops, Inv, Fin

10-Q
Table of Contents
Q1false0000049938--12-31falseYesYesfalsefalseCAAmounts to related parties included in purchases of crude oil and products. 515 739Amounts to related parties included in production and manufacturing, and selling and general expenses. 116 183Amounts from related parties included in revenues. 1,508 1,736Investments and long-term receivables included amounts from related parties of $300 million (2020 - $313 million).Accounts receivable - net included net amounts receivable from related parties of $361 million (2020 - $384 million).Long-term debt included amounts to related parties of $4,447 million (2020 - $4,447 million).Notes and loans payable included amounts to related parties of $75 million (2020 - $111 million).Number of common shares authorized and outstanding were 1,100 million and 734 million, respectively (2020 - 1,100 million and 734 million, respectively). Included contributions to registered pension plans. (28) (59)Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are all highly liquid securities with maturity of three months or less when purchased.Included export sales to the United States of $1,569 million (2020 - $1,373 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment.Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits.Total recorded employee retirement benefits obligations also included $58 million in current liabilities (2020 - $58 million).Total asset retirement obligations and other environmental liabilities also included $100 million in current liabilities (2020 - $100 million).For three months to March 31, 2020, the Net income (loss) per common share – diluted excludes the effect of 2.0 million employee share-based awards. Share-based awards have the potential to dilute basic earnings per share in the future.Total operating lease liability also included $82 million in current liabilities (2020 - $97 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $30 million (2020 - $27 million).Amounts to related parties included in financing, (note 5). 11 24 Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”. Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”. 0000049938 2021-01-01 2021-03-31 0000049938 2021-03-31 0000049938 2020-12-31 0000049938 2020-01-01 2020-03-31 0000049938 2020-06-29 0000049938 2020-06-29 2020-06-29 0000049938 2020-03-31 0000049938 2020-01-01 2020-12-31 0000049938 2020-06-15 2020-06-15 0000049938 2019-12-31 0000049938 imo:ChemicalMember 2020-01-01 2020-03-31 0000049938 imo:DownstreamMember 2020-01-01 2020-03-31 0000049938 imo:UpstreamMember 2020-01-01 2020-03-31 0000049938 us-gaap:CorporateAndOtherMember 2020-01-01 2020-03-31 0000049938 srt:ConsolidationEliminationsMember 2020-01-01 2020-03-31 0000049938 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imo:InvestmentsAndLongTermReceivablesMember 2021-03-31 0000049938 imo:NotesAndLoansPayableMember 2021-03-31 0000049938 imo:NoncurrentLiabilitiesMember 2021-03-31 0000049938 imo:UpstreamMember 2021-03-31 0000049938 imo:DownstreamMember 2021-03-31 0000049938 imo:ChemicalMember 2021-03-31 0000049938 us-gaap:CorporateAndOtherMember 2021-03-31 0000049938 srt:ConsolidationEliminationsMember 2021-03-31 0000049938 imo:MasterNettingArrangementsMember 2021-03-31 0000049938 us-gaap:FairValueInputsLevel1Member 2021-03-31 0000049938 us-gaap:FairValueInputsLevel2Member 2021-03-31 0000049938 us-gaap:FairValueInputsLevel3Member 2021-03-31 0000049938 imo:DerivativeFairValueOfDerivativeAmountEffectOfCounterPartyNettingMember 2021-03-31 0000049938 imo:DerivativeFairValueOfDerivativeAmountEffectOfCollateralNettingMember 2021-03-31 0000049938 us-gaap:AccountsPayableAndAccruedLiabilitiesMember 2021-03-31 0000049938 us-gaap:RetainedEarningsMember 2020-03-31 0000049938 imo:UpstreamMember 2020-03-31 0000049938 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Table of Contents
FORM
10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[
]
    
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2021
OR
[
    
]
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from —- to —-
Commission file number
0-12014
IMPERIAL OIL LIMITED
(Exact name of registrant as specified in its charter)
 
 
CANADA
    
98-0017682
 
(State or other jurisdiction
of incorporation or organization)
     (I.R.S. Employer Identification No.)
 
505 Quarry Park Boulevard S.E. Calgary, Alberta, Canada
    
T2C 5N1
  (Address of principal executive offices)      (Postal Code)
Registrant’s telephone number, including area code:
1-800-567-3776
 
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class   
Trading symbol
  
Name of each exchange on
which registered
None   
 
   None
The registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
  YES  
  
  
  NO  
        
The registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
  YES  
  
  
  NO   
        
The registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule
12b-2
of the Exchange Act of 1934.
 
Large accelerated filer
 
  
  
   Smaller reporting company  
        
 
Non-accelerated filer    
 
        
   Emerging growth company  
        
                      
Accelerated filer  
        
      
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
        
The registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act of 1934).
  YES  
        
  NO  
  
  
The number of common shares outstanding, as of March 31, 2021 was 734,076,755.

Table of Contents
IMPERIAL OIL LIMITED
 
 
Table of contents
Page
 
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     22  
     23  
 
 
In this report all dollar amounts are expressed in Canadian dollars unless otherwise stated. This report should be read in conjunction with the company’s annual report on Form 10-K for the year ended December 31, 2020. Note that numbers may not add due to rounding.
The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.
In this report, unless the context otherwise indicates, reference to “the company” or “Imperial” includes Imperial Oil Limited and its subsidiaries.
 
2

Table of Contents
IMPERIAL OIL LIMITED
 
 
 
PART I.  FINANCIAL INFORMATION
 
Item 1.
Financial statements
Consolidated statement of income (U.S. GAAP, unaudited)
 
         Three Months
    to March 31
 
millions of Canadian dollars
  
2021
     2020  
Revenues and other income
                 
Revenues
(a)
  
 
6,992
 
     6,664  
Investment and other income
(note 3)
  
 
6
 
     26  
Total revenues and other income
  
 
6,998
 
     6,690  
     
Expenses
                 
Exploration
  
 
2
 
     1  
Purchases of crude oil and products
(b) (note 11)
  
 
3,887
 
     4,226  
Production and manufacturing
(c)
  
 
1,485
 
     1,579  
Selling and general
(c)
  
 
189
 
     166  
Federal excise tax and fuel charge
  
 
404
 
     451  
Depreciation and depletion
(note 11)
  
 
494
 
     473  
Non-service
pension and postretirement benefit
  
 
11
 
     30  
Financing
(d) (note 5)
  
 
14
 
     19  
Total expenses
  
 
6,486
 
     6,945  
     
Income (loss) before income taxes
  
 
512
 
     (255
     
Income taxes
  
 
120
 
     (67
     
Net income (loss)
  
 
392
 
     (188
     
Per share information
(Canadian dollars)
                 
     
Net income (loss) per common share - basic
(note 9)
  
 
0.53
 
     (0.25
Net income (loss) per common share - diluted
(note 9)
  
 
0.53
 
     (0.25
(a)  Amounts from related parties included in revenues.
  
 
1,508
 
     1,736  
     
(b)  Amounts to related parties included in purchases of crude oil and products.
  
 
515
 
     739  
     
(c)   Amounts to related parties included in production and manufacturing, and selling and general expenses.
  
 
116
 
     183  
     
(d)  Amounts to related parties included in financing, (note 5).
  
 
11
 
     24  
The information in the notes to consolidated financial statements is an integral part of these statements.
 
3

Table of Contents
IMPERIAL OIL LIMITED
 
 
 
Consolidated statement of comprehensive income (U.S. GAAP, unaudited)
 
    
    Three Months
    to March 31
 
millions of Canadian dollars
  
2021
     2020  
Net income (loss)
  
 
392
 
     (188
     
Other comprehensive income (loss), net of income taxes
                 
Postretirement benefits liability adjustment (excluding amortization)
  
 
54
 
     (114
Amortization of postretirement benefits liability adjustment included in net periodic benefit costs
  
 
33
 
     34  
Total other comprehensive income (loss)
  
 
87
 
     (80
                   
Comprehensive income (loss)
  
 
479
 
     (268
The information in the notes to consolidated financial statements is an integral part of these statements.
 
4

Table of Contents
IMPERIAL OIL LIMITED
 
 
 
Consolidated balance sheet (U.S. GAAP, unaudited)
 
     As at
Mar 31
    As at
Dec 31
 
millions of Canadian dollars
  
2021
    2020  
Assets
                
Current assets
                
Cash
  
 
1,467
 
    771  
Accounts receivable - net
(a)
  
 
2,388
 
    1,919  
Inventories of crude oil and products
  
 
1,256
 
    1,161  
Materials, supplies and prepaid expenses
  
 
737
 
    673  
Total current assets
  
 
5,848
 
    4,524  
Investments and long-term receivables
(b)
  
 
765
 
    781  
Property, plant and equipment,
  
 
55,911
 
    55,771  
less accumulated depreciation and depletion
  
 
(24,211
    (23,737
Property, plant and equipment, net
  
 
31,700
 
    32,034  
Goodwill
(note 11)
  
 
166
 
    166  
Other assets, including intangibles - net
  
 
528
 
    526  
Total assets
  
 
39,007
 
    38,031  
     
Liabilities
                
Current liabilities
                
Notes and loans payable
(c)
  
 
191
 
    227  
Accounts payable and accrued liabilities
(a) (note 7)
  
 
3,721
 
    3,153  
Income taxes payable
  
 
21
 
    -  
Total current liabilities
  
 
3,933
 
    3,380  
Long-term debt
(d) (note 6)
  
 
4,953
 
    4,957  
Other long-term obligations
(note 7)
  
 
4,094
 
    4,100  
Deferred income tax liabilities
  
 
4,291
 
    4,176  
Total liabilities
  
 
17,271
 
    16,613  
     
Shareholders’ equity
                
Common shares at stated value
(e) (note 9)
  
 
1,357
 
    1,357  
Earnings reinvested
  
 
22,281
 
    22,050  
Accumulated other comprehensive income (loss)
(note 10)
  
 
(1,902
    (1,989
Total shareholders’ equity
  
 
21,736
 
    21,418  
     
Total liabilities and shareholders’ equity
  
 
39,007
 
    38,031  
(a)
Accounts receivable - net included net amounts receivable from related parties of $
361
 million (2020 - $
384
million).
(b)
Investments and long-term receivables included amounts from related parties of $
300
 million (2020 - $
313
million).
(c)
Notes and loans payable included amounts to related parties of $
75
 million (2020 - $
111
million).
(d)
Long-term debt included amounts to related parties of $
4,447
 million (2020 - $
4,447
million).
(e)
Number of common shares authorized and outstanding were
1,100
 million and
734
 million, respectively (2020 -
1,100
 million and
734
 million, respectively).
The information in the notes to consolidated financial statements is an integral part of these statements.
 
5

Table of Contents
IMPERIAL OIL LIMITED
 
 
 
Consolidated statement of shareholders’ equity (U.S. GAAP, unaudited)
 
    
    Three Months
    to March 31
 
millions of Canadian dollars
  
2021
    2020  
Common shares at stated value
(note 9)
                
At beginning of period
  
 
1,357
 
    1,375  
Share purchases at stated value
  
 
-
 
    (18
At end of period
  
 
1,357
 
    1,357  
     
Earnings reinvested
                
At beginning of period
  
 
22,050
 
    24,812  
Net income (loss) for the period
  
 
392
 
    (188
Share purchases in excess of stated value
  
 
-
 
    (256
Dividends declared
  
 
(161
    (162
Cumulative effect of accounting change
  
 
-
 
    (2
At end of period
  
 
22,281
 
    24,204  
     
Accumulated other comprehensive income (loss)
(note 10)
                
At beginning of period
  
 
(1,989
    (1,911
Other comprehensive income (loss)
  
 
87
 
    (80
At end of period
  
 
(1,902
    (1,991
     
Shareholders’ equity at end of period
  
 
21,736
 
    23,570  
The information in the notes to consolidated financial statements is an integral part of these statements.
 
6

Table of Contents
IMPERIAL OIL LIMITED
 
 
 
Consolida
t
ed statement of cash flows (U.S. GAAP, unaudited)
 
Inflow (outflow)
  
    Three Months
    to March 31
 
millions of Canadian dollars
  
2021
 
 
2020
 
Operating activities
  
     
 
     
Net income (loss)
  
 
392
 
 
  (188
Adjustments for
non-cash
items:
        
 
     
Depreciation and depletion
  
 
494
 
 
  453  
Impairment of intangible assets
(note 11)
  
 
-
 
 
  20  
(Gain) loss on asset sales
(note 3)
  
 
(3
)
 
  (7
Inventory write-down to current market value
(note 11)
  
 
-
 
 
  281  
Deferred income taxes and other
  
 
60
 
 
  43  
Changes in operating assets and liabilities:
        
 
     
Accounts receivable
  
 
(469
)
 
  1,143  
Inventories, materials, supplies and prepaid expenses
  
 
(159
)
 
  (199
Income taxes payable
  
 
21
 
 
  (104
Accounts payable and accrued liabilities
  
 
584
 
 
  (1,028
All other items - net
(b)
  
 
125
 
 
  9  
Cash flows from (used in) operating activities
  
 
1,045
 
 
  423  
     
Investing activities
        
 
     
Additions to property, plant and equipment
 
 
(167
 
 
(310
Proceeds from asset sales
(note 3)
  
 
7
 
 
  9  
Loans to equity companies - net
  
 
13
 
 
  (7
Cash flows from (used in) investing activities
  
 
(147
)
 
  (308
     
Financing activities
        
 
     
Short-term debt - net
  
 
(36
)
 
 
-
 
Reduction in finance lease obligations
(note 6)
  
 
(4
)
 
  (7
Dividends paid
  
 
(162
)
 
  (164
Common shares purchased
(note 9)
  
 
-
 
 
  (274
Cash flows from (used in) financing activities
  
 
(202
)
 
  (445
     
Increase (decrease) in cash
  
 
696
 
 
  (330
Cash at beginning of period
  
 
771
 
 
  1,718  
Cash at end of period
(a)
  
 
1,467
 
 
  1,388  
(a)  Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are all highly liquid securities with maturity of three months or less when purchased.
(b)  Included contributions to registered pension plans.
  
 
(28
)
 
 
 
(59
Income taxes (paid) refunded.
  
 
1
 
 
 
(153
Interest (paid), net of capitalization.
  
 
(13
 
 
(19
The information in the notes to consolidated financial statements is an integral part of these statements.
 
7

IMPERIAL OIL LIMITED
 
 
 
Notes to consolidated financial statements (unaudited)
1.  Basis of financial statement preparation
These unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) and follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual consolidated financial statements filed with the U.S. Securities and Exchange Commission (SEC) in the company’s 2020 annual report on Form
10-K.
In the opinion of the company, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature.
The company’s exploration and production activities are accounted for under the “successful efforts” method.
The results for the three months ended March 31, 2021, are not necessarily indicative of the operations to be expected for the full year.
All amounts are in Canadian dollars unless otherwise indicated.
 
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IMPERIAL OIL LIMITED
 
 
 
2.  Business segments
 
Three Months to March 31    Upstream            Downstream            Chemical          
millions of Canadian dollars
  
2021 
   2020    
2021 
   2020    
2021 
   2020 
Revenues and other income
                           
Revenues
(a)
  
2,142 
   1,652  
4,527 
   4,796  
323
   216
Intersegment sales
  
1,351 
   722  
773 
   568  
53
   44
Investment and other income
(note 3)
  
- 
   -  
5 
   15  
-
   -
 
  
3,493 
   2,374  
5,305 
   5,379  
376
   260
Expenses
                           
Exploration
  
2 
   1  
- 
   -  
-
   -
Purchases of crude oil and products
(note 11)
  
1,834 
   1,650  
4,020 
   3,769  
209
   140 
Production and manufacturing
  
1,109
   1,108  
326 
   408  
50
   63
Selling and general
  
- 
   -  
133 
   181  
25
   25
Federal excise tax and fuel charge
  
- 
   -  
404 
   451  
-
   -
Depreciation and depletion
(note 11)
  
445 
   417  
39 
   46  
4
   4
Non-service
pension and postretirement benefit
  
- 
   -  
- 
   -  
-
   -
Financing
(note 5)
  
1 
   -  
- 
   -  
-
   -
Total expenses
  
3,391 
   3,176  
4,922 
   4,855  
288
   232
Income (loss) before income taxes
  
102 
   (802)  
383 
   524  
88
   28
Income tax expense (benefit)
  
23 
   (194)  
91 
   122  
21
   7
Net income (loss)
  
79 
   (608)  
292 
   402  
67
   21
Cash flows from (used in) operating activities
  
531 
   464  
462 
   22  
62
   (3)
Capital and exploration expenditures
(b)
  
85 
   231  
68 
   76  
2
   9
Total assets as at March
 31
(note 11)
  
31,754 
   33,367  
4,909 
   4,580  
462
   438
       
Three Months to March 31
  
Corporate and other 
  
Eliminations       
  
Consolidated       
millions of Canadian dollars
  
2021 
  
2020 
  
2021 
  
2020 
  
2021 
  
2020 
Revenues and other income
  
 
  
 
  
 
  
 
  
 
  
 
Revenues
(a)
  
- 
  
- 
  
- 
  
- 
  
6,992 
  
6,664 
Intersegment sales
  
- 
  
- 
  
(2,177)
  
(1,334)
  
- 
  
- 
Investment and other income
(note 3)
  
1 
  
11 
  
- 
  
- 
  
6 
  
26 
 
  
1 
  
11 
  
(2,177)
  
(1,334)
  
6,998 
  
6,690 
Expenses
  
 
  
 
  
 
  
 
  
 
  
 
Exploration
  
- 
  
- 
  
- 
  
- 
  
2 
  
1 
Purchases of crude oil and products
(note 11)
  
- 
  
- 
  
(2,176)
  
(1,333)
  
3,887 
  
4,226 
Production and manufacturing
  
- 
  
- 
  
- 
  
- 
  
1,485 
  
1,579 
Selling and general
  
32 
  
(39)
  
(1)
  
(1)
  
189 
  
166 
Federal excise tax and fuel charge
  
- 
  
- 
  
- 
  
- 
  
404 
  
451 
Depreciation and depletion
(note 11)
  
6 
  
6 
  
- 
  
- 
  
494 
  
473 
Non-service
pension and postretirement benefit
  
11 
  
30 
  
- 
  
- 
  
11 
  
30 
Financing
(note 5)
  
13 
  
19 
  
- 
  
- 
  
14 
  
19 
Total expenses
  
62 
  
16 
  
(2,177)
  
(1,334)
  
6,486 
  
6,945 
Income (loss) before income taxes
  
(61)
  
(5)
  
- 
  
- 
  
512 
  
(255)
Income tax expense (benefit)
  
(15)
  
(2)
  
- 
  
- 
  
120 
  
(67)
Net income (loss)
  
(46)
  
(3)
  
- 
  
- 
  
392 
  
(188)
Cash flows from (used in) operating activities
  
(10)
  
(43)
  
- 
  
(17)
  
1,045 
  
423 
Capital and exploration expenditures
(b)
  
8 
  
15 
  
- 
  
- 
  
163 
  
331 
Total assets as at March
 31
(note 11)
  
2,346 
  
2,242 
  
(464)
  
(214)
  
39,007 
  
40,413 
 
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IMPERIAL OIL LIMITED
 
 
 
(a)
Included export sales to the United States of $
1,569
 million (2020 - $
1,373
million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment.
(b)
Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits.
 
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IMPERIAL OIL LIMITED
 
 
 
3.  Investment and other income
Investment and other income included gains and losses on asset sales as follows:
 
    
    Three Months
    to March 31
 
millions of Canadian dollars
  
2021
    2020  
Proceeds from asset sales
  
 
7
 
    9  
Book value of asset sales
  
 
4
 
    2  
Gain (loss) on asset sales,
before
 
tax
  
 
3
 
    7  
Gain (loss) on asset sales,
after
 
tax
  
 
       2
 
           6  
4.  Employee retirement benefits
The components of net benefit cost were as follows:
 
    
    Three Months
    to March 31
 
millions of Canadian dollars
  
2021
    2020  
Pension benefits:
                
Current service cost
  
 
81
 
    76  
Interest cost
  
 
68
 
    77  
Expected return on plan assets
  
 
(107
    (98
Amortization of prior service cost
  
 
4
 
    4  
Amortization of actuarial loss (gain)
  
 
36
 
    38  
Net periodic benefit cost
  
 
82
 
         97  
     
Other postretirement benefits:
                
Current service cost
  
 
7
 
    6  
Interest cost
  
 
6
 
    6  
Amortization of actuarial loss (gain)
  
 
4
 
    3  
Net periodic benefit cost
  
 
       17
 
         15  
5.  Financing costs
 
    
    Three Months
    to March 31
 
millions of Canadian dollars
  
2021
    2020  
Debt-related interest
  
 
21
 
    34  
Capitalized interest
  
 
(8
    (15
Net interest expense
  
 
13
 
    19  
Other interest
  
 
1
 
    -  
Total financing
  
 
     14
 
         19  
6.  Long-term debt
 
     As at
Mar 31
    As at
Dec 31
 
millions of Canadian dollars
  
2021
    2020  
Long-term debt
  
 
4,447
 
    4,447  
Finance leases
  
 
506
 
    510  
Total long-term debt
  
 
4,953
 
    4,957  
 
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IMPERIAL OIL LIMITED
 
 
 
7.  Other long-term obligations
 
     As at
Mar 31
     As at
Dec 31
 
millions of Canadian dollars
  
2021
     2020  
Employee retirement benefits
(a)
  
 
2,036
 
     2,105  
Asset retirement obligations and other environmental liabilities
(b)
  
 
1,680
 
     1,676  
Share-based incentive compensation liabilities
  
 
68
 
     45  
Operating lease liability
(c)
  
 
92
 
     95  
Other obligations
  
 
218
 
     179  
Total other long-term obligations
  
 
4,094
 
     4,100  
(a)
Total recorded employee retirement benefits obligations also included $
58
 million in current liabilities (2020 - $
58
million).
(b)
Total asset retirement obligations and other environmental liabilities also included $
100
 million in current liabilities (2020 - $
100
million).
(c)
Total operating lease liability also included $
82
 million in current liabilities (2020 - $
97
million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $
30
 million (2020 - $
27
million).
 
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IMPERIAL OIL LIMITED
 
 
 
8.  Financial and derivative instruments
Financial instruments
The fair value of the company’s financial instruments is determined by reference to various market data and other appropriate valuation techniques. There are no material differences between the fair value of the company’s financial instruments and the recorded carrying value. At March 31, 2021 and December 31, 2020, the fair value of long-term debt ($4,447 million, excluding finance lease obligations) was primarily a level 2 measurement.
Derivative instruments
The company’s size, strong capital structure and the complementary nature of the Upstream, Downstream and Chemical businesses reduce the company’s enterprise-wide risk from changes in commodity prices and currency exchange rates. In addition, the company uses commodity-based contracts, including derivative instruments to manage commodity price risk. The company does not designate derivative instruments as a hedge for hedge accounting purposes.
Credit risk associated with the company’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The company maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.
The net notional long/(short) position of derivative instruments was:
 
(thousands of barrels)
   As at
March 31
2021
    As at
Dec 31
2020
 
Crude
  
 
220
 
    (800
Products
  
 
(560
    (390
Realized and unrealized gain or (loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a
before-tax
basis:
 
    
    Three Months
    to March 31
 
millions of Canadian dollars
  
2021
    2020  
Revenues
  
 
-
 
    1  
Purchases of crude oil and products
  
 
(14
    34  
Total
  
 
(14
    35  
 
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IMPERIAL OIL LIMITED
 
 
 
The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement is as follows:
 
millions of Canadian dollars
At March 31, 2021
 
     Fair value     
Effect of
counterparty
netting
   
Effect of
collateral
netting
   
Net
carrying
value
 
      Level 1      Level 2      Level 3      Total  
Assets
                                                            
Derivative assets
(a)
  
 
7
 
  
 
-
 
  
 
-
 
  
 
7
 
    
(2
)
 
   
(5
)
 
 
 
-
 
               
Liabilities
                                                            
Derivative liabilities
(b)
  
 
2
 
  
 
-
 
  
 
-
 
  
 
2
 
    
(2
)
 
 
 
-
 
 
 
-
 
(a)  Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”.
(b)  Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”.
 
 
 
 
millions of Canadian dollars
At December 31, 2020
 
     Fair value     
Effect of
counterparty
netting
   
Effect of
collateral
netting
   
Net
carrying
value
 
      Level 1      Level 2      Level 3      Total  
Assets
                                                            
Derivative assets
(a)
     2        -        -        2        (2     -       -  
               
Liabilities
                                                            
Derivative liabilities
(b)
     12        -        -        12        (2     (10     -  
(a)  Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”.
(b)  Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”.
 
 
 
At March 31, 2021 and December 31, 2020, respectively, the company had $14 million and $5 million of collateral under a master netting arrangement not offset against the
 
derivatives
 
on the Consolidated balance sheet in “Accounts receivable - net”, primarily related to initial margin requirements.
 
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IMPERIAL OIL LIMITED
 
 
 
9.    Common shares
 
thousands of shares
   As of
Mar 31
2021
    
As of
Dec 31
2020
 
Authorized
  
 
1,100,000
 
     1,100,000  
Common shares outstanding
  
 
734,077
 
     734,077  
The
12-month
limited normal course issuer bid program that was in place throughout the first quarter of 2021 came into effect on June 29, 2020 and was established primarily to eliminate dilution from shares issued in conjunction with Imperial’s restricted stock unit plan. The program enabled the company to purchase up to a maximum of 50,000 common shares, which includes shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. As in the past, Exxon Mobil Corporation has advised the company that it intends to participate to maintain its ownership percentage at approximately 69.6 percent. The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of earnings reinvested.
On April 30, 2021, the company announced an amendment to its normal course issuer bid to increase the number of common shares that it may purchase. Under the amendment, the number of common shares that may be purchased will increase to a maximum of
29,363,070
common shares (
4
percent of the total shares on June 15, 2020) during the period June 29, 2020 to June 28, 2021, which includes shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. No other provisions of the normal course issuer bid have changed.
The company’s common share activities are summarized below:
      Thousands
of shares
    Millions
of dollars
 
Balance as at December 31, 2019
     743,902              1,375  
Issued under employee share-based awards
     7       -  
Purchases at stated value
     (9,832     (18
Balance as at December 31, 2020
        734,077       1,357  
Issued under employee share-based awards
     -       -  
Purchases at stated value
  
 
-
 
 
 
-
 
Balance as at March 31, 2021
  
 
734,077
 
 
 
1,357
 
The following table provides the calculation of basic and diluted earnings per common share and the dividends declared by the company on its outstanding common shares:
    
              Three Months
              to March 31
 
     
2021
     2020  
Net income (loss) per common share - basic
                 
Net income (loss)
(millions of Canadian dollars)
  
 
                 392
 
     (188
Weighted average number of common shares outstanding
(millions of shares)
  
 
734.1
 
     738.9  
Net income (loss) per common share
(dollars)
  
 
0.53
 
     (0.25
     
Net income (loss) per common share - diluted
                 
Net income (loss)
(millions of Canadian dollars)
  
 
392
 
     (188
Weighted average number of common shares outstanding
(millions of shares)
  
 
734.1
 
     738.9  
Effect of employee share-based awards
(millions of shares) (a)
  
 
1.6
 
     -  
Weighted average number of common shares outstanding, assuming dilution
(millions of shares)
  
 
735.7
 
     738.9  
Net income (loss) per common share
(dollars)
  
 
0.53
 
     (0.25
     
Dividends per common share - declared
(dollars)
  
 
0.22
 
               0.22  
(a)
For three months to March 31, 2020, the Net income (loss) per common share – diluted
e
xcludes the effect of
2.0
 million employee share-based awards. Share-based awards have the potential to dilute basic earnings per share in the future.
 
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IMPERIAL OIL LIMITED
 
 
 
10.    Other comprehensive income (loss) in
f
ormation
Changes in accumulated other comprehensive income (loss):
 
millions of Canadian dollars
  
2021
    2020  
Balance at January 1
  
 
(1,989
    (1,911
Postretirement benefits liability adjustment:
                
Current period change excluding amounts reclassified from accumulated other comprehensive income
  
 
54
 
    (114
Amounts reclassified from accumulated other comprehensive income
  
 
       33
 
               34  
Balance at March 31
  
 
(1,902
    (1,991
Amounts reclassified out of accumulated other comprehensive income (loss) - before tax income (expense):
 
         Three Months
    to March 31
 
millions of Canadian dollars
  
2021
     2020  
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost (a)
  
 
(44)
 
     (45)  
(a)
This accumulated other comprehensive income component is included in the computation of net periodic benefit cost (note 4).
Income tax expense (credit) for components of other comprehensive income (loss):
 
         Three Months
    to March 31
 
millions of Canadian dollars
  
2021
     2020  
Postretirement benefits liability adjustments:
                 
Postretirement benefits liability adjustment (excluding amortization)
  
 
17
 
     (37
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost
  
 
11
 
     11  
Total
  
 
28
 
     (26
11.  Miscellaneous financial information
At March 31, 2021, due to the termination of transportation services agreements related to a third-party pipeline project, the company recognized a liability of $62 million, previously reported as a contingent liability in Note 10 of Imperial’s Form
10-K.
In connection with the same project, commitments under “Other long-term purchase agreements” as reported in Imperial’s Form
10-K
decreased by approximately $2.9 billion. The majority of these commitments related to years 2026 and beyond.
In the first quarter of 2020, a
non-cash
charge of $281 million after tax (Upstream - $229 million; Downstream - $52 million) was recorded associated with the carrying value of crude oil inventory exceeding the current market value.
In the first quarter of 2020, with the change in economic conditions and the reduction in the company’s market capitalization, the company assessed its goodwill balances for impairment and recognized a
non-cash
goodwill impairment charge of $20 million in the company’s Upstream segment. The goodwill impairment is reflected in “Depreciation and depletion” on the Consolidated statement of income and “Goodwill” on the Consolidated balance sheet. The remaining balance of goodwill is associated with the Downstream segment.
 
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IMPERIAL OIL LIMITED
 
 
 
Item 2.
Management’s discussion and analysis of financial condition and results of operations
Operating results
First quarter 2021 vs. first quarter 2020
In early 2020, the balance of supply and demand for petroleum and petrochemical products experienced two significant disruptive effects. On the demand side, the
COVID-19
pandemic spread rapidly through most areas of the world resulting in substantial reductions in consumer and business activity and significantly reduced demand for crude oil, natural gas, and petroleum products. This reduction in demand coincided with announcements of increased production in certain key
oil-producing
countries which led to increases in inventory levels and sharp declines in prices for crude oil, natural gas, and petroleum products.
While demand has rebounded considerably, the lingering effects of the weak 2020 business environment has continued to have a negative impact on financial results in 2021 when compared to periods prior to the pandemic. Signs of improvement are emerging including higher crude and gas prices through the quarter and stronger Downstream and Chemical margins.
The company recorded net income of $392 million or $0.53 per share on a diluted basis in the first quarter of 2021, compared to a net loss of $188 million or $0.25 per share in the same period of 2020. First quarter 2020 results included
non-cash
charges of $281 million relating to the revaluation of the company’s inventory.
Upstream recorded net income of $79 million in the first quarter of 2021, compared to a net loss of $608 million in the same period of 2020. Improved results reflect higher realizations of about $700 million and the absence of the prior year
non-cash
charge of $229 million, related to the revaluation of the company’s inventory. These items were partially offset by higher royalties of about $100 million, unfavourable foreign exchange effects of about $70 million, and higher operating expenses of about $60 million.
West Texas Intermediate (WTI) averaged US$58.14 per barrel in the first quarter of 2021, up from US$45.78 per barrel in the same quarter of 2020. Western Canada Select (WCS) averaged US$45.64 per barrel and US$25.60 per barrel for the same periods. The WTI / WCS differential averaged approximately US$13 per barrel for the first quarter of 2021, compared to around US$20 in the same period of 2020.
The Canadian dollar averaged US$0.79 in the first quarter of 2021, an increase of US$0.05 from the first quarter of 2020.
Imperial’s average Canadian dollar realizations for bitumen increased in the quarter, primarily due to an increase in WCS. Bitumen realizations averaged $47.19 per barrel in the first quarter of 2021, up from $18.08 per barrel in the first quarter of 2020. The company’s average Canadian dollar realizations for synthetic crude increased generally in line with WTI, adjusted for changes in exchange rates and transportation costs. Synthetic crude realizations averaged $67.41 per barrel in the first quarter of 2021, up from $58.94 per barrel in the same period of 2020.
Total gross production of Kearl bitumen averaged 251,000 barrels per day in the first quarter (178,000 barrels Imperial’s share), up from 226,000 barrels per day (160,000 barrels Imperial’s share) in the first quarter of 2020. Higher production was primarily driven by the supplemental crushing facilities.
Gross production of Cold Lake bitumen averaged 140,000 barrels per day in the first quarter, in line with 140,000 barrels per day in the same period of 2020.
The company’s share of gross production from Syncrude averaged 79,000 barrels per day, up from 73,000 barrels per day in the first quarter of 2020.
Downstream recorded net income of $292 million in the first quarter of 2021, compared to net income of $402 million in the same period of 2020. Results were negatively impacted by lower margins of about $150 million and lower sales volumes of about $60 million. These items were partially offset by the absence of the prior year
non-cash
charge of $52 million, related to the revaluation of the company’s inventory and lower operating expenses of about $50 million.
 
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IMPERIAL OIL LIMITED
 
 
 
Refinery throughput averaged 364,000 barrels per day, compared to 383,000 barrels per day in the first quarter of 2020. Capacity utilization was 85 percent, compared to 91 percent in the first quarter of 2020. Lower refinery throughput was primarily driven by lower market demand due to the
COVID-19
pandemic.
Petroleum product sales were 414,000 barrels per day, compared to 462,000 barrels per day in the first quarter of 2020. Lower petroleum product sales were primarily driven by reduced demand due to the
COVID-19
pandemic.
Chemical net income was $67 million in the first quarter, up from net income of $21 million in the same quarter of 2020.
Corporate and other expenses were $46 million in the first quarter, up from $3 million in the same period of 2020, mainly due to higher share-based compensation costs.
Liquidity and capital resources
Cash flow generated from operating activities was $1,045 million in the first quarter, up from $423 million in the corresponding period in 2020, primarily reflecting higher Upstream realizations.
Investing activities used net cash of $147 million in the first quarter, compared with $308 million used in the same period of 2020, primarily reflecting lower additions to property, plant and equipment.
Cash used in financing activities was $202 million in the first quarter, compared with $445 million used in the first quarter of 2020. Dividends paid in the first quarter of 2021 were $162 million. The per share dividend paid in the first quarter was $0.22, consistent with the same period of 2020. The company did not purchase shares during the first quarter. In the first quarter of 2020, the company purchased about 9.8 million shares for $274 million, including shares purchased from Exxon Mobil Corporation.
The company’s cash balance was $1,467 million at March 31, 2021, versus $1,388 million at the end of first quarter 2020.
At March 31, 2021, due to the termination of transportation services agreements related to a third-party pipeline project, the company recognized a liability of $62 million, previously reported as a contingent liability in Note 10 of Imperial’s Form
10-K.
In connection with the same project, commitments under “Other long-term purchase agreements” as reported in Imperial’s Form
10-K
decreased by approximately $2.9 billion. The majority of these commitments related to years 2026 and beyond.
On April 30, 2021, the company announced an amendment to its normal course issuer bid to increase the number of common shares that it may purchase. Under the amendment, the number of common shares that may be purchased will increase to a maximum of 29,363,070 common shares during the period June 29, 2020 to June 28, 2021, which includes shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. No other provisions of the normal course issuer bid have changed. The company currently anticipates maximizing its share purchases under the program. Purchase plans may be modified at any time without prior notice.
 
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IMPERIAL OIL LIMITED
 
 
 
Forward-looking statements
Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans are forward-looking statements. Forward-looking statements can be identified by words such as believe, anticipate, intend, propose, plan, goal, seek, project, predict, target, estimate, expect, strategy, outlook, schedule, future, continue, likely, may, should, will and similar references to future periods. Forward-looking statements in this release include, but are not limited to, references to the use of derivative instruments and effectiveness of risk mitigation; signs of improvement emerging in the business environment through higher crude and gas prices and stronger downstream and chemical margins; and plans for purchases under the amended share purchase program.
Forward-looking statements are based on the company’s current expectations, estimates, projections and assumptions at the time the statements are made. Actual future financial and operating results, including expectations and assumptions concerning demand growth and energy source, supply and mix; commodity prices, foreign exchange rates and general market conditions; production rates, growth and mix; project plans, timing, costs, technical evaluations and capacities and the company’s ability to effectively execute on these plans and operate its assets; progression of
COVID-19
and its impacts on Imperial’s ability to operate its assets, including the possible shutdown of facilities due to
COVID-19
outbreaks; cash generation, financing sources and capital structure; and capital and environmental expenditures could differ materially depending on a number of factors. These factors include global, regional or local changes in supply and demand for oil, natural gas, and petroleum and petrochemical products and resulting price, differential and margin impacts, including foreign government action with respect to supply levels and prices and the impact of
COVID-19
on demand; availability and allocation of capital; political or regulatory events, including changes in law or government policy such as tax laws, production curtailment and actions in response to
COVID-19;
management effectiveness and disaster response preparedness, including business continuity plans in response to
COVID-19;
unanticipated technical or operational difficulties; project management and schedules and timely completion of projects; operational hazards and risks; currency exchange rates; general economic conditions; and other factors discussed in Item 1A risk factors and Item 7 management’s discussion and analysis of financial condition and results of operations of Imperial Oil Limited’s most recent annual report on Form
10-K.
Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Imperial. Imperial’s actual results may differ materially from those expressed or implied by its forward-looking statements and readers are cautioned not to place undue reliance on them. Imperial undertakes no obligation to update any forward-looking statements contained herein, except as required by applicable law.
The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.
 
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Item 3.
Quantitative and qualitative disclosures about market risk
Information about market risks for the three months ended March 31, 2021, does not differ materially from that discussed on page 32 of the company’s annual report on Form
10-K
for the year ended December 31, 2020.
 
Item 4.
Controls and procedures
As indicated in the certifications in Exhibit 31 of this report, the company’s principal executive officer and principal financial officer have evaluated the company’s disclosure controls and procedures as of March 31, 2021. Based on that evaluation, these officers have concluded that the company’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the company in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. There has not been any change in the company’s internal control over financial reporting during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting.
 
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IMPERIAL OIL LIMITED
 
 
 
PART II. OTHER INFORMATION
 
Item 1.
Legal proceedings
Imperial has elected to use a $1 million threshold for disclosing environmental proceedings.
 
Item 2.
Unregistered sales of equity securities and use of proceeds
Issuer purchases of equity securities
 
    
Total number of
shares purchased
    
Average price paid
per share
(Canadian dollars)
    
Total number of
shares purchased
as part of publicly
announced plans
or programs
    
Maximum number
of shares that may
yet be purchased
under the plans or
programs
(a)
 
 
 
January 2021
           
(January 1 - January 31)
  
 
-
 
  
 
-
 
  
 
-
 
  
 
43,025
 
February 2021
           
(February 1 - February 28)
  
 
-
 
  
 
-
 
  
 
-
 
  
 
43,025
 
March 2021
           
(March 1 - March 31)
  
 
-
 
  
 
-
 
  
 
-
 
  
 
43,025
 
 
 
(a)
On June 23, 2020, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a limited normal course issuer bid. The program was established primarily to eliminate dilution from shares issued in conjunction with Imperial’s restricted stock unit plan, and enabled the company to purchase up to a maximum of 50,000 common shares during the period June 29, 2020 to June 28, 2021. This maximum includes shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. As in the past, Exxon Mobil Corporation has advised the company that it intends to participate to maintain its ownership percentage at approximately 69.6 percent. The program will end should the company purchase the maximum allowable number of shares, or on June 28, 2021.
On April 30, 2021, the company announced an amendment to its normal course issuer bid to increase the number of common shares that it may purchase. Under the amendment, the number of common shares that may be purchased will increase to a maximum of 29,363,070 common shares during the period June 29, 2020 to June 28, 2021, which includes shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. No other provisions of the normal course issuer bid have changed. The company currently anticipates maximizing its share purchases under the program. Purchase plans may be modified at any time without prior notice.
The company will continue to evaluate its share purchase program in the context of its overall capital activities.
 
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Item 6.
Exhibits
 
(31.1) Certification by the principal executive officer of the company pursuant to Rule
13a-14(a).
 
(31.2) Certification by the principal financial officer of the company pursuant to Rule
13a-14(a).
 
(32.1) Certification by the chief executive officer of the company pursuant to Rule
13a-14(b)
and 18 U.S.C. Section 1350.
 
(32.2) Certification by the chief financial officer of the company pursuant to Rule
13a-14(b)
and 18 U.S.C. Section 1350.
 
(101) Interactive Data Files (formatted as Inline XBRL).
 
(104) Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
 
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SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
   
Imperial Oil Limited
(Registrant)
Date:    May 5, 2021    
/s/ Daniel E. Lyons
---------------------------------------------------
    (Signature)
    Daniel E. Lyons
   
Senior vice-president, finance and
administration, and controller
    (Principal accounting officer)
Date:    May 5, 2021    
/s/ Cathryn Walker
---------------------------------------------------
    (Signature)
    Cathryn Walker
    Assistant corporate secretary
 
 
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