10-Q 1 imo-20220930.htm 10-Q imo-20220930
FALSE2022Q3000004993812/31
(a) Amounts from related parties included in revenues.4,454 2,731 13,588 5,644 
(b) Amounts to related parties included in purchases of crude oil and products.1,086 828 2,865 2,009 
(c) Amounts to related parties included in production and manufacturing,
       and selling and general expenses.
120 95 354 317 
(d) Amounts to related parties included in financing, (note 5).28 45 25 
(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.(41)(43)(137)(113)
http://www.imperialoil.ca/20220930#LongTermDebtAndFinanceLeaseObligationshttp://www.imperialoil.ca/20220930#LongTermDebtAndFinanceLeaseObligations
00000499382022-01-012022-09-3000000499382022-09-30xbrli:shares00000499382022-07-012022-09-30iso4217:CAD00000499382021-07-012021-09-3000000499382021-01-012021-09-30iso4217:CADxbrli:shares00000499382021-12-310000049938imo:InvestmentsAndLongTermReceivablesMember2022-09-300000049938imo:InvestmentsAndLongTermReceivablesMember2021-12-310000049938imo:NoncurrentLiabilitiesMember2022-09-300000049938imo:NoncurrentLiabilitiesMember2021-12-310000049938us-gaap:CommonStockMember2022-06-300000049938us-gaap:CommonStockMember2021-06-300000049938us-gaap:CommonStockMember2021-12-310000049938us-gaap:CommonStockMember2020-12-310000049938us-gaap:CommonStockMember2022-07-012022-09-300000049938us-gaap:CommonStockMember2021-07-012021-09-300000049938us-gaap:CommonStockMember2022-01-012022-09-300000049938us-gaap:CommonStockMember2021-01-012021-09-300000049938us-gaap:CommonStockMember2022-09-300000049938us-gaap:CommonStockMember2021-09-300000049938us-gaap:RetainedEarningsMember2022-06-300000049938us-gaap:RetainedEarningsMember2021-06-300000049938us-gaap:RetainedEarningsMember2021-12-310000049938us-gaap:RetainedEarningsMember2020-12-310000049938us-gaap:RetainedEarningsMember2022-07-012022-09-300000049938us-gaap:RetainedEarningsMember2021-07-012021-09-300000049938us-gaap:RetainedEarningsMember2022-01-012022-09-300000049938us-gaap:RetainedEarningsMember2021-01-012021-09-300000049938us-gaap:RetainedEarningsMember2022-09-300000049938us-gaap:RetainedEarningsMember2021-09-300000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300000049938us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-3000000499382021-09-3000000499382022-06-3000000499382021-06-3000000499382020-12-310000049938imo:UpstreamMember2022-07-012022-09-300000049938imo:UpstreamMember2021-07-012021-09-300000049938imo:DownstreamMember2022-07-012022-09-300000049938imo:DownstreamMember2021-07-012021-09-300000049938imo:ChemicalMember2022-07-012022-09-300000049938imo:ChemicalMember2021-07-012021-09-300000049938imo:UpstreamMemberus-gaap:IntersegmentEliminationMember2022-07-012022-09-300000049938imo:UpstreamMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300000049938imo:DownstreamMemberus-gaap:IntersegmentEliminationMember2022-07-012022-09-300000049938imo:DownstreamMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300000049938imo:ChemicalMemberus-gaap:IntersegmentEliminationMember2022-07-012022-09-300000049938imo:ChemicalMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300000049938imo:UpstreamMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300000049938imo:UpstreamMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300000049938us-gaap:OperatingSegmentsMemberimo:DownstreamMember2022-07-012022-09-300000049938us-gaap:OperatingSegmentsMemberimo:DownstreamMember2021-07-012021-09-300000049938imo:ChemicalMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300000049938imo:ChemicalMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300000049938us-gaap:CorporateNonSegmentMember2022-07-012022-09-300000049938us-gaap:CorporateNonSegmentMember2021-07-012021-09-300000049938srt:ConsolidationEliminationsMember2022-07-012022-09-300000049938srt:ConsolidationEliminationsMember2021-07-012021-09-300000049938country:US2022-07-012022-09-300000049938country:US2021-07-012021-09-30xbrli:pure0000049938imo:DownstreamMember2021-09-300000049938imo:UpstreamMember2022-01-012022-09-300000049938imo:UpstreamMember2021-01-012021-09-300000049938imo:DownstreamMember2022-01-012022-09-300000049938imo:DownstreamMember2021-01-012021-09-300000049938imo:ChemicalMember2022-01-012022-09-300000049938imo:ChemicalMember2021-01-012021-09-300000049938imo:UpstreamMemberus-gaap:IntersegmentEliminationMember2022-01-012022-09-300000049938imo:UpstreamMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300000049938imo:DownstreamMemberus-gaap:IntersegmentEliminationMember2022-01-012022-09-300000049938imo:DownstreamMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300000049938imo:ChemicalMemberus-gaap:IntersegmentEliminationMember2022-01-012022-09-300000049938imo:ChemicalMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300000049938imo:UpstreamMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300000049938imo:UpstreamMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300000049938us-gaap:OperatingSegmentsMemberimo:DownstreamMember2022-01-012022-09-300000049938us-gaap:OperatingSegmentsMemberimo:DownstreamMember2021-01-012021-09-300000049938imo:ChemicalMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300000049938imo:ChemicalMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300000049938imo:UpstreamMember2022-09-300000049938imo:UpstreamMember2021-09-300000049938imo:DownstreamMember2022-09-300000049938imo:ChemicalMember2022-09-300000049938imo:ChemicalMember2021-09-300000049938us-gaap:CorporateNonSegmentMember2022-01-012022-09-300000049938us-gaap:CorporateNonSegmentMember2021-01-012021-09-300000049938srt:ConsolidationEliminationsMember2022-01-012022-09-300000049938srt:ConsolidationEliminationsMember2021-01-012021-09-300000049938us-gaap:CorporateNonSegmentMember2022-09-300000049938us-gaap:CorporateNonSegmentMember2021-09-300000049938srt:ConsolidationEliminationsMember2022-09-300000049938srt:ConsolidationEliminationsMember2021-09-300000049938country:US2022-01-012022-09-300000049938country:US2021-01-012021-09-300000049938imo:XtoEnergyCanadaMember2022-07-012022-09-300000049938us-gaap:PensionPlansDefinedBenefitMember2022-07-012022-09-300000049938us-gaap:PensionPlansDefinedBenefitMember2021-07-012021-09-300000049938us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-09-300000049938us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-09-300000049938us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-07-012022-09-300000049938us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-07-012021-09-300000049938us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-09-300000049938us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-09-300000049938imo:AmendmentToLongTermLinesOfCreditMemberimo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyThreeMember2022-06-300000049938imo:AmendmentToLongTermLinesOfCreditMemberimo:AmendedLineOfCreditFacilityForTwoHundredAndFiftyMillionDollarsOneMemberimo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyThreeMember2022-06-300000049938imo:AmendmentToLongTermLinesOfCreditMemberimo:AmendedLineOfCreditFacilityForTwoHundredAndFiftyMillionDollarsOneMemberimo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyThreeMember2022-01-012022-06-300000049938imo:AmendmentToLongTermLinesOfCreditMemberimo:AmendedLineOfCreditFacilityForTwoHundredAndFiftyMillionDollarsTwoMemberimo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyFourMember2022-06-300000049938imo:AmendmentToLongTermLinesOfCreditMemberimo:AmendedLineOfCreditFacilityForTwoHundredAndFiftyMillionDollarsTwoMemberimo:LineOfCreditFacilityDueJuneTwoThousandAndTwentyFourMember2022-01-012022-06-300000049938imo:AmendmentToLongTermLinesOfCreditMember2022-06-300000049938us-gaap:AccountsPayableAndAccruedLiabilitiesMember2022-09-300000049938us-gaap:AccountsPayableAndAccruedLiabilitiesMember2021-12-310000049938imo:CrudeBarrelsMember2022-01-012022-09-30utr:bbl0000049938imo:CrudeBarrelsMember2021-01-012021-12-310000049938imo:ProductsBarrelsMember2022-01-012022-09-300000049938imo:ProductsBarrelsMember2021-01-012021-12-310000049938us-gaap:FairValueInputsLevel1Member2022-09-300000049938us-gaap:FairValueInputsLevel2Member2022-09-300000049938us-gaap:FairValueInputsLevel3Member2022-09-300000049938imo:DerivativeFairValueOfDerivativeAmountEffectOfCounterPartyNettingMember2022-09-300000049938imo:DerivativeFairValueOfDerivativeAmountEffectOfCollateralNettingMember2022-09-300000049938imo:NetCarryingValueMember2022-09-300000049938us-gaap:FairValueInputsLevel1Member2021-12-310000049938us-gaap:FairValueInputsLevel2Member2021-12-310000049938us-gaap:FairValueInputsLevel3Member2021-12-310000049938imo:DerivativeFairValueOfDerivativeAmountEffectOfCounterPartyNettingMember2021-12-310000049938imo:DerivativeFairValueOfDerivativeAmountEffectOfCollateralNettingMember2021-12-310000049938imo:NetCarryingValueMember2021-12-310000049938imo:MasterNettingArrangementsMember2022-09-300000049938imo:MasterNettingArrangementsMember2021-12-3100000499382022-06-292022-06-290000049938imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember2022-06-290000049938imo:ExonnMobileCorporationMemberimo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember2022-06-152022-06-150000049938imo:ExonnMobileCorporationMemberimo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember2022-06-2900000499382022-05-062022-05-060000049938imo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember2022-06-152022-06-150000049938imo:ExonnMobileCorporationMemberimo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember2022-05-020000049938imo:ExonnMobileCorporationMemberimo:NormalCourseIssuerBidEffectiveFromJuneTwentyNinthTwoThousandAndTwentyTwoMember2022-06-150000049938us-gaap:SubsequentEventMember2022-10-282022-10-280000049938us-gaap:SubsequentEventMemberimo:ExonnMobileCorporationMember2022-10-280000049938us-gaap:CommonStockMember2021-01-012021-12-310000049938us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310000049938us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310000049938us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-09-300000049938us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-09-300000049938us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-09-300000049938us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-09-300000049938imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember2022-07-012022-09-300000049938imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember2021-07-012021-09-300000049938imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember2022-01-012022-09-300000049938imo:AccumulatedDefinedBenefitPlansAdjustmentBeforeTaxMember2021-01-012021-09-300000049938imo:WhiteCapIncMemberimo:XtoEnergyCanadaMemberimo:ExxonMobilCanadaMember2022-08-310000049938imo:WhiteCapIncMemberimo:CompaniesShareMemberimo:XtoEnergyCanadaMember2022-08-310000049938imo:WhiteCapIncMemberimo:CompaniesShareMemberimo:XtoEnergyCanadaMember2022-08-312022-08-310000049938imo:XtoEnergyCanadaMemberimo:ExxonMobilCanadaMember2022-08-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
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 (I.R.S. Employer
of incorporation or organization) Identification No.)
505 Quarry Park Boulevard S.E. Calgary, Alberta, Canada
 T2C 5N1
(Address of principal executive offices) (Postal Code)
1-800-567-3776
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol
Name of each exchange on
which registered
NoneNone
Indicate by check mark whether 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
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes
 ✓
No
Indicate by check mark whether 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. ___
Indicate by check mark whether 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 September 30, 2022 was 611,515,571.



IMPERIAL OIL LIMITED
Table of contents
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, 2021. 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


IMPERIAL OIL LIMITED
PART I. FINANCIAL INFORMATION
Item 1. Financial statements
Consolidated statement of income (U.S. GAAP, unaudited)
 
        Third Quarter
       Nine Months
       to September 30
millions of Canadian dollars2022 2021 2022 2021 
Revenues and other income  
Revenues (a)
15,071 10,214 45,013 25,213 
Investment and other income (note 3, 11)
153 19 204 65 
Total revenues and other income15,224 10,233 45,217 25,278 
 
Expenses  
Exploration1 2 4 6 
Purchases of crude oil and products (b)
9,478 6,298 28,849 15,052 
Production and manufacturing (c)
1,872 1,525 5,439 4,579 
Selling and general (c)
209 180 625 569 
Federal excise tax and fuel charge584 535 1,616 1,404 
Depreciation and depletion555 488 1,432 1,432 
Non-service pension and postretirement benefit4 11 13 32 
Financing (d) (note 5)
16 5 34 32 
Total expenses12,719 9,044 38,012 23,106 
 
Income (loss) before income taxes2,505 1,189 7,205 2,172 
Income taxes474 281 1,592 506 
Net income (loss)2,031 908 5,613 1,666 
Per share information (Canadian dollars)
 
Net income (loss) per common share - basic (note 9)
3.25 1.30 8.60 2.32 
Net income (loss) per common share - diluted (note 9)
3.24 1.29 8.58 2.31 
(a) Amounts from related parties included in revenues.4,454 2,731 13,588 5,644 
(b) Amounts to related parties included in purchases of crude oil and products.1,086 828 2,865 2,009 
(c) Amounts to related parties included in production and manufacturing,
       and selling and general expenses.
120 95 354 317 
(d) Amounts to related parties included in financing, (note 5).
28 4 45 25 
The information in the notes to consolidated financial statements is an integral part of these statements.

3


IMPERIAL OIL LIMITED
Consolidated statement of comprehensive income (U.S. GAAP, unaudited)
 
        Third Quarter
        Nine Months
        to September 30
millions of Canadian dollars2022 2021 2022 2021 
Net income (loss)2,031 908 5,613 1,666 
Other comprehensive income (loss), net of income taxes  
Postretirement benefits liability adjustment (excluding amortization)  24 54 
Amortization of postretirement benefits liability adjustment
       included in net benefit costs
21 33 63 99 
Total other comprehensive income (loss)21 33 87 153 
Comprehensive income (loss)2,052 941 5,700 1,819 
The information in the notes to consolidated financial statements is an integral part of these statements.
4


IMPERIAL OIL LIMITED
Consolidated balance sheet (U.S. GAAP, unaudited)
millions of Canadian dollars
As at
Sept 30
2022
As at
Dec 31
2021
Assets  
Current assets  
Cash and cash equivalents3,576 2,153 
Accounts receivable - net (a)
5,179 3,869 
Inventories of crude oil and products1,495 1,102 
Materials, supplies and prepaid expenses755 689 
Total current assets11,005 7,813 
Investments and long-term receivables (b)
883 757 
Property, plant and equipment,53,763 56,762 
less accumulated depreciation and depletion(23,750)(25,522)
Property, plant and equipment, net (note 11)
30,013 31,240 
Goodwill166 166 
Other assets, including intangibles - net919 806 
Total assets42,986 40,782 
Liabilities  
Current liabilities  
Notes and loans payable122 122 
Accounts payable and accrued liabilities (a) (note 7)
6,498 5,184 
Income taxes payable2,314 248 
Total current liabilities8,934 5,554 
Long-term debt (c) (note 6)
4,038 5,054 
Other long-term obligations (note 7)
3,428 3,897 
Deferred income tax liabilities4,278 4,542 
Total liabilities20,678 19,047 
Shareholders’ equity  
Common shares at stated value (d) (note 9)
1,129 1,252 
Earnings reinvested22,269 21,660 
Accumulated other comprehensive income (loss) (note 10)
(1,090)(1,177)
Total shareholders’ equity22,308 21,735 
 
Total liabilities and shareholders’ equity42,986 40,782 
(a) Accounts receivable - net included net amounts receivable from related parties of $1,534 million (2021 - $1,031 million).
(b) Investments and long-term receivables included amounts from related parties of $289 million (2021 - $298 million).
(c) Long-term debt included amounts to related parties of $3,447 million (2021 - $4,447 million).
(d) Number of common shares authorized and outstanding were 1,100 million and 612 million, respectively (2021 - 1,100 million and 678 million, respectively).
The information in the notes to consolidated financial statements is an integral part of these statements.
   
5


IMPERIAL OIL LIMITED
Consolidated statement of shareholders’ equity (U.S. GAAP, unaudited)
 
        Third Quarter
        Nine Months
        to September 30
millions of Canadian dollars2022 2021 2022 2021 
Common shares at stated value (note 9)
  
At beginning of period1,177 1,302 1,252 1,357 
Share purchases at stated value(48)(16)(123)(71)
At end of period1,129 1,286 1,129 1,286 
Earnings reinvested
At beginning of period21,913 21,336 21,660 22,050 
Net income (loss) for the period2,031 908 5,613 1,666 
Share purchases in excess of stated value(1,464)(297)(4,338)(1,413)
Dividends declared(211)(188)(666)(544)
At end of period22,269 21,759 22,269 21,759 
 
Accumulated other comprehensive income (loss) (note 10)
  
At beginning of period(1,111)(1,869)(1,177)(1,989)
Other comprehensive income (loss)21 33 87 153 
At end of period(1,090)(1,836)(1,090)(1,836)
Shareholders’ equity at end of period22,308 21,209 22,308 21,209 
The information in the notes to consolidated financial statements is an integral part of these statements.

6


IMPERIAL OIL LIMITED
Consolidated statement of cash flows (U.S. GAAP, unaudited)
Inflow (outflow)
        Third Quarter
        Nine Months
        to September 30
millions of Canadian dollars
2022 2021 2022 2021 
Operating activities  
Net income (loss)2,031 908 5,613 1,666 
Adjustments for non-cash items:
Depreciation and depletion555 488 1,432 1,432 
(Gain) loss on asset sales (note 3, 11)
(131)(12)(155)(39)
Deferred income taxes and other122 (120)(358)16 
Changes in operating assets and liabilities:  
Accounts receivable1,648 (708)(1,322)(1,952)
Inventories, materials, supplies and prepaid expenses(70)(199)(461)(300)
Income taxes payable296 227 1,608 269 
Accounts payable and accrued liabilities(1,328)1,123 1,315 2,362 
All other items - net (b)
(34)240 13 390 
Cash flows from (used in) operating activities3,089 1,947 7,685 3,844 
 
Investing activities  
Additions to property, plant and equipment(397)(276)(1,034)(684)
Proceeds from asset sales (note 3, 11)
760 15 886 57 
Additional investments(6) (6) 
Loans to equity companies - net7 2 9 14 
Cash flows from (used in) investing activities364 (259)(145)(613)
Financing activities  
Short-term debt - net (75) (111)
Long-term debt - reductions (note 6)
(1,000) (1,000) 
Reduction in finance lease obligations (note 6)
(5)(6)(16)(14)
Dividends paid(227)(195)(640)(518)
Common shares purchased (note 9)
(1,512)(313)(4,461)(1,484)
Cash flows from (used in) financing activities(2,744)(589)(6,117)(2,127)
 
Increase (decrease) in cash709 1,099 1,423 1,104 
Cash at beginning of period2,867 776 2,153 771 
Cash at end of period (a)
3,576 1,875 3,576 1,875 
(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.(41)(43)(137)(113)
 
Income taxes (paid) refunded.(64)32 (339)60 
Interest (paid), net of capitalization.(19)(5)(41)(32)
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 2021 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 nine months ended September 30, 2022, are not necessarily indicative of the operations to be expected for the full year.
All amounts are in Canadian dollars unless otherwise indicated.
8


IMPERIAL OIL LIMITED

2. Business segments
Third Quarter
       Upstream
       Downstream
        Chemical
millions of Canadian dollars202220212022202120222021
Revenues and other income
Revenues (a) (b)
1561,01514,5378,813378386
Intersegment sales (c)
4,6653,1371,69336614291
Investment and other income (note 3, 11)
128618
 4,9494,15216,2369,197520477
Expenses      
Exploration12
Purchases of crude oil and products (c)
1,9371,90213,6867,745354244
Production and manufacturing1,3811,1204193567249
Selling and general1741411721
Federal excise tax and fuel charge5835351
Depreciation and depletion501439443944
Non-service pension and postretirement benefit
Financing (note 5)
Total expenses3,8203,46314,9068,816448318
Income (loss) before income taxes1,1296891,33038172159
Income tax expense (benefit)143165318881838
Net income (loss) (c)
9865241,01229354121
Cash flows from (used in) operating activities (c)
1,2802,5081,532(733)109157
Capital and exploration expenditures (d)
3091516412022
Third Quarter
Corporate and other
       Eliminations
        Consolidated
millions of Canadian dollars202220212022202120222021
Revenues and other income
Revenues (a) (b)
15,07110,214
Intersegment sales (c)
(6,500)(3,594)
Investment and other income (note 3, 11)
19115319
 191(6,500)(3,594)15,22410,233
Expenses      
Exploration12
Purchases of crude oil and products (c)
(6,499)(3,593)9,4786,298
Production and manufacturing1,8721,525
Selling and general1919(1)(1)209180
Federal excise tax and fuel charge584535
Depreciation and depletion66555488
Non-service pension and postretirement benefit411411
Financing (note 5)
165165
Total expenses4541(6,500)(3,594)12,7199,044
Income (loss) before income taxes(26)(40)2,5051,189
Income tax expense (benefit)(5)(10)474281
Net income (loss) (c)
(21)(30)2,031908
Cash flows from (used in) operating activities (c)
168153,0891,947
Capital and exploration expenditures (d)
174392277




9


IMPERIAL OIL LIMITED

(a)Included export sales to the United States of $3,176 million (2021 - $1,803 million).
(b)Includes approximately 13% and 10% related to revenue outside the scope of ASC 606 “Revenue from Contracts with Customers” for the three months ended September 30, 2022 and September 30, 2021, respectively. Trade receivables in Accounts receivable – net reported on the Balance Sheet include both receivables within the scope of ASC 606 and those outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives. Credit quality and type of customer are generally similar between those revenues and receivables within the scope of ASC 606 and those outside it.
(c)In the third quarter of 2021, the Downstream segment acquired a portion of Upstream crude inventory for $444 million. There was no earnings impact and the effects of this transaction have been eliminated for consolidation purposes.
(d)Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions and the company’s share of similar costs for equity companies. CAPEX excludes the purchase of carbon emission credits.
10


IMPERIAL OIL LIMITED

Nine Months to September 30
        Upstream
        Downstream
       Chemical
millions of Canadian dollars202220212022202120222021
Revenues and other income
Revenues (a) (b)
374 5,773 43,480 18,355 1,159 1,085 
Intersegment sales (c)
14,923 5,800 5,550 1,927 395 223 
Investment and other income (note 3, 11)
135 6 36 51  1 
15,432 11,579 49,066 20,333 1,554 1,309 
Expenses
Exploration4 6     
Purchases of crude oil and products (c)
6,184 5,780 42,459 16,525 1,070 693 
Production and manufacturing4,053 3,395 1,193 1,039 193 145 
Selling and general  474 416 62 68 
Federal excise tax and fuel charge  1,615 1,404 1  
Depreciation and depletion1,269 1,283 130 117 13 13 
Non-service pension and postretirement benefit      
Financing (note 5)
1 1     
Total expenses11,511 10,465 45,871 19,501 1,339 919 
Income (loss) before income taxes3,921 1,114 3,195 832 215 390 
Income tax expense (benefit)807 264 761 187 52 93 
Net income (loss) (c)
3,114 850 2,434 645 163 297 
Cash flows from (used in) operating activities (c)
4,814 3,634 2,548 (135)240 330 
Capital and exploration expenditures (d)
764 366 201 308 5 6 
Total assets as at September 30 (c) (note 11)
28,099 29,540 9,972 8,239 482 488 
Nine Months to September 30
Corporate and other
       Eliminations
        Consolidated
millions of Canadian dollars202220212022202120222021
Revenues and other income
Revenues (a) (b)
   — 45,013 25,213 
Intersegment sales (c)
 — (20,868)(7,950) — 
Investment and other income (note 3, 11)
33 7  — 204 65 
33 7 (20,868)(7,950)45,217 25,278 
Expenses
Exploration    4 6 
Purchases of crude oil and products (c)
  (20,864)(7,946)28,849 15,052 
Production and manufacturing    5,439 4,579 
Selling and general93 89 (4)(4)625 569 
Federal excise tax and fuel charge    1,616 1,404 
Depreciation and depletion20 19   1,432 1,432 
Non-service pension and postretirement benefit13 32   13 32 
Financing (note 5)
33 31   34 32 
Total expenses159 171 (20,868)(7,950)38,012 23,106 
Income (loss) before income taxes(126)(164)