- Quarterly net income of $1,225 million
- Cash flows from operating activities of $1,789 million and cash flows from operating activities excluding working capital1 of $1,650 million
- Kearl quarterly production of 299,000 total gross oil-equivalent barrels per day (212,000 barrels Imperial's share), and highest-ever full year total gross production of 281,000 barrels per day (200,000 barrels Imperial's share)
- Cold Lake quarterly production of 157,000 gross oil-equivalent barrels per day and full year production of 148,000 barrels per day, supported by strong Grand Rapids performance
- Quarterly Upstream production of 460,000 gross oil-equivalent barrels per day, and highest annual production in over 30 years of 433,000 barrels per day
- Strong Downstream operating performance with refinery capacity utilization of 95 percent for the quarter and 92 percent for the year, at the high end of guidance
- Returned nearly $1.8 billion to shareholders in the quarter through share buybacks and dividends
- Quarterly dividend increased by 20 percent from 60 cents to 72 cents per share
Net income (loss) (U.S. GAAP)
Fourth quarter
2024: 1,225
2023: 1,365
?I: (140)
Twelve months
2024: 4,790
2023: 4,889
?I: (99)
Net income (loss) per common share, assuming dilution (dollars)
Fourth quarter
2024: 2.37
2023: 2.47
?I: (0.10)
Twelve months
2024: 9.03
2023: 8.49
?I: +0.54
Capital and exploration expenditures
Fourth quarter
2024: 423
2023: 469
?I: (46)
Twelve months
2024: 1,867
2023: 1,778
?I: +89
Imperial reported estimated net income in the fourth quarter of $1,225 million, compared to net income of $1,237 million in the third quarter of 2024, primarily due to lower realizations, partially offset by higher production and stronger Downstream refinery capacity utilization. Quarterly cash flows from operating activities were $1,789 million, up from $1,487 million generated in the third quarter of 2024. Excluding the impact of working capital1, cash flows from operating activities were $1,650 million, compared to $1,797 million in the third quarter of 2024. Full year estimated net income was $4,790 million with cash flows from operating activities of $5,981 million. Excluding the impacts of working capital1, full-year cash flows from operating activities were $6,476 million.
“Our robust financial results in 2024 were driven by outstanding operational performance. I'm proud of Imperial's ability to deliver on all of its 2024 volume commitments including a new annual production record at Kearl. Downstream and Cold Lake performances were both at the upper end of our guidance, which was supported by excellent turnaround execution and strong Grand Rapids production,” said Brad Corson, chairman, president and chief executive officer.
Upstream production in the fourth quarter averaged 460,000 gross oil-equivalent barrels per day, which is the highest quarterly production in over 30 years when adjusting for the divestment of XTO Energy Canada. The fourth-quarter performance contributed to the company's highest annual production of 433,000 gross oil-equivalent barrels per day in over 30 years. At Kearl, quarterly total gross production averaged 299,000 barrels per day (212,000 barrels Imperial's share), contributing to a full year production record of 281,000 total gross barrels per day (200,000 barrels Imperial's share) at unit cash costs1 below the company's previously stated target. Cold Lake quarterly gross production averaged 157,000 barrels per day, including better-than-expected production of 22,000 barrels per day of solvent-assisted SAGD production from Grand Rapids. The company's share of Syncrude quarterly production averaged 81,000 gross barrels per day.
Downstream throughput in the quarter averaged 411,000 barrels per day, resulting in an overall refinery capacity utilization of 95 percent, even with the completion of the Nanticoke turnaround. Petroleum product sales averaged 458,000 barrels per day. Full-year throughput achieved the high end of the company's 2024 guidance range, averaging 399,000 barrels per day, with capacity utilization of 92 percent and petroleum product sales of 466,000 barrels per day. Construction continued on Canada’s largest renewable diesel facility at the Strathcona refinery, with a targeted start-up date in the middle of 2025.
During the quarter, Imperial returned a total of nearly $1.8 billion to shareholders through dividend payments and accelerated share repurchases under the company's annual normal course issuer bid program. The company is also announcing a first quarter dividend increase of 12 cents per share to 72 cents per share.
“Our 20% increase in the dividend reflects confidence in our plans as we enter 2025 with strong operational momentum underpinned by Upstream production growth, strong Downstream utilization and a continued focus on expense reduction,” said Corson.
Fourth quarter highlights
- Net income of $1,225 million or $2.37 per share on a diluted basis, compared to $1,365 million or $2.47 per share in the fourth quarter of 2023.
- Cash flows from operating activities of $1,789 million, up from cash flows from operating activities of $1,311 million in the fourth quarter of 2023. Cash flows from operating activities excluding working capital1 of $1,650 million, compared to $1,799 million in the fourth quarter of 2023.
- Capital and exploration expenditures totaled $423 million, compared to $469 million in the fourth quarter of 2023.
- The company returned $1,792 million to shareholders in the fourth quarter of 2024, including $317 million in dividends paid and $1,475 million with the successful completion of its accelerated share repurchases.
- Production averaged 460,000 gross oil-equivalent barrels per day, the highest quarterly production in over 30 years when adjusting for the divestment of XTO Energy Canada, up from 452,000 gross oil-equivalent barrels per day in the fourth quarter of 2023, primarily driven by Grand Rapids.
- Total gross bitumen production at Kearl averaged 299,000 barrels per day (212,000 barrels Imperial's share), compared to 308,000 barrels per day (218,000 barrels Imperial's share) in the fourth quarter of 2023.
- Gross bitumen production at Cold Lake averaged 157,000 barrels per day, up from 139,000 barrels per day in the fourth quarter of 2023, mainly driven by Grand Rapids.
- Leming SAGD redevelopment project remains on track with expected start up in late 2025 with peak production anticipated to be around 9,000 barrels per day.
- The company's share of gross production from Syncrude averaged 81,000 barrels per day, compared to 85,000 barrels per day in the fourth quarter of 2023.
- Refinery throughput averaged 411,000 barrels per day, up from 407,000 barrels per day in the fourth quarter of 2023. Capacity utilization was 95 percent, up from 94 percent in the fourth quarter of 2023.
- Petroleum product sales were 458,000 barrels per day, compared to 476,000 barrels per day in the fourth quarter of 2023, primarily driven by lower wholesale volume.
- Construction continued on Canada’s largest renewable diesel facility at the Strathcona refinery, with a targeted start-up date in the middle of 2025.
- Chemical net income of $21 million in the quarter, up from $17 million in the fourth quarter of 2023.
Recent business environment
During the fourth quarter, crude prices decreased versus the third quarter, reflecting uncertainty in supply and demand balances. The Canadian WTI/WCS spread remained consistent with the third quarter, and the full-year average was narrower versus the 2023 full-year average. Industry refining margins declined versus the third quarter due to increased supply.
