Energy giant Imperial Oil is reporting estimated full-year 2019 net income was $2.2 billion, including fourth quarter results of $271million.
The company said in a news release that 2019 results include a favourable impact, largely non-cash, of $662 million associated with the Alberta corporate income tax rate decrease enacted in June.
“The year was characterized by strong volume performance in the upstream, with Kearl’s gross production in excess of 200,000 barrels per day for the second year in a row and Syncrude’s highest annual production in nearly a decade. In the downstream, refinery throughput and petroleum product sales were impacted by significant planned turnaround activities and the fractionation tower incident at Sarnia,” said the company.
“Overall upstream gross oil-equivalent production averaged 398,000 barrels per day in 2019, with total liquids production of 374,000 barrels per day for the year, each at their highest levels in over 25 years. Kearl’s total gross production for 2019 averaged 205,000 barrels per day.
“Consistent with plans, Kearl’s supplemental crushing facilities became operational and are expected to further improve reliability, reduce planned downtime, lower unit costs and enable the asset to achieve 240,000 barrels per day of total gross production in 2020.”
Brad Corson, the company’s chairman, president and chief executive officer, said 2019 was a year of significant change for the industry.
“Against this backdrop, Imperial’s results demonstrate the strength and resilience of the company’s balanced and integrated business model, with cash generated from operating activities totalling $4.4 billion for 2019, the highest in over five years,” he said.
“Recent investments in growth, reliability, and cost and margin improvement provide a strong foundation for Imperial to continue to grow dividends and deliver value to our shareholders. I am excited for the opportunity to build upon Imperial’s strengths and lead the company into the new decade.”
Mario Toneguzzi is a business reporter in Calgary.
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