þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
CANADA
|
98-0017682 | |
(State
or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
237 Fourth Avenue S.W. |
||
Calgary, Alberta, Canada
|
T2P 3M9 | |
(Address of principal executive offices)
|
(Postal Code) |
Large accelerated filer þ
|
Accelerated filer o | |
Non-accelerated filer o
|
Smaller reporting company o |
PAGE | ||||
PART I Financial Information |
||||
Item 1 - Financial Statements. |
||||
Consolidated Statement of Income - Three months ended June 30, 2008 and 2007 Six months ended June 30, 2008 and 2007 |
3 | |||
Consolidated Statement of Cash Flows - Three months ended June 30, 2008 and 2007 Six months ended June 30, 2008 and 2007 |
4 | |||
Consolidated Balance Sheet - As at June 30, 2008 and December 31, 2007 |
5 | |||
Notes to the Consolidated Financial Statements |
6 | |||
Item 2 - Managements Discussion and Analysis of Financial
Condition and Results of Operations. |
12 | |||
Item 3 - Quantitative and Qualitative Disclosures about Market Risk. |
15 | |||
Item 4 - Controls and Procedures. |
15 | |||
PART II Other Information |
||||
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds. |
16 | |||
Item 6 - Exhibits. |
17 | |||
SIGNATURES |
17 |
-2-
Item 1. | Financial Statements. |
Six months | ||||||||||||||||
Second quarter | to June 30 | |||||||||||||||
millions of Canadian dollars | 2008 | 2007 | 2008 | 2007 | ||||||||||||
REVENUES AND OTHER INCOME |
||||||||||||||||
Operating revenues (a)(b) |
8,618 | 6,299 | 15,849 | 12,066 | ||||||||||||
Investment and other income (4) |
241 | 40 | 273 | 207 | ||||||||||||
TOTAL REVENUES AND OTHER INCOME |
8,859 | 6,339 | 16,122 | 12,273 | ||||||||||||
EXPENSES |
||||||||||||||||
Exploration |
17 | 43 | 57 | 71 | ||||||||||||
Purchases of crude oil and products (c) |
5,312 | 3,470 | 9,808 | 6,623 | ||||||||||||
Production and manufacturing (5)(d) |
1,114 | 888 | 2,091 | 1,734 | ||||||||||||
Selling and general (5) |
324 | 385 | 619 | 671 | ||||||||||||
Federal excise tax (a) |
328 | 324 | 640 | 629 | ||||||||||||
Depreciation and depletion |
181 | 198 | 362 | 387 | ||||||||||||
Financing costs (6)(e) |
| 11 | (3 | ) | 23 | |||||||||||
TOTAL EXPENSES |
7,276 | 5,319 | 13,574 | 10,138 | ||||||||||||
INCOME BEFORE INCOME TAXES |
1,583 | 1,020 | 2,548 | 2,135 | ||||||||||||
INCOME TAXES |
435 | 308 | 719 | 649 | ||||||||||||
NET INCOME (3) |
1,148 | 712 | 1,829 | 1,486 | ||||||||||||
NET INCOME PER COMMON SHARE BASIC (dollars) (8) |
1.29 | 0.76 | 2.05 | 1.58 | ||||||||||||
NET INCOME PER COMMON SHARE DILUTED (dollars) (8) |
1.28 | 0.76 | 2.03 | 1.57 | ||||||||||||
DIVIDENDS PER COMMON SHARE (dollars) |
0.09 | 0.09 | 0.18 | 0.17 | ||||||||||||
(a) Federal excise tax included in operating revenues |
328 | 324 | 640 | 629 | ||||||||||||
(b) Amounts from related parties included in operating revenues |
628 | 407 | 1,219 | 846 | ||||||||||||
(c) Amounts to related parties included in purchases of crude oil and products |
1,250 | 837 | 2,509 | 1,491 | ||||||||||||
(d) Amounts to related parties included in production and manufacturing expenses |
43 | 50 | 90 | 93 | ||||||||||||
(e) Amounts to related parties included in financing costs |
(1 | ) | 8 | (1 | ) | 17 |
-3-
Six months | ||||||||||||||||
inflow/(outflow) | Second quarter | to June 30 | ||||||||||||||
millions of Canadian dollars | 2008 | 2007 | 2008 | 2007 | ||||||||||||
OPERATING ACTIVITIES |
||||||||||||||||
Net income |
1,148 | 712 | 1,829 | 1,486 | ||||||||||||
Adjustment for non-cash items: |
||||||||||||||||
Depreciation and depletion |
181 | 198 | 362 | 387 | ||||||||||||
(Gain)/loss on asset sales (4) |
(221 | ) | (8 | ) | (232 | ) | (101 | ) | ||||||||
Deferred income taxes and other |
(177 | ) | (20 | ) | (242 | ) | 51 | |||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Accounts receivable |
(366 | ) | (116 | ) | (764 | ) | (232 | ) | ||||||||
Inventories and prepaids |
103 | 71 | (469 | ) | (198 | ) | ||||||||||
Income taxes payable |
370 | 16 | 359 | (408 | ) | |||||||||||
Accounts payable |
479 | 210 | 1,063 | 480 | ||||||||||||
All other items net (a) |
(61 | ) | 62 | (152 | ) | (65 | ) | |||||||||
CASH FROM
(USED IN) OPERATING ACTIVITIES |
1,456 | 1,125 | 1,754 | 1,400 | ||||||||||||
INVESTING ACTIVITIES |
||||||||||||||||
Additions to property, plant and equipment and intangibles |
(291 | ) | (184 | ) | (551 | ) | (372 | ) | ||||||||
Proceeds from asset sales |
228 | 17 | 241 | 186 | ||||||||||||
Loans to equity company |
(2 | ) | (1 | ) | (2 | ) | (1 | ) | ||||||||
CASH FROM (USED IN) INVESTING ACTIVITIES |
(65 | ) | (168 | ) | (312 | ) | (187 | ) | ||||||||
FINANCING ACTIVITIES |
||||||||||||||||
Short-term debt net |
| 405 | | 405 | ||||||||||||
Repayment of long-term debt |
| (654 | ) | | (654 | ) | ||||||||||
Long-term debt issued |
| 250 | | 250 | ||||||||||||
Reduction in capitalized lease obligations |
(1 | ) | | (2 | ) | (1 | ) | |||||||||
Issuance of common shares under stock option plan |
2 | 7 | 6 | 9 | ||||||||||||
Common shares purchased (8) |
(606 | ) | (622 | ) | (1,196 | ) | (1,191 | ) | ||||||||
Dividends paid |
(81 | ) | (76 | ) | (163 | ) | (152 | ) | ||||||||
CASH FROM (USED IN) FINANCING ACTIVITIES |
(686 | ) | (690 | ) | (1,355 | ) | (1,334 | ) | ||||||||
INCREASE (DECREASE) IN CASH |
705 | 267 | 87 | (121 | ) | |||||||||||
CASH AT BEGINNING OF PERIOD |
590 | 1,770 | 1,208 | 2,158 | ||||||||||||
CASH AT END OF PERIOD |
1,295 | 2,037 | 1,295 | 2,037 | ||||||||||||
(a) Includes contribution to registered pension plans |
(6 | ) | (6 | ) | (153 | ) | (153 | ) |
-4-
As at | As at | |||||||
June 30 | Dec. 31 | |||||||
millions of Canadian dollars | 2008 | 2007 | ||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash |
1,295 | 1,208 | ||||||
Accounts receivable, less estimated doubtful accounts |
2,898 | 2,132 | ||||||
Inventories of crude oil and products |
865 | 566 | ||||||
Materials, supplies and prepaid expenses |
298 | 128 | ||||||
Deferred income tax assets |
944 | 660 | ||||||
Total current assets |
6,300 | 4,694 | ||||||
Long-term receivables, investments and other long-term assets |
860 | 766 | ||||||
Property, plant and equipment, |
23,423 | 22,962 | ||||||
less accumulated depreciation and depletion |
12,677 | 12,401 | ||||||
Property, plant and equipment, net |
10,746 | 10,561 | ||||||
Goodwill |
204 | 204 | ||||||
Other intangible assets, net |
61 | 62 | ||||||
TOTAL ASSETS |
18,171 | 16,287 | ||||||
LIABILITIES |
||||||||
Current liabilities |
||||||||
Short-term debt |
105 | 105 | ||||||
Accounts payable and accrued liabilities (7)(a) |
4,398 | 3,335 | ||||||
Income taxes payable |
1,857 | 1,498 | ||||||
Current portion of capitalized lease obligations |
3 | 3 | ||||||
Total current liabilities |
6,363 | 4,941 | ||||||
Capitalized lease obligations |
36 | 38 | ||||||
Other long-term obligations (7) |
1,946 | 1,914 | ||||||
Deferred income tax liabilities |
1,488 | 1,471 | ||||||
TOTAL LIABILITIES |
9,833 | 8,364 | ||||||
SHAREHOLDERS EQUITY |
||||||||
Common shares at stated value (8)(b) |
1,568 | 1,600 | ||||||
Earnings reinvested (9) |
7,581 | 7,071 | ||||||
Accumulated other comprehensive income (10) |
(811 | ) | (748 | ) | ||||
TOTAL SHAREHOLDERS EQUITY |
8,338 | 7,923 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
18,171 | 16,287 | ||||||
(a) | Accounts payable and accrued liabilities include amounts to related parties of $453 million (2007 $260 million). | |
(b) | Number of common shares outstanding was 882 million (2007 903 million). |
-5-
1. | Basis of financial statement presentation |
2. | Accounting changes |
-6-
3. | Business segments |
Second quarter | Upstream | Downstream | Chemical | |||||||||||||||||||||
millions of dollars | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||
REVENUES AND OTHER INCOME |
||||||||||||||||||||||||
External sales (a) |
1,836 | 1,210 | 6,401 | 4,764 | 381 | 325 | ||||||||||||||||||
Intersegment sales |
1,554 | 832 | 892 | 551 | 141 | 91 | ||||||||||||||||||
Investment and other income |
5 | 5 | 228 | 14 | | | ||||||||||||||||||
3,395 | 2,047 | 7,521 | 5,329 | 522 | 416 | |||||||||||||||||||
EXPENSES |
||||||||||||||||||||||||
Exploration (b) |
17 | 43 | | | | | ||||||||||||||||||
Purchases of crude oil and products |
1,261 | 706 | 6,209 | 3,921 | 429 | 317 | ||||||||||||||||||
Production and manufacturing |
675 | 527 | 382 | 313 | 57 | 48 | ||||||||||||||||||
Selling and general |
1 | 2 | 243 | 244 | 19 | 17 | ||||||||||||||||||
Federal excise tax |
| | 328 | 324 | | | ||||||||||||||||||
Depreciation and depletion |
118 | 134 | 59 | 60 | 3 | 2 | ||||||||||||||||||
Financing costs |
| 1 | (1 | ) | 1 | | | |||||||||||||||||
TOTAL EXPENSES |
2,072 | 1,413 | 7,220 | 4,863 | 508 | 384 | ||||||||||||||||||
INCOME BEFORE INCOME TAXES |
1,323 | 634 | 301 | 466 | 14 | 32 | ||||||||||||||||||
INCOME TAXES |
385 | 174 | 62 | 152 | 4 | 10 | ||||||||||||||||||
NET INCOME |
938 | 460 | 239 | 314 | 10 | 22 | ||||||||||||||||||
Export sales to the United States |
915 | 547 | 368 | 280 | 230 | 185 | ||||||||||||||||||
Cash flows from (used in) operating activities |
1,054 | 675 | 417 | 491 | 18 | (7 | ) | |||||||||||||||||
CAPEX (b) |
241 | 140 | 63 | 48 | 2 | 3 |
Corporate | ||||||||||||||||||||||||
Second quarter | and Other | Eliminations | Consolidated | |||||||||||||||||||||
millions of dollars | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||
REVENUES AND OTHER INCOME |
||||||||||||||||||||||||
External sales (a) |
| | | | 8,618 | 6,299 | ||||||||||||||||||
Intersegment sales |
| | (2,587 | ) | (1,474 | ) | | | ||||||||||||||||
Investment and other income |
8 | 21 | | | 241 | 40 | ||||||||||||||||||
8 | 21 | (2,587 | ) | (1,474 | ) | 8,859 | 6,339 | |||||||||||||||||
EXPENSES |
||||||||||||||||||||||||
Exploration (b) |
| | | | 17 | 43 | ||||||||||||||||||
Purchases of crude oil and products |
| | (2,587 | ) | (1,474 | ) | 5,312 | 3,470 | ||||||||||||||||
Production and manufacturing |
| | | | 1,114 | 888 | ||||||||||||||||||
Selling and general |
61 | 122 | | | 324 | 385 | ||||||||||||||||||
Federal excise tax |
| | | | 328 | 324 | ||||||||||||||||||
Depreciation and depletion |
1 | 2 | | | 181 | 198 | ||||||||||||||||||
Financing costs |
1 | 9 | | | | 11 | ||||||||||||||||||
TOTAL EXPENSES |
63 | 133 | (2,587 | ) | (1,474 | ) | 7,276 | 5,319 | ||||||||||||||||
INCOME BEFORE INCOME TAXES |
(55 | ) | (112 | ) | | | 1,583 | 1,020 | ||||||||||||||||
INCOME TAXES |
(16 | ) | (28 | ) | | | 435 | 308 | ||||||||||||||||
NET INCOME |
(39 | ) | (84 | ) | | | 1,148 | 712 | ||||||||||||||||
Export sales to the United States |
| | | | 1,513 | 1,012 | ||||||||||||||||||
Cash flows from (used in) operating activities |
(33 | ) | (34 | ) | | | 1,456 | 1,125 | ||||||||||||||||
CAPEX (b) |
2 | 9 | | | 308 | 200 |
(a) | Includes crude oil sales made by Downstream in order to optimize refining operations. | |
(b) | Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant, equipment and intangibles and additions to capital leases. |
-7-
3. | Business segments (continued) |
Six months to June 30 | Upstream | Downstream | Chemical | |||||||||||||||||||||
millions of dollars | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||
REVENUES AND OTHER INCOME |
||||||||||||||||||||||||
External sales (a) |
3,285 | 2,349 | 11,830 | 9,082 | 734 | 635 | ||||||||||||||||||
Intersegment sales |
2,846 | 1,750 | 1,671 | 1,057 | 242 | 173 | ||||||||||||||||||
Investment and other income |
9 | 140 | 242 | 24 | 1 | | ||||||||||||||||||
6,140 | 4,239 | 13,743 | 10,163 | 977 | 808 | |||||||||||||||||||
EXPENSES |
||||||||||||||||||||||||
Exploration (b) |
57 | 71 | | | | | ||||||||||||||||||
Purchases of crude oil and products |
2,346 | 1,424 | 11,443 | 7,578 | 778 | 601 | ||||||||||||||||||
Production and manufacturing |
1,256 | 1,036 | 728 | 604 | 107 | 94 | ||||||||||||||||||
Selling and general |
3 | 4 | 476 | 477 | 37 | 35 | ||||||||||||||||||
Federal excise tax |
| | 640 | 629 | | | ||||||||||||||||||
Depreciation and depletion |
235 | 258 | 118 | 121 | 6 | 5 | ||||||||||||||||||
Financing costs |
| 3 | (5 | ) | 1 | | | |||||||||||||||||
TOTAL EXPENSES |
3,897 | 2,796 | 13,400 | 9,410 | 928 | 735 | ||||||||||||||||||
INCOME BEFORE INCOME TAXES |
2,243 | 1,443 | 343 | 753 | 49 | 73 | ||||||||||||||||||
INCOME TAXES |
655 | 420 | 74 | 241 | 15 | 23 | ||||||||||||||||||
NET INCOME |
1,588 | 1,023 | 269 | 512 | 34 | 50 | ||||||||||||||||||
Export sales to the United States |
1,651 | 1,022 | 593 | 502 | 451 | 364 | ||||||||||||||||||
Cash flows from (used in) operating activities |
1,541 | 942 | 243 | 472 | 10 | (59 | ) | |||||||||||||||||
CAPEX (b) |
505 | 311 | 95 | 83 | 4 | 6 | ||||||||||||||||||
Total assets as at June 30 |
9,018 | 7,880 | 7,909 | 6,795 | 535 | 515 |
Corporate | ||||||||||||||||||||||||
Six months to June 30 | and Other | Eliminations | Consolidated | |||||||||||||||||||||
millions of dollars | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||
REVENUES AND OTHER INCOME |
||||||||||||||||||||||||
External sales (a) |
| | | | 15,849 | 12,066 | ||||||||||||||||||
Intersegment sales |
| | (4,759 | ) | (2,980 | ) | | | ||||||||||||||||
Investment and other income |
21 | 43 | | | 273 | 207 | ||||||||||||||||||
21 | 43 | (4,759 | ) | (2,980 | ) | 16,122 | 12,273 | |||||||||||||||||
EXPENSES |
||||||||||||||||||||||||
Exploration (b) |
| | | | 57 | 71 | ||||||||||||||||||
Purchases of crude oil and products |
| | (4,759 | ) | (2,980 | ) | 9,808 | 6,623 | ||||||||||||||||
Production and manufacturing |
| | | | 2,091 | 1,734 | ||||||||||||||||||
Selling and general |
103 | 155 | | | 619 | 671 | ||||||||||||||||||
Federal excise tax |
| | | | 640 | 629 | ||||||||||||||||||
Depreciation and depletion |
3 | 3 | | | 362 | 387 | ||||||||||||||||||
Financing costs |
2 | 19 | | | (3 | ) | 23 | |||||||||||||||||
TOTAL EXPENSES |
108 | 177 | (4,759 | ) | (2,980 | ) | 13,574 | 10,138 | ||||||||||||||||
INCOME BEFORE INCOME TAXES |
(87 | ) | (134 | ) | | | 2,548 | 2,135 | ||||||||||||||||
INCOME TAXES |
(25 | ) | (35 | ) | | | 719 | 649 | ||||||||||||||||
NET INCOME |
(62 | ) | (99 | ) | | | 1,829 | 1,486 | ||||||||||||||||
Export sales to the United States |
| | | | 2,695 | 1,888 | ||||||||||||||||||
Cash flows from (used in) operating activities |
(40 | ) | 45 | | | 1,754 | 1,400 | |||||||||||||||||
CAPEX (b) |
4 | 16 | | | 608 | 416 | ||||||||||||||||||
Total assets as at June 30 |
1,335 | 2,069 | (626 | ) | (308 | ) | 18,171 | 16,951 |
(a) | Includes crude oil sales made by Downstream in order to optimize refining operations. | |
(b) | Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant, equipment and intangibles and additions to capital leases. |
-8-
4. | Investment and other income |
Six months | ||||||||||||||||
Second quarter | to June 30 | |||||||||||||||
millions of dollars | 2008 | 2007 | 2008 | 2007 | ||||||||||||
Proceeds from asset sales |
228 | 17 | 241 | 186 | ||||||||||||
Book value of assets sold |
7 | 9 | 9 | 47 | ||||||||||||
Gain/(loss) on asset sales, before tax (a) |
221 | 8 | 232 | 139 | ||||||||||||
Gain/(loss) on asset sales, after tax (a) |
192 | 8 | 201 | 101 | ||||||||||||
(a) | Second quarter of 2008 included a gain of $219 million ($187 million, after tax) from the sale of Rainbow Pipe Line Co. Ltd., an equity company. |
5. | Employee retirement benefits |
Six months | ||||||||||||||||
Second quarter | to June 30 | |||||||||||||||
millions of dollars | 2008 | 2007 | 2008 | 2007 | ||||||||||||
Pension benefits: |
||||||||||||||||
Current service cost |
23 | 25 | 47 | 50 | ||||||||||||
Interest cost |
70 | 62 | 136 | 123 | ||||||||||||
Expected return on plan assets |
(83 | ) | (82 | ) | (165 | ) | (164 | ) | ||||||||
Amortization of prior service cost |
4 | 5 | 9 | 10 | ||||||||||||
Recognized actuarial loss |
26 | 19 | 46 | 38 | ||||||||||||
Net benefit cost |
40 | 29 | 73 | 57 | ||||||||||||
Other post-retirement benefits: |
||||||||||||||||
Current service cost |
2 | 2 | 3 | 3 | ||||||||||||
Interest cost |
6 | 6 | 12 | 12 | ||||||||||||
Recognized actuarial loss |
2 | 1 | 3 | 3 | ||||||||||||
Net benefit cost |
10 | 9 | 18 | 18 | ||||||||||||
6. | Financing costs |
Six months | ||||||||||||||||
Second quarter | to June 30 | |||||||||||||||
millions of dollars | 2008 | 2007 | 2008 | 2007 | ||||||||||||
Debt related interest |
2 | 17 | 4 | 33 | ||||||||||||
Capitalized interest |
(2 | ) | (9 | ) | (4 | ) | (16 | ) | ||||||||
Net interest expense |
| 8 | | 17 | ||||||||||||
Other interest |
| 3 | (3 | ) | 6 | |||||||||||
Total financing costs |
| 11 | (3 | ) | 23 | |||||||||||
-9-
7. | Other long-term obligations |
As at | As at | |||||||
June 30 | Dec. 31 | |||||||
millions of dollars | 2008 | 2007 | ||||||
Employee retirement benefits (a) |
907 | 954 | ||||||
Asset retirement obligations and other environmental liabilities (b) |
521 | 522 | ||||||
Share-based incentive compensation liabilities |
287 | 210 | ||||||
Other obligations |
231 | 228 | ||||||
Total other long-term obligations |
1,946 | 1,914 | ||||||
(a) | Total recorded employee retirement benefits obligations also include $59 million in current liabilities (December 31, 2007 $59 million). | |
(b) | Total asset retirement obligations and other environmental liabilities also include $74 million in current liabilities (December 31, 2007 $74 million). |
8. | Common shares |
As at | As at | |||||||
June 30 | Dec. 31 | |||||||
thousands of shares | 2008 | 2007 | ||||||
Authorized |
1,100,000 | 1,100,000 | ||||||
Common shares outstanding |
882,073 | 903,263 |
millions of | ||||||||
Year | shares | dollars | ||||||
1995 - 2006 |
795.6 | 10,453 | ||||||
2007 - Second quarter |
13.0 | 622 | ||||||
- Full year |
50.5 | 2,358 | ||||||
2008 - Second quarter |
10.6 | 606 | ||||||
- Year-to-date |
21.6 | 1,196 | ||||||
Cumulative purchases to date |
867.7 | 14,007 |
-10-
Six months | ||||||||||||||||
Second quarter | to June 30 | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Net income per common share basic |
||||||||||||||||
Net income (millions of dollars) |
1,148 | 712 | 1,829 | 1,486 | ||||||||||||
Weighted average number of common
shares outstanding (millions of shares) |
888.1 | 934.1 | 893.9 | 941.4 | ||||||||||||
Net income per common share (dollars) |
1.29 | 0.76 | 2.05 | 1.58 | ||||||||||||
Net income per common share diluted |
||||||||||||||||
Net income (millions of dollars) |
1,148 | 712 | 1,829 | 1,486 | ||||||||||||
Weighted average number of common shares
outstanding (millions of shares) |
888.1 | 934.1 | 893.9 | 941.4 | ||||||||||||
Effect of employee share-based awards (millions of shares) |
6.5 | 5.8 | 6.4 | 5.8 | ||||||||||||
Weighted average number of common shares
outstanding, assuming dilution (millions of shares) |
894.6 | 939.9 | 900.3 | 947.2 | ||||||||||||
Net income per common share (dollars) |
1.28 | 0.76 | 2.03 | 1.57 |
9. | Earnings reinvested |
Six months | ||||||||||||||||
Second quarter | to June 30 | |||||||||||||||
millions of dollars | 2008 | 2007 | 2008 | 2007 | ||||||||||||
Earnings reinvested at beginning of period |
7,100 | 6,630 | 7,071 | 6,462 | ||||||||||||
Cumulative effect of accounting change (2) |
| | | 14 | ||||||||||||
Net income for the period |
1,148 | 712 | 1,829 | 1,486 | ||||||||||||
Share purchases in excess of stated value |
(587 | ) | (599 | ) | (1,158 | ) | (1,144 | ) | ||||||||
Dividends |
(80 | ) | (84 | ) | (161 | ) | (159 | ) | ||||||||
Earnings reinvested at end of period |
7,581 | 6,659 | 7,581 | 6,659 | ||||||||||||
10. | Comprehensive income |
Six months | ||||||||||||||||
Second quarter | to June 30 | |||||||||||||||
millions of dollars | 2008 | 2007 | 2008 | 2007 | ||||||||||||
Net income |
1,148 | 712 | 1,829 | 1,486 | ||||||||||||
Post-retirement benefit liability adjustment (excluding amortization) |
(105 | ) | | (105 | ) | (28 | ) | |||||||||
Amortization of post retirement benefit liability adjustment
included in net periodic benefit costs |
23 | 18 | 42 | 35 | ||||||||||||
Other comprehensive income (net of income taxes) |
(82 | ) | 18 | (63 | ) | 7 | ||||||||||
Total comprehensive income |
1,066 | 730 | 1,766 | 1,493 | ||||||||||||
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Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations. |
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Item 3. | Quantitative and Qualitative Disclosures about Market Risk. |
Earnings sensitivity (a) | ||||
millions of dollars after tax | ||||
Ten cents decrease (increase) in the value of the Canadian dollar
versus the U.S. dollar |
+ (-) 710 |
Item 4. | Controls and Procedures. |
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Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Period | (a)
Total number of shares (or units) purchased |
(b) Average price paid per share (or unit) |
(c) Total number of shares (or units) purchased as part of publicly announced plans or programs |
(d) Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs |
||||||||||||
April 2008 (April 1- April 30) |
1,381,575 | $ | 53.47 | 1,381,575 | 8,114,821 | |||||||||||
May 2008 (May 1 - May 31) |
5,363,733 | $ | 58.18 | 5,363,733 | 2,700,158 | |||||||||||
June 2008 (June 1 - June 30) |
3,833,934 | $ | 57.51 | 3,833,934 | 43,010,753 |
(1) | On June 21, 2007, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a normal course issuer bid to continue its share repurchase program. The program enabled the company to repurchase up to a maximum of 46,459,967 common shares, including common shares purchased for the companys employee savings plan and employee retirement plan during the period June 25, 2007 to June 24, 2008. The program ended on June 24, 2008. | |
(2) | On June 23, 2008, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid and will continue its share repurchase program. The new program enables the company to repurchase up to a maximum of 44,194,961 common shares, including common shares purchased for the companys employee savings plan, the companys employee retirement plan and from Exxon Mobil Corporation during the period June 25, 2008 to June 24, 2009. If not previously terminated, the program will end on June 24, 2009. |
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(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 and of the company pursuant to Rule
13a-14(b) and 18 U.S.C. Section 1350. |
||
(32.2 | ) | Certification by the chief financial officer and of the company pursuant to Rule
13a-14(b) and 18 U.S.C. Section 1350. |
IMPERIAL OIL LIMITED (Registrant) |
||||
Date: July 31, 2008 | /s/ Paul. A. Smith | |||
(Signature) | ||||
Paul A. Smith Senior Vice-President, Finance and Administration and Treasurer (Principal Accounting Officer) |
||||
Date: July 31, 2008 | /s/ Brent. A. Latimer | |||
(Signature) | ||||
Brent A. Latimer Assistant Secretary |
||||
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