Imperial Reports 3Qby Allen Good | 11-04-09 | 5:00PM |
E-mail Article |
Print Article Imperial Oil IMO reported a 61% drop in third-quarter earnings compared with those the same period a year earlier. Upstream earnings registered a drop of 56% from the quarter a year ago as a result of the fall in oil and gas prices during the same period. Production declined for the quarter by 2% primarily because of the natural decline of natural gas reservoirs. Oil volumes remained essentially flat. Downstream earnings suffered, as well, falling 77% from the quarter a year earlier. A faltering economy resulted in weak refining margins and reduced sales volumes, both of which hurt earnings. Similar conditions are likely to continue throughout the remainder of the year. Production for the full year should likely end up flat with that of 2008 because of higher production from Cold Lake and Syncrude. However, Imperial's growth remains tied to its long-term projects like the Kearl oil sands and natural gas in the Horn River basin. Like its parent, ExxonMobil XOM, Imperial continues to invest to bring these projects into production despite the fall in oil prices. Capital expenditures year to date are 72% higher than in the same period last year. Although these long-term projects will drive growth, in the meantime Imperial could potentially be a buyer of ConocoPhillips' COP 9% stake in Syncrude to boost production.
Get our full take on
Imperial OilImperial Oil
See our complete company report and outlook--including fair value estimate, consider buying and selling prices, risk rating, bull and bear arguments,
and star rating--with a free two-week Morningstar.com Premium Membership trial.
You will also get complete access to all 2,000 Stock Analyst Reports, 2,000 Mutual Fund Analyst Reports, and Morningstar's award-winning Portfolio Management and Screening tools.
Start my free trial
Learn more about Premium Membership
View Sample Analyst Report
Analyst Notes
08-05-09 | 9:43AM Imperial Oil Reports 2Q Earnings
08-05-09 | 9:43AM Imperial Oil Reports 2Q Earnings
More Analyst Research
Imperial Oil Full Analyst Report
Analyst Notes
08-05-09 | 9:43AM Imperial Oil Reports 2Q Earnings
08-05-09 | 9:43AM Imperial Oil Reports 2Q Earnings
|
Sponsored Links Allen Good is a stock analyst covering the oil and gas industries. Prior to joining Morningstar in 2008, he performed M&A advisory work for a middle market investment bank. He holds an MBA from the University of North Carolina Kenan-Flagler Business School and a bachelor's degree in business from the University of Tennessee. Analyst Feedback.
Morningstar's editorial policies prohibit analysts from owning stocks they cover. Find out more about Morningstar's editorial policies here.
|
Morningstar's Latest ArticlesClick here to see the full list. |
