The company reported that net income for the first six months of 2008 was C$1.82 billion, or C$2.03 per share, versus C$1.48 billion, or C$1.57 per share, for the first half of 2007.
Earnings in the second quarter were higher than the same quarter of 2007 as higher upstream earnings were partially offset by lower downstream earnings. In the upstream sector, higher crude oil and natural gas commodity prices were partially offset by the negative impacts of lower conventional volumes from expected reservoir decline, higher royalties, a stronger Canadian dollar, and higher energy and maintenance costs, the company said.
Lower downstream earnings were primarily due to the negative impacts of lower overall industry refining margins and a stronger Canadian dollar, partially offset by a gain from asset divestment.
Operating revenues were C$8.61 billion in the second quarter of 2008, compared with C$6.29 billion in the corresponding period of 2007. Capital and exploration expenditures were C$308 million in the second quarter of 2008, compared with C$200 million during the same quarter of 2007. For the first half of 2008, this expenditure was C$608 million, versus C$416 million in the same period of 2007.
Bruce March, Imperial’s CEO, said: Our operations and reliability improved in the quarter and included successful completion of planned turnarounds in the upstream and downstream businesses. We continue to focus on our high quality portfolio of company growth projects and have received federal authorization for the Kearl oil sands project to proceed.
