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Canada’s Imperial Oil vows disclosure after parent Exxon shares new pollution data

Canada’s Imperial Oil says it will update its carbon pollution disclosure “in the coming months,” after parent company Exxon Mobil pulled back the curtain for the first time on emissions from the use of its own products.

Exxon bowed to investor pressure and released information this week showing the carbon pollution that is generated when its products are used, such as when the gasoline sold at company-affiliated gas stations is combusted inside people’s car engines.

This measurement of pollution, known by its technical term “Scope 3,” accounts for between 70 and 80% of life cycle emissions for most oil companies, according to the Pembina Institute.

Exxon’s Scope 3 emissions, the company admitted in its 2021 Energy and Carbon Summary, were equivalent to 730 megatonnes (Mt) of carbon dioxide in 2019. That puts Exxon, one of the largest oil and gas companies in the world, roughly on par with Canada’s entire emissions output of 729 Mt in 2018.

Financial experts have suggested for years that firms move towards disclosing these emissions. Canada’s federally appointed expert panel on sustainable finance, for example, recommended in June 2019 that corporations should begin preparing to “disclose, if appropriate, Scope 3 greenhouse gas emissions” and related risks. Two years before that, the Switzerland-based Financial Stability Board said the same thing.

“We need oil companies to phase out their fossil fuel production in line with what the climate science demands, and reporting Scope 3 emissions instead of ignoring them is a small step towards that,” said Oil Change International research analyst Bronwen Tucker.

Environmental groups, however, say the Canadian oil and gas sector is lagging when it comes to publicly disclosing this measurement of carbon pollution, at least to the fullest extent possible.

The Canadian Association of Petroleum Producers, the main industry group, did not respond to multiple requests for comment. The Canadian Fuels Association declined comment, while the Petroleum Services Association of Canada said it was not in a position to respond before publication.

In response to questions about whether the company would be making Scope 3 emissions data available to the Canadian public following its parent company’s move, Imperial Oil spokesperson Lisa Schmidt said: “We will provide an update on our emissions disclosure within our sustainability report in the coming months.”

Suncor, a large Canadian energy company, does disclose Scope 3 emissions, according to the Transition Pathway Initiative, which bills itself as a “corporate climate action benchmark” that assesses how companies are preparing for the low-carbon economy.

But Tucker argued that the Scope 3 data in the company’s Climate Risk and Resilience Report for 2020 represented an incomplete picture as it focused on its own refineries. A request for comment to Suncor was not returned before publication.

Imperial and other companies do publish what’s known as “Scope 1” and “Scope 2” emissions data, which refer to the carbon pollution from an energy company’s own operations, like crude oil production, as well as those emissions associated with the electricity that the company consumes.

In Canada, much of the attention on rising emissions from the oilpatch have been focused on these kinds of measurements. Greenhouse gas emissions from oil and gas production climbed 23% over the last roughly two decades, for example, largely due to increased production.

Oilpatch firms have also invested in technology that can decrease these kinds of emissions as well as their emissions intensity.

Cenovus Energy, another large Canadian company, said it currently reports Scope 1 and Scope 2 emissions in its Environmental, Social and Governance Report for 2019. Cenovus recently merged with oilpatch firm Husky Energy in a $6-billion deal.

“ESG (environmental, social and governance) leadership will remain core to the combined company,” said spokesperson Sonja Franklin.

“This includes ambitious ESG targets, robust management systems and transparent performance reporting. We will also maintain our ambition of achieving net-zero emissions by 2050.”

 


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Imperial Oil ekes out Q3 profit as Kearl oil sands mine rebounds from outage

Screen Shot 2020-11-03 at 11.48.29 AMSurging production from its Kearl oil sands mine after an unplanned two-week outage, along with a better-than-targeted drop in capital and operational spending, helped Imperial Oil Ltd. beat expectations with a small profit in the third quarter.

The Calgary-based company posted Friday net earnings of $3 million on $5.96 billion in revenue, down from a profit of $424 million in the same quarter last year on revenue of $8.74 billion.

“While $3 million may not seem like a big number, it’s a positive number and that speaks volumes in this business environment,” CEO Brad Corson told a conference call with financial analysts on Friday.

Analysts had expected a loss of $79 million on revenue of $5.7 billion, according to data firm Refinitiv. Imperial lost $526 million on revenue of $3.7 billion in the second quarter.

Oilsands rivals Suncor Energy Inc., Cenovus Energy Inc., Husky Energy Inc. and MEG Energy Corp. all reported third-quarter losses earlier this week due to lower oil prices – all but Cenovus reported lower production as well.

Like the others, Imperial has been focused on cutting costs.

“At the end of March, we committed to deliver spending reductions totalling $1 billion, which included a $500-million reduction in capital spending as well as $500 million in lower expenses,” said Corson.

“As of the end of the quarter, our production and manufacturing expenses are down $813 million versus the first nine months of 2019 … and our capital spending is down over 50 per cent, a savings of $700 million.”

Imperial revised its capital spending for 2020 to $900 million, down about $250 million from the midpoint of its last guidance update, though Corson said it will likely rise in next year’s budget.

Production averaged 365,000 barrels of oil equivalent per day in the third quarter, compared with 407,000 boepd in the same period of 2019, but up from 347,000 boepd in the second quarter, the company said.

Its Kearl oilsands mine in northeastern Alberta was forced to shut down for two weeks in September after the Polaris diluent pipeline was taken off-line to repair a leak. That prevented Kearl from receiving the light petroleum it needs to dilute heavy bitumen so that it will flow in a pipeline.

Corson said the mine’s output jumped to a record of 313,000 barrels of bitumen per day during the four weeks after restarting and it averaged 300,000 bpd in October, well above the 280,000 bpd capacity expected after supplemental ore crushers were added last year.

Alberta’s announcement last week that it will suspend oil production quotas in December was welcomed by Corson, but he said the province’s retaining of the right to bring the quotas back in 2021 creates an “overhang of uncertainty.”

Imperial’s shares are 70% owned by American energy giant ExxonMobil, which announced Thursday 1,900 employees in the U.S. will lose their jobs as part of its plan to cut its worldwide workforce by about 15%t.

It is also evaluating potential job cuts in Canada but a spokeswoman said Thursday it was “premature” to talk about that, adding it intends to communicate with employees of ExxonMobil Canada in coming weeks.

Corson said on the call that Imperial has reduced the number of contractors it employs without saying how many or indicating whether full-time staff have been affected by cost-cutting.

Earlier this week, Cenovus and Husky said they will cut as many as one in four jobs, potentially more than 2,000 workers, if their merger announced last Sunday is closed as expected early next year.

Suncor announced in early October it will cut as many as 1,930 jobs over 18 months to reduce total staff by 10 to 15%.

Job cuts are also expected in the Canadian operations of Royal Dutch Shell, which announced in September it would eliminate between 7,000 and 9,000 jobs worldwide by the end of 2022, and, to a lesser extent, from BP, which said in June it would cut around 10,000 jobs from its global workforce.


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Forecourt’s new normal

COVID-19 has created tremendous change in the marketplace

Screen Shot 2020-07-16 at 2.20.39 PMCanadian convenience, car wash and gas businesses worked hard to keep staff and customers safe during COVID-19. Behind the effort has been a push from major retailers to enhance operational practices and from equipment manufacturers that sped design and production to meet the public health challenge.

Canadian Tire was an early adopter of PPE for customers. When the virus hit, Canadian Tire sites used disposable glove dispensers to help customers stay safe at its gas bars. At Petro-Canada and 7-Eleven sites, they didn’t offer gloves, but fuel dispensers came with a placard that asked customers to use paper towels to keep hands from touching gas dispenser nozzles. At 7-Eleven operators also changed how they handle cash. Certainly, customers can utilize the pay-at-the-pump features at the dispenser, but in-store, customers are asked to place cash on counters so that hands do not touch. When the sale is complete, staff sanitize the area ahead of the next customer.

Shell is another major that has taken action to safeguard staff and customers. According to Shell Canada spokesperson Kristen Schmidt, the company has installed plexiglass at payment counters, added floor signage to maintain physical distance, and enhanced cleaning procedures. “We also have the Shell app, available in the Apple app store and Google Play store, which includes Shell EasyPay. This is a secure and touchless way for customers to pay for their purchases at the pump or in-store. We recognize that customers may wish to limit interactions at this time and practice safe social distancing, which can easily be accommodated through Shell EasyPay.”

Other Shell initiatives include recommendations laid out by the World Health Organization and the Public Health Authority of Canada. Schmidt points to six key items.

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At Esso and Mobil stations the company worked alongside its independent branded retailers to ensure the customer experience was safe and convenient. Imperial Oil is present in the market with 21 fuel terminals and more than 2000 Esso and Mobil sites across Canada.

Screen Shot 2020-07-16 at 2.19.38 PMAccording to Jon Harding, public affairs advisor, Imperial Oil, Esso and Mobil service station personnel have been tasked to make sure sites in Canada are frequently cleaned and sanitized – from fuel nozzles to store countertops to door handles. “When at the pump, we encourage customers to leverage the mobile payment option through the Speedpass+ app to reduce contact with surfaces.  We also recognize the importance of and, where appropriate, are striving to provide services to essential service providers, such as truck drivers. Specific to cardlock sites, we enhanced our online Esso cardlock locator tool for truckers and made it easier to identify cardlock sites and call ahead for information about facilities.”

Help at hand

Like retailers and fuel distributors, equipment manufacturers have been quick to come forward with much-needed innovation. These products have greatly helped retailers keep up their guard on cleanliness and site performance.

Fixture fabricator Gorrie RCP, a frontline company that designs, develops, and builds tailor-made waste and recycling management products as well as amenity fixtures and merchandising displays, got to work early on a range of personal protection equipment (PPE) for staff at c-store, car wash and gas bar. According to Gorrie’s business development manager, David McLean, the company had to speed up production to meet the sudden demand.

“Normally we take about four weeks to design, engineer and manufacture a product. We cut that down to two weeks. Many of our customers are essential services and we had to get products to them to keep them safe,” says McLean mentioning that face shields were the first offering followed by hand sanitizing stations. “At first people were looking for temporary solutions, but as the challenge grew it could be seen that more permanent solutions were necessary. The COVID-19 crisis is one that will be with us for the next couple of years at least. We are seeing that consumer behaviours have changed and retailers need to offer a higher level of safety to make customers feel secure. Our teams are actively looking at not only what is needed now, but we have to look to the future for products that will be needed tomorrow as well as we continue to face great change in our society.”

Gorrie RCP offers a range of PPE that includes distancing signage, clear plastic partitions, sanitizer gels and hand washing stations as well as masks and face shields.

RTS Retail is another manufacturer that came forward quickly with protective equipment during COVID-19. According to Darren Norley, national accounts manager, RTS Retail, the company has been making protective gear for years before the novel coronavirus made itself known. One example is Citrus Wirx a line that has been helping grocery and convenience shoppers keep carts and baskets virus-free for years. Now, this product is at the front lines during the COVID-19 pandemic. “In the last three months we have seen demand soar for sanitary wipes and other items,” says Norley remarking that sales for things like Citrus Wirx have climbed 700% over the past three months. “We have been able to supply our regular customers with PPE, but even with three factories (Canada, US, China) demand was so great we had to step up production and it was a challenge to fully meet this increase.”

RTS Retail also offers Grab Wirx, a protective glove system that is ideal for gas stations where dispenser and windshield wiper handles can carry COVID-19. Grab Wirx dispenses up to 200 gloves in a touch-free environment. 

“We are seeing sectors such as grocery retail now preparing for future health crisis scenarios similar to the current COVID-19 problem,” says Norley. “They don’t want to get caught empty-handed again without proper PPE.  The cost is small compared to the size of the problem to business.”

McCowan Design and Manufacturing, a Canadian leader in-store fixtures and displays for convenience, gas bar and foodservice as well as a range of other retail environments, quickly added new virus safety-related products to their lineup. Helping staff work safe McCowan now offers acrylic screens for retail and service desk personnel as well as stands and supports for hand sanitizers.

The new hand sanitizer stands can accommodate a variety of hand sanitizer bottle sizes and can be set up as a freestanding or wall-mounted unit. Stands can also handle dispensers or bottles and stands come with the ability to lock sanitizer into place to prevent thefts. The acrylic screens are made using 1/4-inch acrylic sheets and come with a solid metal base. Overall size is 40” X 23” X 12” with a large 8.5” X 12” pass-through.

“The ways that convenience store and gas bars offer safety and protection to their customers tell people volumes about the overall service at hand,” says McCowan VP Anthony Ruffolo. “Having a prominently displayed hand sanitizer during these challenging times is a simple way to tell customers you value their business and you are a responsible community member. It’s not an expensive service add on and it says you care.”

Originally published in the July/August issue of OCTANE. 


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Imperial Oil reports $188M loss as COVID-19 hits workers, slows work schedule

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CEO Brad Corson

Imperial Oil Ltd. is slowing or deferring maintenance work throughout its operations as it tries to ensure employee safety in the wake of a COVID-19 outbreak that has infected 83 workers at its Kearl oilsands mine in northern Alberta.

The Calgary-based company said Friday it will start a planned one-month maintenance shutdown of one of its two production trains at Kearl in a few days and extend it by an extra month to late June or early July to allow more distancing between workers.

The extension means production at Kearl will fall from the record average of 226,000 barrels per day in the first quarter – and 238,000 bpd in March – to about 150,000 bpd in the second quarter, CEO Brad Corson told a conference call on Friday.

“This allows us to progress at a more measured pace and greatly reduce the number of people we have working at site at any given time and without affecting the overall scope,” he said.

“It also allows us to complete the work at a time of likely low prices so we can have the asset fully up and running as and when prices recover.”

He said the company has also reduced the scope of maintenance at its Sarnia, Ont., refinery, will defer planned work at its Sarnia chemical plant and is postponing planned maintenance at its Nanicoke, Ont., and Strathcona (Edmonton) refineries until after this year.

Twenty-two of the Kearl workers stricken with the coronavirus have recovered and the others are being monitored or treated as necessary, Corson said.

Work at the project is continuing with enhanced physical distancing, cleaning and health screening, along with supplying face masks and moving fewer workers on transport airplanes and buses.

Kearl is owned by Imperial at 71% and its parent company, ExxonMobil, with 29%.

The record output at Kearl thanks to the introduction of supplemental ore crushers drove overall Imperial production to about 419,000 barrels of oil equivalent per day in the first three months of 2020, up from 388,000 boe/d in the same period last year.

Record throughput at its Strathcona refinery helped take its overall processing total to 383,000 barrels per day, the same as a year ago.

Corson said demand for jet fuel and gasoline fell significantly in March, while diesel demand dropped by a more moderate amount, due to measures taken to limit the pandemic. However, there are signs demand may be slowly recovering, he added.

Imperial reported a net loss of $188 million in the first quarter due to lower commodity prices and non-cash charges of $301 million, with $281 million of that due to a reduction in the value of its inventory as crude oil prices plunged in March and $20 million from a goodwill impairment.

It had a net profit of $293 million in the same quarter last year.

Fellow oilsands producers Husky Energy Inc. and Cenovus Energy Inc. both reported writedowns and losses earlier this week.

Imperial’s revenue and other income totalled $6.69 billion in the quarter, down from $7.98 billion in the first quarter of 2019.

Imperial’s average realized bitumen price averaged $18.08 per barrel in the first quarter of 2020, compared to $48.85 per barrel in the first quarter of 2019.

Crude-by-rail shipments averaged 97,000 bpd from its co-owned Edmonton rail terminal in the first quarter of 2020, up from 53,000 bpd in the fourth quarter of 2019.

Shipments by rail fell to about 10,000 bpd in April and are being phased out as pipeline space is freed up amid industry-wide production cutbacks due to current low oil prices, said Corson.

Analysts said Imperial beat their expectations on production and on cash flow, the latter thanks to higher profits from its refining and marketing sector.

Imperial cut its 2020 capital spending plan at the end of March by $500 million to between $1.1 billion and $1.2 billion and targeted a reduction in expenses by $500 million compared with 2019 levels in an effort to deal with impact of the pandemic.

 


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Petroleum sector pledges support during COVID-19

Screen Shot 2020-05-05 at 11.40.37 AMImperial Oil is the latest major petroleum company to roll up its sleeves in the fight against COVID-19. Already, Shell is offering free sandwiches and beverages to essential workers during the pandemic. Now, Imperial is coming forward with initiatives to help support those on the front line and aid in the fight against the spread of the virus. 

The Calgary-based company reports that they will provide up to $2 million in free fuel vouchers to frontline nurses, paramedics and doctors as part of its Heroes Campaign launched in response to the COVID-19 pandemic. Through this promotion, Imperial is offering 80,000 digital vouchers, each worth $25, to healthcare workers currently providing critical care across Canada. Vouchers can be secured online on a first-come, first-served basis at www.healthcarehero.ca and are redeemable at more than 2,000 Esso and Mobil stations across Canada through the company’s free Speedpass+ mobile payment app.

Imperial is also donating 60 tonnes of isopropyl alcohol (IPA) to be used in disinfectant products. IPA is an ingredient used in medical, health and pharmaceutical applications, such as hand sanitizer, medical wipes and rubbing alcohol. This donation will assist the production of more than 600,000, 350 ml bottles of hand sanitizer.

“We recognize the need is great and while many of us are isolating in the physical sense, I am proud of how our employees and neighbours have come together to donate critical supplies and funding where it is needed the most,” says Imperial CEO Brad Corson.

In addition to helping to meet Canada’s demand for IPA, Imperial has also supported the country’s pandemic response efforts by donating hundreds of laptops to students and matching employee cash donations 2:1.

Imperial reports that their laptop initiative will support on-line learning with a donation of 500 laptops to help meet the demand for technology devices while classrooms remain closed. The program has Imperial working with the Electronic

Recycling Association’s Lending Laptops Program in support of the Calgary Board of Education’s EducationMatters campaign.

With community charities in greater need than ever, Imperial has teamed with its employees to help. Imperial increased its match dollars to $2 for every $1 given by an employee. This is for donations to community charities and not-for-profit organizations.   

“We owe so much gratitude to those on the front lines who are working long hours helping those in need,” says Imperial’s CEO. According to Corson, the company will continue to look for ways to support Canadians as we all manage through this challenging period.


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Imperial Oil reports $271M fourth quarter profit, down from $853M a year ago

Imperial Oil Ltd. reported a fourth-quarter profit of $271 million, down from $853 million in the same quarter last year.

The company says the profit amounted to 36 cents per diluted share for the quarter ended Dec. 31, compared with a profit of $1.08 per diluted share a year earlier.

Revenue and other income totalled $8.16 billion for the quarter, up from $7.89 billion.

Profit at the company’s downstream operations totalled $225 million compared with $1.14 billion a year earlier due to lower margins and planned turnaround activities.

However, profit at Imperial’s upstream operations amounted to $96 million in the quarter compared with a loss of $310 million in the final quarter of 2018.

Production averaged 398,000 gross oil-equivalent barrels per day in the quarter, compared with 431,000 barrels per day in the same period of 2018.


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Imperial takes Q3 in stride

Imperial Oil Ltd.’s recent Q3 report shows a tough quarter behind them as they move ahead with good performance on the upstream side in 2019.

Rich Kruger is retiring at the end of December.

Rich Kruger is retiring at the end of December.

Imperial achieved its highest third-quarter production in 30 years. This performance demonstrates the results of the companys focus on upstream reliability,says Rich Kruger, outgoing chairman and CEO. Overall, upstream gross oil-equivalent production averaged 407,000 barrels per day (BPD), up from 393,000 barrels per day in the third quarter of 2018.

Cash flow generated from operating activities was $1.376 billion in the third quarter, up from $1.207 billion in the corresponding period in 2018, primarily reflecting favourable working capital effects, partially offset by lower earnings.

 However, Imperial was not so fortunate with other aspects of the quarter. Crude-by-rail shipments were off by 8%, refinery through-put decreased 25,000BPD, product sales declined 28,000BPD and net income for the quarter was down more than $300 million compared to the same period last year. Even chemical income declined, with numbers revealing sales declines of about half compared to last year’s Q3 totals.

 The company reports that margin pressures and turnaround activities cost some $300 million in lost revenue in Q3. As a result, net income for downstream activity was written as $221 million in the third quarter, compared to $502 million in the third quarter of 2018.

 Big picture remains bright

 While some numbers in Q3 were less than optimum, 2019 looks like a good exit point for Kruger, who will retire this year and will be replaced by Brad Corson, who will take on the CEO mantle January 1, 2020. Corson was appointed president and director in September.

“Imperial’s people and assets provide a solid foundation for continued growth and leadership within the Canadian energy industry,” says Corson, adding he looks forward to building on Imperial’s strengths to deliver long-term shareholder value.

As Kruger hands over the reins, Imperial’s strengths look good moving forward despite challenges in the downstream side where income was $736 million for the first nine months of 2019, compared to $1.224 billion for the same period in 2018. Earnings were negatively impacted by lower margins of close to $430 million, reliability events of about $140 million, including the fractionation tower incident at Sarnia, and lower sales volumes of about $100 million.

 Challenges aside, Imperial’s management was able to increase net income in the first nine months of 2019. During this period income was $1.929 billion, or $2.51 per share on a diluted basis, up from net income of $1.461 billion or $1.79 per share in the first nine months of 2018. Behind this gain is a 4% decrease in Alberta’s corporate income tax rate.

Cash flow generated from operating activities is also up. The company reports earnings of $3,405 million in the first nine months of 2019, up from $3,051 million in the same period of 2018, primarily re


Rich Kruger is retiring at the end of December.

Imperial Oil CEO offers faint praise for Alberta curtailment cuts for rail plan

Alberta is going in the “right direction” with its plan to ease production curtailments for oil producers who add crude-by-rail capacity, the CEO of Imperial Oil Ltd. said, although he didn’t commit to transport more oil by rail.

Rich Kruger – one of the industry’s most outspoken critics of mandatory curtailments that began last January – said it’s necessary to review of the details of the province’s plan, which was announced Oct. 31.

“I would say, in the form of a compliment to the government, they’re trying to make the best of a bad situation. They’re playing the cards they were dealt,” he said on a webcast to discuss third-quarter results.

“The bad situation is that we’re in curtailment in the first place.”

Under the previous NDP government, Alberta put a cap on the amount of oil that the industry can produce as a way to narrow price discounts that grew as oil production exceeded the ability of pipelines to get the crude to market.

The measure was continued by the United Conservative government, when it was elected last spring, but the industry quota is rising to 3.81 million barrels per day in December, up 250,000 bpd from the original limit of 3.56 million bpd.

Imperial is more heavily invested in crude-by-rail than most producers because it co-owns a terminal in Edmonton with the capacity to load 210,000 bpd _ about one third of the province’s estimated rail capacity of 500,000 to 600,000 bpd.

However, Kruger said the economic case for shipping oil by rail steadily worsened over the summer because there’s not enough difference in price between Alberta and the U.S. Gulf Coast end market to support shipping by rail, which is more expensive than pipelines.

Rail shipments by Imperial in the third quarter fell from 76,000 bpd in July to 35,000 bpd in September, he said, adding the volumes would be headed even lower in the current quarter if not for the government announcement and the possible impact of an outage on the Keystone pipeline following a large oil spill in North Dakota earlier this week.

He said rail shipping volumes are “to be determined at this point,” adding Imperial uses Keystone but declining to give volumes.

Rival oilsands producer Cenovus Energy Inc. said it would quickly add as much as 20,000 bpd to oilsands output and proceed with bringing an oilsands expansion on stream, to add 50,000 bpd in the next six to 12 months following the Alberta decision on curtailments.

Suncor Energy Inc., meanwhile, said it would put up to 30,000 bpd on rail over the next month or so in view of the announcement.

Alberta’s lack of pipeline capacity has made oil-by-rail the next-best method of transport, but the switch comes with certain costs. In a 2016 study, researchers at the University of Alberta found that pipeline transportation of oil produced between 61 and 77% fewer greenhouse gas emissions than rail, and numerous studies have found that pipelines are the safer transport method.

Imperial reported Nov. 1 that net income fell 43%t to $424 million in the three months ended Sept. 30, compared with $749 million or 94 cents per share in the same period of 2018.

It said cash generated from operating activities added up to $1.38 billion in the quarter, up from $1.21 billion in the third quarter of 2018.

The biggest drag on earnings came from Imperial’s downstream operations, where net income slipped to $221 million from $502 million due to lower refinery profit margins and planned maintenance outages.

On the upstream side, Imperial reported slightly lower income due to higher operating expenses and royalties – it noted lower volumes at its Kearl oilsands mine and Cold Lake bitumen works but higher volumes from the Syncrude mining facility, in which it holds a 25 per cent stake.

Total production rose to 407,000 barrels of oil equivalent per day from 393,000 boe/d in the same period of 2018.

Kruger is retiring at the end of the year and his role is to be assumed by Brad Corson.


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Imperial Oil names new president, as Kruger announces retirement

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Corson is Imperial’s new president

The board of directors of Imperial Oil Limited is appointing B.W. (Brad) Corson as president.

Corson took on the role September 17, 2019. In turn, chairman and CEO R.M. (Rich) Kruger is retiring at the end of December 2019. Corson will assume the role of chairman, president and CEO of Imperial Oil Limited on January 1, 2020.

“On behalf of the Imperial board of directors, I would like to thank Rich Kruger for his outstanding leadership and dedication over the last almost seven years. During his tenure, Rich has led the organization through a period of record upstream growth, exceptional downstream financial and operational performance, and unprecedented returns to shareholders in the form of share repurchases and dividend growth,” Imperial Oil Limited board member Krystyna Hoeg said in a statement. “That said, perhaps Rich’s greatest legacy to the company and its employees is his work to successfully ignite and foster cultural change within Imperial to enhance competitiveness and position it well for the future.”

Rich Kruger is retiring at the end of December.

Rich Kruger is retiring at the end of December.

Kruger, born in Minneapolis, Minnesota, holds a mechanical engineering degree from the University of Minnesota and an MBA from the University of Houston. He began his career with Exxon in 1981 in Houston, Texas and held various technical and management positions throughout the United States. Kruger’s career then took an international turn and for the next 20 years, he led development and production activities in the former Soviet Union, Africa, Asia Pacific and the Middle East. In 2008, he was appointed president of ExxonMobil Production Company and a vice president of ExxonMobil Corporation. Then, in 2013, he began his tenure as chairman, president and CEO of Imperial Oil .

Corson, a native of Woodstock, Illinois, is a graduate of Auburn University’s chemical engineering program. He joined Exxon in 1983 in New Orleans, as a project engineer. During his 36 year career with the company, he held a variety of technical, operations, commercial and managerial assignments around the world. In addition to multiple assignments across the United States, he has also held key leadership positions in Hong Kong and London. In 2009, Corson was appointed vice president, ExxonMobil Production Company, with responsibilities for oil and gas production activities in Europe and the Caspian regions.

In 2015, Corson was appointed president, ExxonMobil Upstream Ventures and vice president of ExxonMobil Corporation where he was responsible for overseeing ExxonMobil’s global upstream acquisition and divestment programs. Under his leadership, ExxonMobil made key strategic acquisitions in the Permian Basin, Papua New Guinea, Mozambique and Brazil.