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Gas industry

Imperial Oil Ltd. Sees Profits Soar in 1993

Strategic Insights

— 1 min read

Imperial Oil Ltd., Canada's largest integrated oil company, experienced a significant boost in profits during 1993, driven largely by its refining and marketing operations. The company's total revenues reached $6.9 billion, with earnings of $213 million, a notable increase from the $149 million earned in 1992. Robert Robinson, a Canadian oil analyst with Scotia McLeod Inc., attributed Imperial's success to its improved operating efficiencies and strategic decisions, such as closing unprofitable gasoline stations and enhancing refinery utilization rates.

Key Takeaways:

  • Imperial Oil Ltd. earned $213 million in 1993, a 43% increase from the $149 million earned in 1992.
  • Total revenues for Imperial were $6.9 billion, compared to $7 billion in 1992.
  • Robert Robinson attributed Imperial's success to its improved operating efficiencies and strategic decisions, including closing unprofitable gasoline stations and enhancing refinery utilization rates.
  • Imperial earned a 9% return on capital in its refining operation, a remarkable achievement in the Canadian refining industry.
  • The company's petroleum products division earned $182 million in 1993, a significant increase from the $72 million earned in 1992.
  • Despite a slight drop in product sales, Imperial improved its refinery utilization rate among its four major refineries to 77% from 74% in 1992.
  • The company's downstream operation helped offset a poorer performance in its national resources division, where earnings fell to $69.5 million from $115 million in 1992.
  • Imperial's total gas production in 1993 was 629 MMcfd, up from 561 MMcfd in 1992.
  • The company received an average price of $1.34/Mcf for gas sales during 1993, with prices averaging $1.48/Mcf during the fourth quarter.

Statistics:

  • Earnings: Imperial Oil Ltd. earned $213 million in 1993, up 43% from $149 million in 1992.
  • Total revenues: $6.9 billion (1993) compared to $7 billion (1992).
  • Refining operation return on capital: 9%
  • Petroleum products division earnings: $182 million (1993) compared to $72 million (1992).
  • Refinery utilization rate: 77% (1993) compared to 74% (1992).
  • Gas production: 629 MMcfd (1993) compared to 561 MMcfd (1992).
  • Average gas price: $1.34/Mcf (1993) compared to $1.48/Mcf (fourth quarter 1993).

Sources:

  • "Imperial Oil Ltd. Sees Profits Soar in 1993," Ottawa
  • Robert Robinson, Canadian oil analyst with Scotia McLeod Inc.
  • Imperial Oil Ltd. press release (no date specified)

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