Imperial Oil, a Canadian energy company, is set to announce its financial results for the fourth quarter of the year. Here’s what you need to know:
Earnings Forecast
Analysts predict that Imperial Oil will report a net income of 1.22 billion Canadian dollars ($910.7 million), or C$2.14 per share, for the fourth quarter. This is based on the mean forecast of analysts polled by FactSet. In comparison, the company earned C$1.73 billion, or $2.86 per share, in the same period last year. Adjusted earnings per share for the fourth quarter are expected to be C$2.12.
Revenue Forecast
Analysts anticipate that Imperial Oil’s revenue and other income for the fourth quarter will amount to C$13.09 billion. This would mark a decline from the C$14.45 billion generated in the final three months of the previous year.
Production Forecast
For the quarter, analysts have estimated an average production of 441,900 oil-equivalent barrels per day. This is slightly higher than the 441,000 gross barrels produced during the same period last year.
Key Aspects to Observe
2024 Guidance
In December, Imperial Oil provided guidance for 2024, including projections for capital spending and production. Analysts will be focused on any potential adjustments to these targets and updates on the company’s plans to complete turnarounds at all three refineries this year. They will also seek information on the in-service date of a renewable diesel facility scheduled for early-2025.
Shareholder Returns
Investors will closely monitor Imperial Oil’s payouts as the company has demonstrated a commitment to shareholder returns. In December, it completed a share repurchase of C$1.5 billion through a substantial issuer bid. Previous accelerated buybacks were conducted under a normal course issuer bid program, which was concluded in October. Analysts at RBC Capital Markets have factored in a 10% dividend increase to an annualized rate of C$2.20 per share in their first-quarter 2024 estimates.
Cost-Cutting Measures
Following Enbridge’s recent announcement about job cuts, cost-cutting measures at Imperial Oil will be closely observed. Enbridge revealed plans to reduce its workforce by approximately 5% (650 jobs) to address immediate challenges.
