Imperial Oil Limited

Apr 25, 2001, 01:00 ET from Imperial Oil Limited

    TORONTO, April 24 /PRNewswire/ - Imperial Oil Limited (Amex:   IMO)
 (Toronto: IMO) today announced first-quarter net earnings of $382 million or
 96 cents a share, compared with $269 million or 63 cents a share during the
 first quarter of 2000.
     The main reasons for the increase in earnings were higher prices for
 natural gas, increased production of natural gas and crude oil, and continued
 strong industry refining margins. These positive factors were partly offset by
 lower bitumen prices and higher costs of purchased fuel and utilities.
     Total revenues were $4,722 million, compared with $4,066 million during
 the first quarter of last year.
     Cash and marketable securities were $1,295 million on March 31, 2001,
 compared with $774 million at the same time last year. Essentially all of the
 shares that can be purchased under the company's latest share-purchase
 program, which runs from June 2000 to June 2001, were purchased in 2000. As a
 result, no shares were purchased under this program in the first quarter of
 2001.
     Bob Peterson, chairman, president and chief executive officer, said:
 "These excellent results reflect a continuation of the company's solid
 operating performance, plus increased resource production in a climate of
 strong prices and margins for many of our products, particularly natural gas."
 
 
     For further information:
 
     Investor relations      Media relations
     Jean Cote               Richard O'Farrell
     (416) 968-4262          (416) 968-4875
 
 
 
 
                          IMPERIAL OIL LIMITED
     ------------------------------------------------------------------------
 
     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS
     ------------------------------------------------------------------------
 
     OPERATING RESULTS
     -----------------
      The company's net earnings for the first quarter of 2001 were $382
 million or 96 cents per share, compared with $269 million or 63 cents a share
 for the three months ended March 31, 2000. The main reasons for the increase
 in earnings were higher natural gas prices, increased production of natural
 gas and crude oil, and continued strong industry refining margins. These
 positive factors were partly offset by lower crude bitumen prices and higher
 costs of purchased fuel and utilities. Total revenues were $4,722 million
 during the first quarter of 2001 compared with $4,066 million in 2000.
 
     Natural resources
      During the first three months of 2001, net earnings from natural
 resources were $282 million compared with $222 million for the same period
 last year. Prices for natural gas were higher compared with the same period
 last year. However, prices for crude bitumen were lower.
     Total crude oil and natural gas liquids production increased to 275
 thousand barrels a day in the first three months of 2001 from 254 thousand
 barrels a day in the first quarter of 2000.
     Gross production of conventional crude oil declined to 56 thousand
 barrels a day in the first three months of 2001 from 64 thousand barrels a day
 in the first quarter of 2000, due to natural reservoir decline and sale of the
 company's share of the Mitsue field and a number of small oil producing
 properties in the Pembina area of Alberta late last year. Production of
 natural gas liquids available for sale decreased to 29 thousand barrels a day
 during the first quarter of 2001, compared with 32 thousand barrels a day in
 the same period in 2000.
     The company's share of Syncrude's gross production increased to 59
 thousand barrels a day in the first quarter of 2001 from 44 thousand barrels a
 day in the corresponding three-month period in 2000, as a result of the
 absence of last year's coker maintenance shutdowns and start-up of the Aurora
 project.
     Heavy oil production at Cold Lake was 131 thousand barrels a day during
 the first quarter of 2001 compared with 114 thousand barrels a day in the same
 period last year, as a number of wells were returned to production upon
 completion of the steaming cycle phase.
     Gross production of natural gas in the first three months of 2001 was 621
 million cubic feet a day compared with 506 million cubic feet a day for the
 same period in 2000. Increased production of natural gas included deliveries
 from the Sable Offshore Energy Project which began production at the end of
 1999 and production from gas caps overlaying former oil fields at Bonnie Glen
 and Golden Spike in Alberta. Gross production of natural gas available for
 sale in the first quarter of 2001 was 445 million cubic feet a day, up from
 320 million cubic feet a day for the same period in 2000. Sales of natural gas
 increased to 499 million cubic feet a day from 453 million cubic feet a day.
 
     Petroleum products
     Net earnings from petroleum products were $120 million during the first
 quarter of 2001, compared with $51 million during the same period last year.
 Industry refining margins remained strong during the latest quarter. Marketing
 margins recovered with most of the improvement occurring in commercial
 markets.
     Excluding sales under purchase and sale agreements, sales of petroleum
 products averaged 68.5 million litres a day in the first quarter of 2001,
 compared with 67.4 million litres a day during the same period last year.
 
     Chemicals
     Net earnings in the first quarter of 2001 from chemical operations were
 one million dollars, compared with $18 million during the same period last
 year. The main reason for the decline was reduced industry margins on sales of
 polyethylene because higher raw material costs could not be recovered in the
 market place.
 
     Corporate and other
     Net earnings from the corporate and other operations were negative $21
 million during the first quarter of 2001 compared with negative $22 million
 for the same period last year.
 
     LIQUIDITY AND CAPITAL RE

SOURCES ------------------------------- Cash flow from operating activities was $493 million during the first quarter of 2001, compared with $257 million for the same period last year. The increase was mainly due to improved cash flows from higher earnings. During the first three months of 2001, total investing activities used $140 million cash, up from $112 million in the same period last year. Additions to property, plant and equipment was the main reason for the increase. The company did not purchase any shares during the first three months of 2001, compared with the purchase of 4.2 million shares for $120 million during the same period last year. The latest share-purchase program is now essentially complete. A quarterly cash dividend of 19.5 cents a share or a total of $78 million was paid in the first quarter of 2001, compared with 19.5 cents per share or a total of $84 million in the first quarter of 2000. The cash and marketable securities balance as of March 31, 2001 was $1,295 million, compared with $774 million at the same time last year. ------------------------------------------------------------------------- Special items gains/(losses) - after tax (millions of dollars) ------------------------------------------------------------------------- 2001 2000 ---- ---- Restated Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 -------- -- -- -- -- -- -- -- -- Natural resources - 25 61 - - Petroleum products 1 - - 6 - Chemicals - - - - - Corporate & other - (5) - - - 2001 2000 1999 1998 1997 ---- ---- ---- ---- ---- Restated -------- Natural resources Asset sales - 86 4 15 143 Tax refunds - - - 133 - Petroleum products Asset sales 1 6 12 7 - Chemicals Asset sales - - 1 25 36 Corporate & other Asset sales - 4 - - - Expenses for redemption of U.S. debt - (9) (18) - - IMPERIAL OIL LIMITED ------------------------------------------------------------------------ CONSOLIDATED STATEMENT OF EARNINGS Three months (unaudited) to March 31 millions of dollars 2001 2000 ------------------------------------------------------------------------ REVENUES Operating revenues 4,697 4,049 Investment and other income (2) 25 17 ----------------- TOTAL REVENUES 4,722 4,066 ----------------- EXPENSES Exploration 10 4 Purchases of crude oil and products 2,776 2,444 Operating 770 665 Federal excise tax 279 283 Depreciation and depletion 186 181 Financing costs (3) 42 32 ----------------- TOTAL EXPENSES 4,063 3,609 ----------------- EARNINGS BEFORE INCOME TAXES 659 457 INCOME TAXES 277 188 ----------------- NET EARNINGS 382 269 ----------------- PER-SHARE INFORMATION - dollars Net earnings 0.96 0.63 Dividends 0.195 0.195 CONSOLIDATED STATEMENT OF RETAINED EARNINGS Three months (unaudited) to March 31 millions of dollars 2001 2000 ------------------------------------------------------------------------ RETAINED EARNINGS AT BEGINNING OF PERIOD 2,282 2,225 Net earnings for the period 382 269 Share purchases (4) - (99) Dividends (78) (84) ----------------- RETAINED EARNINGS AT END OF PERIOD 2,586 2,311 ----------------- IMPERIAL OIL LIMITED ------------------------------------------------------------------------ CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) Three months inflow/(outflow) to March 31 millions of dollars 2001 2000 ------------------------------------------------------------------------ OPERATING ACTIVITIES Net earnings 382 269 Depreciation and depletion 186 181 (Gain)/loss on asset sales, after tax (2) (1) - Future income taxes and other (4) (97) ----------------- Total cash flow from earnings 563 353 Accounts receivable 89 (47) Inventories and prepaid expenses (288) (192) Income taxes payable (202) 35 Accounts payable and other 331 108 ----------------- Change in operating assets and liabilities (70) (96) ----------------- CASH FROM OPERATING ACTIVITIES 493 257 ----------------- INVESTING ACTIVITIES Additions to property, plant and equipment (154) (118) Proceeds from asset sales (2) 14 6 Proceeds from marketable securities - 58 Additions to marketable securities - (58) CASH FROM(USED IN) ----------------- INVESTING ACTIVITIES (140) (112) ----------------- CASH FLOW BEFORE FINANCING ACTIVITIES 353 145 FINANCING ACTIVITIES Common shares purchased (4) - (120) Dividends paid (78) (84) ----------------- CASH FROM(USED IN) FINANCING ACTIVITIES (78) (204) ----------------- INCREASE(DECREASE) IN CASH 275 (59) CASH AT BEGINNING OF PERIOD 1,020 775 ----------------- CASH AT END OF PERIOD 1,295 716 ----------------- IMPERIAL OIL LIMITED ------------------------------------------------------------------------ CONSOLIDATED BALANCE SHEET As at As at (unaudited) Mar.31 Dec.31 millions of dollars 2001 2000 ------------------------------------------------------------------------ ASSETS Current assets Cash 1,295 1,020 Accounts receivable 1,407 1,496 Inventories of crude oil and products 707 421 Materials, supplies and prepaid expenses 164 162 Future income tax assets 344 377 ----------------- Total current assets 3,917 3,476 Investments and other long-term assets 116 127 Property, plant and equipment 7,333 7,369 Goodwill and other intangible assets 248 250 ----------------- TOTAL ASSETS (a) 11,614 11,222 ----------------- LIABILITIES Current liabilities Short-term debt 75 75 Accounts payable and accrued liabilities 2,200 1,868 Income taxes payable 979 1,182 Current portion of long-term debt 299 292 ----------------- Total current liabilities 3,553 3,417 Long-term debt (5) 936 928 Other long-term obligations 1,042 1,044 Future income tax liabilities 1,458 1,512 ----------------- TOTAL LIABILITIES 6,989 6,901 SHAREHOLDERS' EQUITY 4,625 4,321 ----------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 11,614 11,222 ----------------- (a) TOTAL ASSETS BY SEGMENT Natural resources 5,208 5,288 Petroleum products 4,993 4,812 Chemicals 431 379 Corporate and other 1,297 1,022 Intersegment receivables eliminated in consolidation (315) (279) ----------------- TOTAL ASSETS 11,614 11,222 ----------------- ------------------------------------------------------------------------ Approved by the directors April 24, 2001 Chairman, president and Controller and chief executive officer senior vice-president, finance and administration ------------------------------------------------------------------------ IMPERIAL OIL LIMITED ------------------------------------------------------------------------ BUSINESS SEGMENTS Three months (unaudited) to March 31 millions of dollars 2001 2000 ------------------------------------------------------------------------ REVENUES Natural resources External 1,086 735 Intersegment 598 636 ----------------- Total 1,684 1,371 ----------------- Petroleum products External (a) 3,358 3,104 Intersegment 427 317 ----------------- Total 3,785 3,421 ----------------- Chemicals External 260 216 Intersegment 89 49 ----------------- Total 349 265 ----------------- Corporate and other External 18 11 ----------------- Total 18 11 ----------------- Total external revenues (b) 4,722 4,066 ----------------- EARNINGS Natural resources 282 222 Petroleum products 120 51 Chemicals 1 18 Corporate and other (21) (22) ----------------- Net earnings 382 269 ----------------- CASH FLOW FROM EARNINGS Natural resources 365 295 Petroleum products 203 47 Chemicals 3 22 Corporate and other (8) (11) ----------------- Total cash flow from earnings 563 353 ----------------- CAPITAL AND EXPLORATION EXPENDITURES Additions to property, plant and equipment Natural resources 113 83 Petroleum products 34 33 Chemicals 7 2 ----------------- Total additions to property, plant and equipment 154 118 Exploration expense, natural resources 10 4 ----------------- Total capital and exploration expenditures 164 122 ----------------- (a) Includes crude sales made in order to optimize refining operations. (b) Includes export sales to the United States 638 562 ------------------------------------------------------------------------ IMPERIAL OIL LIMITED ------------------------------------------------------------------------ OPERATING STATISTICS Three months to March 31 (unaudited) 2001 2000 ------------------------------------------------------------------------ GROSS CRUDE OIL AND NGL PRODUCTION (thousands of barrels a day) Conventional 56 64 Cold Lake 131 114 Syncrude 59 44 ----------------- Total crude oil production 246 222 Natural gas liquids (NGL's) available for sale 29 32 ----------------- Total crude oil and NGL production 275 254 ----------------- NGL SALES (thousands of barrels a day) 46 55 NATURAL GAS (millions of cubic feet a day) Production (gross) 621 506 Production available for sale (gross) 445 320 Sales 499 453 AVERAGE PRICES (dollars) Conventional crude oil sales (a barrel) 39.40 38.89 Par crude oil price at Edmonton (a barrel) 43.48 41.73 Heavy crude oil at Hardisty (Bow River, a barrel) 26.17 35.16 Natural gas sales (a thousand cubic feet) 9.93 2.94 PETROLEUM PRODUCTS SALES (millions of litres a day) Gasolines 29.9 30.0 Heating, diesel and jet fuels 29.5 29.2 Heavy fuel oils 5.1 4.0 Lube oils and other products 4.0 4.2 ----------------- Net petroleum products sales 68.5 67.4 Sales under purchase and sale agreements 11.6 11.2 ----------------- Total petroleum products sales 80.1 78.6 ----------------- TOTAL REFINERY THROUGHPUT (millions of litres a day) 75.8 72.7 REFINERY CAPACITY UTILIZATION (percent) 96 92 PETROCHEMICAL SALES (thousands of tonnes a day) 3.4 3.1 ------------------------------------------------------------------------ IMPERIAL OIL LIMITED ------------------------------------------------------------------------ SHARE OWNERSHIP, TRADING AND PERFORMANCE Three months to March 31 (unaudited) 2001 2000 ------------------------------------------------------------------------ RETURN ON AVERAGE CAPITAL EMPLOYED (a) (rolling 4 quarters, percent) 28.6 14.3 RETURN ON AVERAGE SHAREHOLDERS' EQUITY (rolling 4 quarters, percent) 34.8 17.0 SHARE OWNERSHIP Outstanding shares (thousands) Monthly weighted average 398,263 430,094 At March 31 398,263 427,235 Number of shareholders At March 31 16,915 17,778 SHARE PRICES (dollars) High 40.10 34.10 Low 36.67 26.50 Close at March 31 38.45 30.00 (a) Capital employed is defined as short and long-term debt and shareholders' equity. ------------------------------------------------------------------------ IMPERIAL OIL LIMITED ------------------------------------------------------------------------ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited) ---------------------------------------------------------------------- 1.Accounting principles These consolidated financial statements follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual consolidated financial statements. 2.Investment and Other Income Investment and other income includes gains and losses on asset sales as follows: Three months millions of dollars 2001 2000 ------------------------------------------------------------------------ Proceeds from asset sales 14 6 Assets and liabilities disposed of (a) 13 6 ----------------- Gain/(loss) on asset sales, before tax 1 - ----------------- Gain/(loss) on asset sales, after tax 1 - ----------------- (a) Assets sold did not include cash. 3.Financing Costs Three months millions of dollars 2001 2000 ------------------------------------------------------------------------ Debt related interest 25 25 Other interest 1 1 ----------------- Total interest expense 26 26 Foreign exchange expense on long-term debt 16 6 ----------------- Total financing costs 42 32 ----------------- ------------------------------------------------------------------------ 4.Share Purchase Programs As at As at Mar.31 Dec.31 Thousands of shares 2001 2000 ------------------------------------------------------------------------ Authorized 450,000 450,000 Common shares outstanding 398,263 398,263 In 1995 through 1999, the company purchased shares under five 12-month normal course share-purchase programs. Also in 1996, the company undertook an auction tender in which 72 million shares were purchased at a total cost of $1,440 million. On June 21, 2000 another 12-month normal course program was implemented with an allowable purchase of 20.9 million shares (five percent of the total on June 16, 2000), less any shares purchased by the employee savings plan and company pension fund. The latest share-purchase program is now essentially complete. The results of these activities are as shown below. millions of Year Shares Dollars ------------------------------------------------------------------------ 1995 - 1999 (a) 150.0 3,136 2000 - First quarter 4.2 120 Full Year 33.2 1,208 2001 - First quarter - - Cumulative purchases to date 183.2 4,344 Exxon Mobil Corporation's participation in the above maintained its ownership interest in Imperial at 69.6 percent. The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of retained earnings. (a) Restated to reflect a three-for-one share split in 1998. 5.Long-term Debt As at As at Mar.31 Dec.31 millions of dollars 2001 2000 ------------------------------------------------------------------------ Long-term debt (at period-end exchange rates) 1,088 1,035 Foreign-exchange loss on U.S.$ debt (a) (152) (107) ----------------- Long-term debt (b) 936 928 ----------------- (a) The foreign-exchange loss on U.S.-dollar debt is being amortized to earnings over the remaining life of the debt. (b) The company's 8.3% U.S. dollar debt, which will mature on August 20, 2001, has been reclassified to the current portion of long-term debt in the balance sheet. ------------------------------------------------------------------------

SOURCE Imperial Oil Limited
    TORONTO, April 24 /PRNewswire/ - Imperial Oil Limited (Amex:   IMO)
 (Toronto: IMO) today announced first-quarter net earnings of $382 million or
 96 cents a share, compared with $269 million or 63 cents a share during the
 first quarter of 2000.
     The main reasons for the increase in earnings were higher prices for
 natural gas, increased production of natural gas and crude oil, and continued
 strong industry refining margins. These positive factors were partly offset by
 lower bitumen prices and higher costs of purchased fuel and utilities.
     Total revenues were $4,722 million, compared with $4,066 million during
 the first quarter of last year.
     Cash and marketable securities were $1,295 million on March 31, 2001,
 compared with $774 million at the same time last year. Essentially all of the
 shares that can be purchased under the company's latest share-purchase
 program, which runs from June 2000 to June 2001, were purchased in 2000. As a
 result, no shares were purchased under this program in the first quarter of
 2001.
     Bob Peterson, chairman, president and chief executive officer, said:
 "These excellent results reflect a continuation of the company's solid
 operating performance, plus increased resource production in a climate of
 strong prices and margins for many of our products, particularly natural gas."
 
 
     For further information:
 
     Investor relations      Media relations
     Jean Cote               Richard O'Farrell
     (416) 968-4262          (416) 968-4875
 
 
 
 
                          IMPERIAL OIL LIMITED
     ------------------------------------------------------------------------
 
     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS
     ------------------------------------------------------------------------
 
     OPERATING RESULTS
     -----------------
      The company's net earnings for the first quarter of 2001 were $382
 million or 96 cents per share, compared with $269 million or 63 cents a share
 for the three months ended March 31, 2000. The main reasons for the increase
 in earnings were higher natural gas prices, increased production of natural
 gas and crude oil, and continued strong industry refining margins. These
 positive factors were partly offset by lower crude bitumen prices and higher
 costs of purchased fuel and utilities. Total revenues were $4,722 million
 during the first quarter of 2001 compared with $4,066 million in 2000.
 
     Natural resources
      During the first three months of 2001, net earnings from natural
 resources were $282 million compared with $222 million for the same period
 last year. Prices for natural gas were higher compared with the same period
 last year. However, prices for crude bitumen were lower.
     Total crude oil and natural gas liquids production increased to 275
 thousand barrels a day in the first three months of 2001 from 254 thousand
 barrels a day in the first quarter of 2000.
     Gross production of conventional crude oil declined to 56 thousand
 barrels a day in the first three months of 2001 from 64 thousand barrels a day
 in the first quarter of 2000, due to natural reservoir decline and sale of the
 company's share of the Mitsue field and a number of small oil producing
 properties in the Pembina area of Alberta late last year. Production of
 natural gas liquids available for sale decreased to 29 thousand barrels a day
 during the first quarter of 2001, compared with 32 thousand barrels a day in
 the same period in 2000.
     The company's share of Syncrude's gross production increased to 59
 thousand barrels a day in the first quarter of 2001 from 44 thousand barrels a
 day in the corresponding three-month period in 2000, as a result of the
 absence of last year's coker maintenance shutdowns and start-up of the Aurora
 project.
     Heavy oil production at Cold Lake was 131 thousand barrels a day during
 the first quarter of 2001 compared with 114 thousand barrels a day in the same
 period last year, as a number of wells were returned to production upon
 completion of the steaming cycle phase.
     Gross production of natural gas in the first three months of 2001 was 621
 million cubic feet a day compared with 506 million cubic feet a day for the
 same period in 2000. Increased production of natural gas included deliveries
 from the Sable Offshore Energy Project which began production at the end of
 1999 and production from gas caps overlaying former oil fields at Bonnie Glen
 and Golden Spike in Alberta. Gross production of natural gas available for
 sale in the first quarter of 2001 was 445 million cubic feet a day, up from
 320 million cubic feet a day for the same period in 2000. Sales of natural gas
 increased to 499 million cubic feet a day from 453 million cubic feet a day.
 
     Petroleum products
     Net earnings from petroleum products were $120 million during the first
 quarter of 2001, compared with $51 million during the same period last year.
 Industry refining margins remained strong during the latest quarter. Marketing
 margins recovered with most of the improvement occurring in commercial
 markets.
     Excluding sales under purchase and sale agreements, sales of petroleum
 products averaged 68.5 million litres a day in the first quarter of 2001,
 compared with 67.4 million litres a day during the same period last year.
 
     Chemicals
     Net earnings in the first quarter of 2001 from chemical operations were
 one million dollars, compared with $18 million during the same period last
 year. The main reason for the decline was reduced industry margins on sales of
 polyethylene because higher raw material costs could not be recovered in the
 market place.
 
     Corporate and other
     Net earnings from the corporate and other operations were negative $21
 million during the first quarter of 2001 compared with negative $22 million
 for the same period last year.
 
     LIQUIDITY AND CAPITAL RESOURCES
     -------------------------------
     Cash flow from operating activities was $493 million during the first
 quarter of 2001, compared with $257 million for the same period last year. The
 increase was mainly due to improved cash flows from higher earnings.
     During the first three months of 2001, total investing activities used
 $140 million cash, up from $112 million in the same period last year.
 Additions to property, plant and equipment was the main reason for the
 increase.
     The company did not purchase any shares during the first three months of
 2001, compared with the purchase of 4.2 million shares for $120 million during
 the same period last year. The latest share-purchase program is now
 essentially complete.
     A quarterly cash dividend of 19.5 cents a share or a total of $78 million
 was paid in the first quarter of 2001, compared with 19.5 cents per share or a
 total of $84 million in the first quarter of 2000.
     The cash and marketable securities balance as of March 31, 2001 was
 $1,295 million, compared with $774 million at the same time last year.
 
 
 
     -------------------------------------------------------------------------
                    Special items gains/(losses) - after tax
                              (millions of dollars)
     -------------------------------------------------------------------------
 
 
 
                                 2001                          2000
                                 ----                          ----
     Restated          Q4     Q3     Q2     Q1       Q4     Q3     Q2     Q1
     --------          --     --     --     --       --     --     --     --
 
     Natural resources                       -       25     61      -      -
 
     Petroleum products                      1        -      -      6      -
 
     Chemicals                               -        -      -      -      -
 
     Corporate & other                       -       (5)     -      -      -
 
 
 
 
 
 
 
 
                                    2001     2000     1999     1998     1997
                                    ----     ----     ----     ----     ----
     Restated
     --------
     Natural resources
        Asset sales                    -       86        4       15      143
        Tax refunds                    -        -        -      133       -
 
     Petroleum products
        Asset sales                    1        6       12        7       -
 
     Chemicals
        Asset sales                    -        -        1       25      36
 
     Corporate & other
        Asset sales                    -        4        -       -        -
        Expenses for redemption of
         U.S. debt                     -       (9)      (18)     -        -
 
 
 
 
                              IMPERIAL OIL LIMITED
 
     ------------------------------------------------------------------------
 
     CONSOLIDATED STATEMENT OF EARNINGS                       Three months
     (unaudited)                                              to March 31
     millions of dollars                                     2001      2000
     ------------------------------------------------------------------------
     REVENUES
       Operating revenues                                      4,697    4,049
       Investment and other income (2)                            25       17
                                                            -----------------
     TOTAL REVENUES                                            4,722    4,066
                                                            -----------------
 
     EXPENSES
       Exploration                                                10        4
       Purchases of crude oil
          and products                                         2,776    2,444
       Operating                                                 770      665
       Federal excise tax                                        279      283
       Depreciation and depletion                                186      181
       Financing costs (3)                                        42       32
                                                            -----------------
     TOTAL EXPENSES                                            4,063    3,609
                                                            -----------------
     EARNINGS BEFORE INCOME TAXES                                659      457
 
     INCOME TAXES                                                277      188
                                                            -----------------
     NET EARNINGS                                                382      269
                                                            -----------------
     PER-SHARE INFORMATION - dollars
       Net earnings                                             0.96     0.63
       Dividends                                                0.195    0.195
 
 
 
 
     CONSOLIDATED STATEMENT OF RETAINED EARNINGS              Three months
     (unaudited)                                               to March 31
     millions of dollars                                      2001     2000
     ------------------------------------------------------------------------
     RETAINED EARNINGS AT BEGINNING
        OF PERIOD                                              2,282    2,225
 
       Net earnings for the period                               382      269
       Share purchases (4)                                         -      (99)
       Dividends                                                 (78)     (84)
                                                            -----------------
     RETAINED EARNINGS AT END OF PERIOD                        2,586    2,311
                                                            -----------------
 
 
 
                               IMPERIAL OIL LIMITED
 
     ------------------------------------------------------------------------
     CONSOLIDATED STATEMENT OF CASH FLOWS
     (unaudited)                                              Three months
     inflow/(outflow)                                         to March 31
     millions of dollars                                     2001      2000
     ------------------------------------------------------------------------
     OPERATING ACTIVITIES
       Net earnings                                              382      269
       Depreciation and depletion                                186      181
       (Gain)/loss on asset sales,
          after tax (2)                                           (1)       -
       Future income taxes and other                              (4)     (97)
                                                            -----------------
       Total cash flow from earnings                             563      353
 
       Accounts receivable                                        89      (47)
       Inventories and prepaid expenses                         (288)    (192)
       Income taxes payable                                     (202)      35
       Accounts payable and other                                331      108
                                                            -----------------
       Change in operating assets
          and liabilities                                        (70)     (96)
                                                            -----------------
     CASH FROM OPERATING ACTIVITIES                              493      257
                                                            -----------------
     INVESTING ACTIVITIES
       Additions to property, plant
          and equipment                                         (154)    (118)
       Proceeds from asset sales (2)                              14        6
       Proceeds from marketable
          securities                                               -       58
       Additions to marketable
          securities                                               -      (58)
 
     CASH FROM(USED IN)                                     -----------------
       INVESTING ACTIVITIES                                     (140)    (112)
                                                            -----------------
     CASH FLOW BEFORE FINANCING ACTIVITIES                       353      145
 
     FINANCING ACTIVITIES
       Common shares purchased (4)                                 -     (120)
       Dividends paid                                            (78)     (84)
                                                            -----------------
     CASH FROM(USED IN)
       FINANCING ACTIVITIES                                      (78)    (204)
                                                            -----------------
     INCREASE(DECREASE) IN CASH                                  275      (59)
     CASH AT BEGINNING OF PERIOD                               1,020      775
                                                            -----------------
     CASH AT END OF PERIOD                                     1,295      716
                                                            -----------------
 
 
 
                               IMPERIAL OIL LIMITED
 
     ------------------------------------------------------------------------
 
     CONSOLIDATED BALANCE SHEET                              As at     As at
     (unaudited)                                             Mar.31   Dec.31
     millions of dollars                                     2001      2000
     ------------------------------------------------------------------------
     ASSETS
       Current assets
          Cash                                                 1,295    1,020
          Accounts receivable                                  1,407    1,496
          Inventories of crude oil and products                  707      421
          Materials, supplies and prepaid expenses               164      162
          Future income tax assets                               344      377
                                                            -----------------
       Total current assets                                    3,917    3,476
       Investments and other long-term assets                    116      127
       Property, plant and equipment                           7,333    7,369
       Goodwill and other intangible assets                      248      250
                                                            -----------------
     TOTAL ASSETS (a)                                         11,614   11,222
                                                            -----------------
     LIABILITIES
       Current liabilities
          Short-term debt                                         75       75
          Accounts payable and accrued liabilities             2,200    1,868
          Income taxes payable                                   979    1,182
          Current portion of long-term debt                      299      292
                                                            -----------------
       Total current liabilities                               3,553    3,417
       Long-term debt (5)                                        936      928
       Other long-term obligations                             1,042    1,044
       Future income tax liabilities                           1,458    1,512
                                                            -----------------
     TOTAL LIABILITIES                                         6,989    6,901
     SHAREHOLDERS' EQUITY                                      4,625    4,321
                                                            -----------------
     TOTAL LIABILITIES AND
       SHAREHOLDERS' EQUITY                                   11,614   11,222
                                                            -----------------
     (a) TOTAL ASSETS BY SEGMENT
       Natural resources                                       5,208    5,288
       Petroleum products                                      4,993    4,812
       Chemicals                                                 431      379
       Corporate and other                                     1,297    1,022
       Intersegment receivables
          eliminated in consolidation                           (315)    (279)
                                                            -----------------
       TOTAL ASSETS                                           11,614   11,222
                                                            -----------------
 
     ------------------------------------------------------------------------
     Approved by the directors April 24, 2001
 
 
 
 
 
 
     Chairman, president and               Controller and
     chief executive officer               senior vice-president,
                                           finance and administration
     ------------------------------------------------------------------------
 
 
 
 
 
                               IMPERIAL OIL LIMITED
 
     ------------------------------------------------------------------------
     BUSINESS SEGMENTS                                        Three months
     (unaudited)                                              to March 31
     millions of dollars                                     2001      2000
     ------------------------------------------------------------------------
     REVENUES
       Natural resources
          External                                             1,086      735
          Intersegment                                           598      636
                                                            -----------------
          Total                                                1,684    1,371
                                                            -----------------
       Petroleum products
          External (a)                                         3,358    3,104
          Intersegment                                           427      317
                                                            -----------------
          Total                                                3,785    3,421
                                                            -----------------
       Chemicals
          External                                               260      216
          Intersegment                                            89       49
                                                            -----------------
          Total                                                  349      265
                                                            -----------------
       Corporate and other
          External                                                18       11
                                                            -----------------
          Total                                                   18       11
                                                            -----------------
     Total external revenues (b)                               4,722    4,066
                                                            -----------------
     EARNINGS
       Natural resources                                         282      222
       Petroleum products                                        120       51
       Chemicals                                                   1       18
       Corporate and other                                       (21)     (22)
                                                            -----------------
     Net earnings                                                382      269
                                                            -----------------
     CASH FLOW FROM EARNINGS
       Natural resources                                         365      295
       Petroleum products                                        203       47
       Chemicals                                                   3       22
       Corporate and other                                        (8)     (11)
                                                            -----------------
     Total cash flow from earnings                               563      353
                                                            -----------------
     CAPITAL AND EXPLORATION EXPENDITURES
       Additions to property,
        plant and equipment
          Natural resources                                      113       83
          Petroleum products                                      34       33
          Chemicals                                                7        2
                                                            -----------------
       Total additions to property,
          plant and equipment                                    154      118
       Exploration expense,
          natural resources                                       10        4
                                                            -----------------
     Total capital and exploration
       expenditures                                              164      122
                                                            -----------------
     (a) Includes crude sales made in order to optimize refining operations.
     (b) Includes export sales
          to the United States                                   638      562
 
     ------------------------------------------------------------------------
 
 
 
 
                               IMPERIAL OIL LIMITED
 
     ------------------------------------------------------------------------
     OPERATING STATISTICS                                     Three months
                                                              to March 31
     (unaudited)                                             2001      2000
     ------------------------------------------------------------------------
     GROSS CRUDE OIL AND NGL PRODUCTION
     (thousands of barrels a day)
       Conventional                                               56       64
       Cold Lake                                                 131      114
       Syncrude                                                   59       44
                                                            -----------------
       Total crude oil production                                246      222
       Natural gas liquids (NGL's)
          available for sale                                      29       32
                                                            -----------------
       Total crude oil and
          NGL production                                         275      254
                                                            -----------------
     NGL SALES (thousands of barrels a day)                       46       55
 
     NATURAL GAS
     (millions of cubic feet a day)
       Production (gross)                                        621      506
       Production available
          for sale (gross)                                       445      320
       Sales                                                     499      453
 
     AVERAGE PRICES (dollars)
       Conventional crude oil sales
          (a barrel)                                           39.40    38.89
       Par crude oil price
          at Edmonton (a barrel)                               43.48    41.73
       Heavy crude oil at Hardisty
          (Bow River, a barrel)                                26.17    35.16
       Natural gas sales
          (a thousand cubic feet)                               9.93     2.94
 
     PETROLEUM PRODUCTS SALES
     (millions of litres a day)
       Gasolines                                                29.9     30.0
       Heating, diesel and jet fuels                            29.5     29.2
       Heavy fuel oils                                           5.1      4.0
       Lube oils and other products                              4.0      4.2
                                                            -----------------
       Net petroleum products sales                             68.5     67.4
       Sales under purchase and
          sale agreements                                       11.6     11.2
                                                            -----------------
       Total petroleum products sales                           80.1     78.6
                                                            -----------------
     TOTAL REFINERY THROUGHPUT
     (millions of litres a day)                                 75.8     72.7
 
     REFINERY CAPACITY UTILIZATION
     (percent)                                                    96       92
 
     PETROCHEMICAL SALES
     (thousands of tonnes a day)                                 3.4      3.1
 
     ------------------------------------------------------------------------
 
 
 
 
 
                               IMPERIAL OIL LIMITED
 
     ------------------------------------------------------------------------
     SHARE OWNERSHIP, TRADING AND PERFORMANCE                 Three months
                                                              to March 31
     (unaudited)                                             2001      2000
     ------------------------------------------------------------------------
     RETURN ON AVERAGE CAPITAL EMPLOYED (a)
       (rolling 4 quarters, percent)                           28.6     14.3
 
     RETURN ON AVERAGE SHAREHOLDERS' EQUITY
       (rolling 4 quarters, percent)                           34.8     17.0
 
     SHARE OWNERSHIP
       Outstanding shares (thousands)
          Monthly weighted average                          398,263  430,094
          At March 31                                       398,263  427,235
       Number of shareholders
          At March 31                                        16,915   17,778
 
     SHARE PRICES (dollars)
       High                                                   40.10    34.10
       Low                                                    36.67    26.50
       Close at March 31                                      38.45    30.00
 
     (a) Capital employed is defined as short and long-term debt and
     shareholders' equity.
 
 
 
 
 
     ------------------------------------------------------------------------
                             IMPERIAL OIL LIMITED
     ------------------------------------------------------------------------
     NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
     ----------------------------------------------------------------------
     1.Accounting principles
 
     These consolidated financial statements follow the same accounting
     policies and methods of computation as, and should be read in
     conjunction with, the most recent annual consolidated financial
     statements.
 
 
 
     2.Investment and Other Income
 
     Investment and other income includes gains and losses on asset sales
     as follows:
                                                              Three months
     millions of dollars                                     2001      2000
     ------------------------------------------------------------------------
     Proceeds from asset sales                                    14        6
     Assets and liabilities disposed of (a)                       13        6
                                                            -----------------
     Gain/(loss) on asset sales,
       before tax                                                  1        -
                                                            -----------------
     Gain/(loss) on asset sales,
       after tax                                                   1        -
                                                            -----------------
     (a) Assets sold did not include cash.
 
 
 
     3.Financing Costs
                                                              Three months
     millions of dollars                                     2001      2000
     ------------------------------------------------------------------------
     Debt related interest                                        25       25
     Other interest                                                1        1
                                                            -----------------
     Total interest expense                                       26       26
     Foreign exchange expense on
       long-term debt                                             16        6
                                                            -----------------
     Total financing costs                                        42       32
                                                            -----------------
 
 
     ------------------------------------------------------------------------
     4.Share Purchase Programs                      As at              As at
                                                    Mar.31            Dec.31
     Thousands of shares                             2001              2000
     ------------------------------------------------------------------------
     Authorized                                    450,000            450,000
     Common shares outstanding                     398,263            398,263
 
     In 1995 through 1999, the company purchased shares under five 12-month
     normal course share-purchase programs. Also in 1996, the company
     undertook an auction tender in which 72 million shares were purchased
     at a total cost of $1,440 million. On June 21, 2000 another 12-month
     normal course program was implemented with an allowable purchase of
     20.9 million shares (five percent of the total on June 16, 2000), less
     any shares purchased by the employee savings plan and company pension
     fund. The latest share-purchase program is now essentially complete.
     The results of these activities are as shown below.
 
                                                           millions of
          Year                                      Shares            Dollars
     ------------------------------------------------------------------------
          1995 - 1999 (a)                            150.0              3,136
 
          2000 - First quarter                         4.2                120
                 Full Year                            33.2              1,208
 
          2001 - First quarter                           -                  -
 
     Cumulative purchases to date                    183.2              4,344
 
     Exxon Mobil Corporation's participation in the above maintained its
     ownership interest in Imperial at 69.6 percent.
 
     The excess of the purchase cost over the stated value of shares
     purchased has been recorded as a distribution of retained earnings.
 
     (a) Restated to reflect a three-for-one share split in 1998.
 
 
 
     5.Long-term Debt                                        As at     As at
                                                             Mar.31   Dec.31
     millions of dollars                                      2001     2000
     ------------------------------------------------------------------------
     Long-term debt (at period-end exchange rates)             1,088    1,035
     Foreign-exchange loss on U.S.$ debt (a)                    (152)    (107)
                                                            -----------------
     Long-term debt (b)                                          936      928
                                                            -----------------
     (a) The foreign-exchange loss on U.S.-dollar debt is being amortized
     to earnings over the remaining life of the debt.
     (b) The company's 8.3% U.S. dollar debt, which will mature on August
     20, 2001, has been reclassified to the current portion of long-term
     debt in the balance sheet.
 
     ------------------------------------------------------------------------
 
 
 SOURCE Imperial Oil Limited