Imperial Well-positioned to Weather Market Challenges
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Over its long history, Imperial has faced numerous periods of low global crude oil prices. In the current challenging market environment caused by the COVID-19 pandemic and commodity price decreases, the company continues to demonstrate its long-standing commitment to financial strength, capital and operating expense discipline and maximizing long-term shareholder value.
Imperial is currently in a low capital investment period; however, the company is currently reviewing spending plans in an effort to identify further efficiency opportunities.
“We are naturally at a lower spending period in the cycle, with the majority of our capital being focused on maintaining safe, reliable and productive operations,” said Brad Corson, chairman, president and chief executive officer of Imperial.
“We will continue to closely monitor and have flexibility in our plans to respond to market conditions, and rigorously examine operating costs and capital investments to maximize long term shareholder value in whatever business environment we operate,” added Corson.
Imperial is taking proactive and preventative measures to protect the health and safety of our workforce and do its part to limit the spread of the novel coronavirus in the community. The company is monitoring the situation closely and has implemented comprehensive plans across its operations.
“We remain focused on maintaining safe and reliable operations and on the health and wellbeing of our employees and their families, business partners and local communities during this difficult time. We are committed to doing our part to reduce the impact of COVID-19 in our communities,” said Corson.
Imperial, with a Canadian industry-leading debt-to-capital ratio and credit rating, over $1.7 billion of cash on hand at year-end 2019, low sustaining capital requirements and integration across its value chain, is well-positioned for the challenges presented in the current business environment.
“Imperial’s integrated business model and strong financial position provide resilience. The company is well-positioned to weather periods of market volatility, including reduced demand and low crude oil prices,” said Corson.
About Imperial OIl
Imperial Oil Limited is Canada’s largest producer of crude oil and a leading producer of natural gas. Imperial, which is 69.6 percent owned by the U.S. corporation Exxon, is Canada’s largest refiner of petroleum products, providing the wide variety of products and services that appear under the Esso brand name at more than 2,700 Esso stations across Canada. The company has vast reserves of oil sands, from which it extracts heavy oil (or bitumen), which can be converted to crude oil or used for other purposes. It also produces and markets coal and petrochemicals. Imperial has made itself known for its support of Canadian culture, health, education, and community services.
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