Imperial Oil Limited (NYSE:IMO) Q3 2024 Earnings Conference Call November 1, 2024 11:00 AM ET
Company Participants
Peter Shaw - VP, IR
Brad Corson - Chairman, President and CEO
Dan Lyons - SVP, Finance and Administration
Sherri Evers - SVP, Sustainability, Commercial Development and Product Solutions
Cheryl Gomez-Smith - SVP, Upstream
Conference Call Participants
Manav Gupta - UBS
Menno Hulshof - TD Securities
Greg Pardy - RBC Capital Markets
Doug Leggate - Wolfe Research
Travis Wood - National Bank Financial
Neil Mehta - Goldman Sachs
Operator
Good day. And welcome to the Imperial Oil Third Quarter 2024 Earnings Call. As a reminder, today's conference is being recorded.
At this time, I would like to turn the call over to Mr. Peter Shaw, Vice President of Investor Relations. Please go ahead.
Peter Shaw
Good morning, everybody. And welcome to our third quarter earnings conference call. I'm joined this morning by Imperial's senior management team, including Brad Corson, Chairman, President and CEO; Dan Lyons, Senior Vice President, Finance and Administration; Sherri Evers, Senior Vice President of Sustainability, Commercial Development and Product Solutions; and Cheryl Gomez-Smith, Senior Vice President of the Upstream. Today's comments include reference to non-GAAP financial measures. The definitions and reconciliations of these measures can be found in Attachment 6 of our most recent press release and are available on our Web site with a link to today's conference call. Today's comments may also contain forward-looking information. Any forward-looking information is not a guarantee of future performance and actual future performance and operating results can vary materially depending on a number of factors and assumptions. Forward-looking information and the risk factors and assumptions are described in further detail on our third quarter earnings release that we issued this morning as well as our most recent Form 10-K. All these documents are available on SEDAR plus, EDGAR and our Web site. So I'd ask you to refer to those. Brad is going to start with some opening remarks and then hand it over to Dan, who's going to provide a financial update and then Brad will provide an operations update. Once that is done, we will follow with the Q&A session. So with that, I will turn it over to Brad for his opening remarks.
Brad Corson
Thank you, Peter. Good morning, everybody. And welcome to our third quarter earnings call. I hope everyone is doing well. I'm really pleased to report another strong quarter for Imperial. We saw excellent operational performance across all of our assets, both Upstream and Downstream, which more than offset the impact of lower commodity prices on a sequential quarter-over-quarter basis. Despite the lower prices, net income was actually up nearly 10% versus the second quarter. I'm also happy to report that operational performance has remained strong as we’ve moved into the fourth quarter. Our Upstream once again saw record production and continued reduction in unit costs, which more than offset the reduction in price realizations due to the softening of WTI prices. And with TMX in operation, we're seeing the value of additional egress and narrower and more stable differentials that provide a significant net benefit to Imperial. Our Downstream business also performed well over the quarter and contributed solid earnings despite significant planned turnaround activity and softening of refinery crack spreads. All three of our manufacturing assets continue to realize the structural benefits of advantaged feedstocks and import parity pricing in the Canadian market.