Imperial Oil Posts Sharp Decline In Q2 Earnings, Renews Share Buyback Program
Portfolio Pulse from Lekha Gupta
Imperial Oil Ltd (AMEX:IMO) reported a sharp decline in Q2 2023 earnings, with EPS of C$1.15, down from C$3.63 a year ago. Net income also fell to C$675 million from C$2.41 billion due to lower commodity prices and increased planned turnaround activity. Total revenue was C$11.8 billion, down from C$17.3 billion. The company renewed its share repurchase program, allowing the purchase of up to 5% of outstanding shares over the next 12 months. Despite the decline in earnings, IMO shares are trading higher by 5.04% at $54.15.
July 28, 2023 | 5:12 pm
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NEUTRAL IMPACT
Imperial Oil's Q2 2023 earnings have significantly declined, but the company's shares are trading higher. The company has also renewed its share repurchase program.
Despite the sharp decline in earnings, Imperial Oil's shares are trading higher, which could be due to the renewal of its share repurchase program. This program could create a positive sentiment among investors as it indicates the company's confidence in its own stock. However, the significant decline in earnings could negatively impact the stock in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100