Production Up, Profit Down: Imperial Oil Navigates Seasonal Trends In Q1
Portfolio Pulse from Lekha Gupta
Imperial Oil Limited (NYSE:IMO) reported a mixed first-quarter FY24 with an EPS of C$2.23, up from C$2.13 a year ago, but net income fell to C$1.20 billion from C$1.25 billion. Revenue slightly increased to C$12.3 billion. Upstream production and downstream throughput saw increases, with Kearl asset's production hitting a record high. Dividends paid amounted to C$278 million, with a declared Q2 dividend of C$0.60 per share. The company is also progressing with its Pathways Alliance carbon capture project. IMO shares dropped by 0.60% to $70.84.
April 26, 2024 | 5:26 pm
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NEUTRAL IMPACT
Imperial Oil reported a mixed Q1 FY24 with slight revenue increase and a dip in net income. Record production at Kearl and a stable dividend payout highlight operational strength despite the share price drop.
The mixed financial results, with an increase in revenue and EPS but a decrease in net income, suggest a neutral short-term impact on IMO's stock price. The record production and commitment to dividends demonstrate operational strength, potentially offsetting the negative sentiment from the slight decrease in net income and share price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100