Enhanced Investments - Financial Portal

Published: 2022-11-02


							IMPERIAL OIL LIMITED

Consolidated statement of income (U.S. GAAP, unaudited)
		Nine Months
	Third Quarter	to September 30
mil ions of Canadian dol ars	2022		2021	2022		2021
Revenues and other income
Revenues (a)	15,071 10,214	45,013 25,213
Investment and other income (note 3, 11)		153		19		204		65
Total revenues and other income	15,224 10,233	45,217 25,278

Expenses
Exploration					1	2				4	6
Purchases of crude oil and products (b)		9,478		6,298	28,849 15,052
Production and manufacturing (c)		1,872		1,525		5,439		4,579
Sel ing and general (c)		209		180		625		569
Federal excise tax and fuel charge		584		535		1,616		1,404
Depreciation and depletion		555		488		1,432		1,432
Non-service pension and postretirement benefit					4	11		13	32
Financing (d) (note 5)					16	5		34	32
Total expenses	12,719		9,044	38,012 23,106

Income (loss) before income taxes		2,505		1,189		7,205		2,172
Income taxes		474		281		1,592		506
Net income (loss)		2,031		908		5,613		1,666
Per share information (Canadian dol ars)
Net income (loss) per common share - basic (note 9)		3.25		1.30		8.60		2.32
Net income (loss) per common share - diluted (note 9)		3.24		1.29		8.58		2.31
(a) Amounts from related parties included in revenues.		4,454		2,731		13,588		5,644
(b) Amounts to related parties included in purchases of crude oil and products.		1,086		828		2,865		2,009
(c) Amounts to related parties included in production and manufacturing, and sel ing and general expenses.
		120		95		354		317
(d) Amounts to related parties included in financing, (note 5).					28	4		45	25
The information in the notes to consolidated financial statements is an integral part of these statements.
								2


						IMPERIAL OIL LIMITED

Consolidated statement of comprehensive income (U.S. GAAP, unaudited)
		Nine Months
	Third Quarter	to September 30
mil ions of Canadian dol ars	2022		2021	2022		2021
Net income (loss)		2,031		908		5,613		1,666
Other comprehensive income (loss), net of income taxes
Postretirement benefits liability adjustment (excluding amortization)					—	—		24	54
Amortization of postretirement benefits liability adjustment included in net benefit costs
					21	33		63	99
Total other comprehensive income (loss)					21	33		87	153
Comprehensive income (loss)		2,052		941		5,700		1,819
The information in the notes to consolidated financial statements is an integral part of these statements.
							3


					IMPERIAL OIL LIMITED

Consolidated balance sheet (U.S. GAAP, unaudited)
	As at	As at
	Sept 30	Dec 31
mil ions of Canadian dol ars	2022	2021
Assets
Current assets
Cash and cash equivalents			3,576	2,153
Accounts receivable - net (a)			5,179	3,869
Inventories of crude oil and products			1,495	1,102
Materials, supplies and prepaid expenses			755	689
Total current assets			11,005	7,813
Investments and long-term receivables (b)			883	757
Property, plant and equipment,			53,763	56,762
less accumulated depreciation and depletion			(23,750)	(25,522)
Property, plant and equipment, net (note 11)			30,013	31,240
Goodwil			166	166
Other assets, including intangibles - net			919	806
Total assets			42,986	40,782
Liabilities
Current liabilities
Notes and loans payable			122	122
Accounts payable and accrued liabilities (a) (note 7)			6,498	5,184
Income taxes payable			2,314	248
Total current liabilities			8,934	5,554
Long-term debt (c) (note 6)			4,038	5,054
Other long-term obligations (note 7)			3,428	3,897
Deferred income tax liabilities			4,278	4,542
Total liabilities			20,678	19,047
Shareholders’ equity
Common shares at stated value (d) (note 9)			1,129	1,252
Earnings reinvested			22,269	21,660
Accumulated other comprehensive income (loss) (note 10)			(1,090)	(1,177)
Total shareholders’ equity			22,308	21,735

Total liabilities and shareholders’ equity			42,986	40,782
(a) Accounts receivable - net included net amounts receivable from related parties of $1,534 mil ion (2021 - $1,031 mil ion).(b) Investments and long-term receivables included amounts from related parties of $289 mil ion (2021 - $298 mil ion).(c) Long-term debt included amounts to related parties of $3,447 mil ion (2021 - $4,447 mil ion).(d) Number of common shares authorized and outstanding were 1,100 mil ion and 612 mil ion, respectively (2021 - 1,100 mil ion and
678 mil ion, respectively).
The information in the notes to consolidated financial statements is an integral part of these statements.
Approved by the directors November 2, 2022/s/ Bradley W. Corson
				/s/ Daniel E. Lyons
Chairman, president and				Senior vice-president,
chief executive officer				finance and administration, and control er
						4


						IMPERIAL OIL LIMITED

Consolidated statement of shareholders’ equity (U.S. GAAP, unaudited)
		Nine Months
	Third Quarter	to September 30
mil ions of Canadian dol ars	2022		2021	2022		2021
Common shares at stated value (note 9)
At beginning of period		1,177		1,302		1,252		1,357
Share purchases at stated value		(48)		(16)		(123)		(71)
At end of period		1,129		1,286		1,129		1,286
Earnings reinvested
At beginning of period	21,913 21,336	21,660 22,050
Net income (loss) for the period		2,031		908		5,613		1,666
Share purchases in excess of stated value		(1,464)		(297)		(4,338)		(1,413)
Dividends declared		(211)		(188)		(666)		(544)
At end of period	22,269 21,759	22,269 21,759

Accumulated other comprehensive income (loss) (note 10)
At beginning of period		(1,111)		(1,869)		(1,177)		(1,989)
Other comprehensive income (loss)					21	33		87	153
At end of period		(1,090)		(1,836)		(1,090)		(1,836)
Shareholders’ equity at end of period	22,308 21,209	22,308 21,209
The information in the notes to consolidated financial statements is an integral part of these statements.
							5


								IMPERIAL OIL LIMITED

Consolidated statement of cash flows (U.S. GAAP, unaudited)
		Nine Months
Inflow (outflow)	Third Quarter	to September 30
mil ions of Canadian dol ars	2022		2021	2022		2021
Operating activities
Net income (loss)		2,031		908		5,613		1,666
Adjustments for non-cash items:
Depreciation and depletion		555		488		1,432		1,432
(Gain) loss on asset sales (note 3, 11)		(131)		(12)		(155)		(39)
Deferred income taxes and other		122		(120)		(358)		16
Changes in operating assets and liabilities:
Accounts receivable		1,648		(708)		(1,322)		(1,952)
Inventories, materials, supplies and prepaid expenses		(70)		(199)		(461)		(300)
Income taxes payable		296		227		1,608		269
Accounts payable and accrued liabilities		(1,328)		1,123		1,315		2,362
Al other items - net (b)		(34)		240		13		390
Cash flows from (used in) operating activities		3,089		1,947		7,685		3,844

Investing activities
Additions to property, plant and equipment		(397)		(276)		(1,034)		(684)
Proceeds from asset sales (note 3, 11)		760		15		886		57
Additional investments					(6)	—					(6)	—
Loans to equity companies - net					7	2					9	14
Cash flows from (used in) investing activities		364		(259)		(145)		(613)
Financing activities
Short-term debt - net					—	(75)					—	(111)
Long-term debt - reductions							(note 6)		(1,000)		—		(1,000)	—
Reduction in finance lease obligations (note 6)					(5)	(6)		(16)		(14)
Dividends paid		(227)		(195)		(640)		(518)
Common shares purchased (note 9)		(1,512)		(313)		(4,461)		(1,484)
Cash flows from (used in) financing activities		(2,744)		(589)		(6,117)		(2,127)

Increase (decrease) in cash		709		1,099		1,423		1,104
Cash at beginning of period		2,867		776		2,153		771
Cash at end of period (a)		3,576		1,875		3,576		1,875
(a) Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are al highly liquid securities with maturity of three months or less when purchased.
(b) Included contributions to registered pension plans.		(41)		(43)		(137)		(113)

Income taxes (paid) refunded.		(64)		32		(339)		60
Interest (paid), net of capitalization.		(19)		(5)		(41)		(32)
The information in the notes to consolidated financial statements is an integral part of these statements.
									6


	IMPERIAL OIL LIMITED

Notes to consolidated financial statements (unaudited)
1. Basis of financial statement preparation
These unaudited consolidated financial statements have been prepared in accordance with United States General y Accepted Accounting Principles (GAAP) and fol ow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual consolidated financial statements filed with the U.S. Securities and Exchange Commission (SEC) in the company’s 2021 annual report on Form 10-K. In the opinion of the company, the information furnished herein reflects al known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. Al such adjustments are of a normal recurring nature.
The company’s exploration and production activities are accounted for under the “successful efforts” method.
The results for the nine months ended September 30, 2022, are not necessarily indicative of the operations to be expected for the ful year.
Al amounts are in Canadian dol ars unless otherwise indicated.
		7


							IMPERIAL OIL LIMITED
2. Business segments
Third Quarter	Upstream	Downstream	Chemical
mil ions of Canadian dol ars	2022			2021	2022		2021	2022	2021
Revenues and other income
Revenues (a) (b)	156			1,015	14,537		8,813	378	386
Intersegment sales (c)	4,665			3,137	1,693		366	142	91
Investment and other income (note 3, 11)	128			—		6	18	—	—
	4,949			4,152	16,236		9,197	520	477
Expenses
Exploration	1			2		—	—	—	—
Purchases of crude oil and products (c)	1,937			1,902	13,686		7,745	354	244
Production and manufacturing	1,381			1,120	419		356	72	49
Sel ing and general	—			—	174		141	17	21
Federal excise tax and fuel charge	—			—	583		535	1	—
Depreciation and depletion	501			439	44		39	4	4
Non-service pension and postretirement benefit	—			—		—	—	—	—
Financing (note 5)	—			—		—	—	—	—
Total expenses	3,820			3,463	14,906		8,816	448	318
Income (loss) before income taxes	1,129			689	1,330		381	72	159
Income tax expense (benefit)	143			165	318		88	18	38
Net income (loss) (c)	986			524	1,012		293	54	121
Cash flows from (used in) operating activities (c)	1,280			2,508	1,532		(733)	109	157
Capital and exploration expenditures (d)	309			151	64		120	2	2

		Corporate and
Third Quarter	other	Eliminations	Consolidated
mil ions of Canadian dol ars	2022			2021	2022		2021	2022	2021
Revenues and other income
Revenues (a) (b)	—			—		—	—	15,071	10,214
Intersegment sales (c)	—			—	(6,500)		(3,594)	—	—
Investment and other income (note 3, 11)	19			1		—	—	153	19
	19			1	(6,500)		(3,594)	15,224	10,233
Expenses
Exploration————	1			2
Purchases of crude oil and products (c)	—			—	(6,499)		(3,593)	9,478	6,298
Production and manufacturing	—			—		—	—	1,872	1,525
Sel ing and general	19			19	(1)		(1)	209	180
Federal excise tax and fuel charge	—			—		—	—	584	535
Depreciation and depletion	6			6		—	—	555	488
Non-service pension and postretirement benefit	4			11		—	—	4	11
Financing (note 5)	16			5		—	—	16	5
Total expenses	45			41	(6,500)		(3,594)	12,719	9,044
Income (loss) before income taxes	(26)			(40)		—	—	2,505	1,189
Income tax expense (benefit)	(5)			(10)		—	—	474	281
Net income (loss) (c)	(21)			(30)		—	—	2,031	908
Cash flows from (used in) operating activities (c)	168			15		—	—	3,089	1,947
Capital and exploration expenditures (d)	17			4		—	—	392	277

	8


	IMPERIAL OIL LIMITED
(a) Included export sales to the United States of $3,176 mil ion (2021 - $1,803 mil ion). (b) Includes approximately 13% and 10% related to revenue outside the scope of ASC 606 “Revenue from Contracts with Customers” for
the three months ended September 30, 2022 and September 30, 2021, respectively. Trade receivables in Accounts receivable – net reported on the Balance Sheet include both receivables within the scope of ASC 606 and those outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physical y settled commodity contracts accounted for as derivatives. Credit quality and type of customer are general y similar between those revenues and receivables within the scope of ASC 606 and those outside it.
(c) In the third quarter of 2021, the Downstream segment acquired a portion of Upstream crude inventory for $444 mil ion. There was no
earnings impact and the effects of this transaction have been eliminated for consolidation purposes.
(d) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to
finance leases, additional investments and acquisitions and the company’s share of similar costs for equity companies. CAPEX excludes the purchase of carbon emission credits.
		9


								IMPERIAL OIL LIMITED
Nine Months to September 30	Upstream	Downstream	Chemical
mil ions of Canadian dol ars	2022			2021	2022			2021	2022			2021
Revenues and other income
Revenues (a) (b)		374			5,773	43,480 18,355		1,159			1,085
Intersegment sales (c)	14,923			5,800		5,550			1,927		395			223
Investment and other income (note 3, 11)		135			6		36			51		—			1
	15,432 11,579	49,066 20,333		1,554			1,309
Expenses
Exploration		4			6						—	—		—			—
Purchases of crude oil and products (c)		6,184			5,780	42,459 16,525		1,070			693
Production and manufacturing		4,053			3,395		1,193			1,039		193			145
Sel ing and general		—			—		474			416		62			68
Federal excise tax and fuel charge		—			—		1,615			1,404		1			—
Depreciation and depletion		1,269			1,283		130			117		13			13
Non-service pension and postretirement benefit		—			—						—	—		—			—
Financing (note 5)		1			1						—	—		—			—
Total expenses	11,511 10,465	45,871 19,501		1,339			919
Income (loss) before income taxes		3,921			1,114		3,195			832		215			390
Income tax expense (benefit)		807			264		761			187		52			93
Net income (loss) (c)		3,114			850		2,434			645		163			297
Cash flows from (used in) operating activities (c)		4,814			3,634		2,548			(135)	240			330
Capital and exploration expenditures (d)		764			366		201			308		5			6
Total assets as at September 30 (c) (note 11)	28,099 29,540		9,972			8,239		482			488

Nine Months to September 30	Corporate and other	Eliminations	Consolidated
mil ions of Canadian dol ars	2022			2021	2022			2021	2022			2021
Revenues and other income
Revenues (a) (b)		—			—						—	—	45,013 25,213
Intersegment sales (c)		—			—	(20,868) (7,950)	—			—
Investment and other income (note 3, 11)		33			7						—	—		204			65
		33			7	(20,868) (7,950) 45,217 25,278
Expenses
Exploration		—			—						—	—		4			6
Purchases of crude oil and products (c)		—			—	(20,864) (7,946) 28,849 15,052
Production and manufacturing		—			—						—	—		5,439			4,579
Sel ing and general		93			89						(4)	(4)	625			569
Federal excise tax and fuel charge		—			—						—	—		1,616			1,404
Depreciation and depletion		20			19						—	—		1,432			1,432
Non-service pension and postretirement benefit		13			32						—	—		13			32
Financing (note 5)		33			31						—	—		34			32
Total expenses		159			171	(20,868) (7,950) 38,012 23,106
Income (loss) before income taxes		(126)			(164)			—	—		7,205			2,172
Income tax expense (benefit)		(28)			(38)			—	—		1,592			506
Net income (loss) (c)		(98)			(126)			—	—		5,613			1,666
Cash flows from (used in) operating activities (c)		83			15						—	—		7,685			3,844
Capital and exploration expenditures (d)		32			19						—	—		1,002			699
Total assets as at September 30 (c) (note 11)		4,704			2,778		(271)			(170) 42,986 40,875
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	IMPERIAL OIL LIMITED
(a) Included export sales to the United States of $9,551 mil ion (2021 - $4,916 mil ion). (b) Includes approximately 12% and 5% related to revenue outside the scope of ASC 606 “Revenue from Contracts with Customers” for
the nine months ended September 30, 2022 and September 30, 2021, respectively. Trade receivables in Accounts receivable – net reported on the Balance Sheet include both receivables within the scope of ASC 606 and those outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physical y settled commodity contracts accounted for as derivatives. Credit quality and type of customer are general y similar between those revenues and receivables within the scope of ASC 606 and those outside it.
(c) In the third quarter of 2021, the Downstream segment acquired a portion of Upstream crude inventory for $444 mil ion. There was no
earnings impact and the effects of this transaction have been eliminated for consolidation purposes.
(d) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to
finance leases, additional investments and acquisitions and the company’s share of similar costs for equity companies. CAPEX excludes the purchase of carbon emission credits.
		11


								IMPERIAL OIL LIMITED
3. Investment and other income
Investment and other income included gains and losses on asset sales as fol ows:
		Nine Months
	Third Quarter	to September 30
			mil ions of Canadian dol ars	2022			2021	2022			2021
Proceeds from asset sales		854			15	886			57
Book value of asset sales		723			3	731			18
			Gain (loss) on asset sales, before tax (a)		131			12	155			39
			Gain (loss) on asset sales, after tax (a)		222			10	241			34
			(a) The third quarter of 2022 included a gain of $116 mil ion ($208 mil ion, after tax) from the sale of interests in XTO Energy Canada,
			which included the removal of a deferred tax liability.
4. Employee retirement benefits
The components of net benefit cost were as fol ows:
				Nine Months
	Third Quarter	to September 30
			mil ions of Canadian dol ars	2022			2021	2022			2021
Pension benefits:
			Service cost						70	81	210			243
			Interest cost						74	68	221			204
			Expected return on plan assets		(103)			(107)	(309)			(321)
			Amortization of prior service cost						4	4			12	12
			Amortization of actuarial loss (gain)						21	36			64	108
			Net benefit cost						66	82	198			246
Other postretirement benefits:
			Service cost						6	7			17	21
			Interest cost						6	6			18	17
			Amortization of actuarial loss (gain)						2	4			7	12
			Net benefit cost						14	17			42	50
5. Financing costs
		Nine Months
	Third Quarter	to September 30
			mil ions of Canadian dol ars	2022			2021	2022			2021
Debt-related interest						34	9			66	50
Capitalized interest						(18)	(4)			(33)	(19)
Net interest expense						16	5			33	31
Other interest						—	—			1	1
Total financing						16	5			34	32
During the second quarter of 2022, the company reduced its existing $500 mil ion committed long-term line of credit to $250 mil ion and extended the maturity date to June 30, 2023. The company also extended one of its $250 mil ion committed long-term lines of credit to June 30, 2024. The company has not drawn on any of its outstanding $750 mil ion of available credit facilities.
									12


					IMPERIAL OIL LIMITED
6. Long-term debt
	As at	As at
	Sept 30	Dec 31
mil ions of Canadian dol ars	2022	2021
Long-term debt (a)			3,447	4,447
Finance leases			591	607
Total long-term debt			4,038	5,054
(a) During the third quarter of 2022, the company decreased its long-term debt by $1 bil ion by partial y repaying an existing facility with
			an affiliated company of ExxonMobil.

7. Other long-term obligations
	As at	As at
	Sept 30	Dec 31
mil ions of Canadian dol ars	2022	2021
Employee retirement benefits (a)			1,328	1,362
Asset retirement obligations and other environmental liabilities (b)			1,677	1,713
Share-based incentive compensation liabilities			121	79
Operating lease liability (c)			121	147
Other obligations			181	596
Total other long-term obligations			3,428	3,897
(a) Total recorded employee retirement benefits obligations also included $56 mil ion in current liabilities (2021 - $56 mil ion). (b) Total asset retirement obligations and other environmental liabilities also included $101 mil ion in current liabilities
			(2021 - $102 mil ion).
(c) Total operating lease liability also included $92 mil ion in current liabilities (2021 - $102 mil ion). In addition to the total operating lease
			liability, additional undiscounted commitments for leases not yet commenced total ed $49 mil ion (2021 - $5 mil ion).
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							IMPERIAL OIL LIMITED
8. Financial and derivative instruments
Financial instruments The fair value of the company’s financial instruments is determined by reference to various market data and other appropriate valuation techniques. There are no material differences between the fair value of the company’s financial instruments and the recorded carrying value. At September 30, 2022 and December 31, 2021, the fair value of long-term debt ($3,447 mil ion and $4,447 mil ion respectively, excluding finance lease obligations) was primarily a level 2 measurement.
Derivative instruments The company’s size, strong capital structure and the complementary nature of the Upstream, Downstream and Chemical businesses reduce the company’s enterprise-wide risk from changes in commodity prices and currency exchange rates. In addition, the company uses commodity-based contracts, including derivative instruments to manage commodity price risk and to generate returns from trading. Commodity contracts held for trading purposes are presented in the Consolidated statement of income on a net basis in the line “Revenues”. The company does not designate derivative instruments as a hedge for hedge accounting purposes.
Credit risk associated with the company’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The company maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.
The net notional long/(short) position of derivative instruments was:
		As at	As at
		Sept 30	Dec 31
	thousands of barrels	2022	2021
	Crude	2,690 7,390
	Products	(1,210)	(560)
Realized and unrealized gain/(loss) on derivative instruments recognized in the Consolidated statement of income is included in the fol owing lines on a before-tax basis:
		Nine Months
				Third Quarter	to September 30
	mil ions of Canadian dol ars			2022	2021	2022	2021
Revenues					105	(21)	91	(30)
Purchases of crude oil and products					—	—	—	(33)
Total					105	(21)	91	(63)

						14

IMPERIAL OIL LIMITED

The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement is as fol ows:

At September 30, 2022

mil ions of Canadian dol ars

Effect of

Net

Fair value

counterparty

col ateral

carrying

netting

value

Level 1

Level 2

Level 3

Total

Assets

Derivative assets (a)

—

(27)

(38)

Liabilities

Derivative liabilities (b)

—

(27)

—

(a) Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”, “Accounts receivable - net” and “Other

assets, including intangibles - net”.

(b) Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities” and “Other long-term obligations”.

At December 31, 2021

mil ions of Canadian dol ars

Effect of

Net

Fair value

counterparty

col ateral

carrying

netting

value

Level 1

Level 2

Level 3

Total

Assets

Derivative assets (a)

—

(31)

—

Liabilities

Derivative liabilities (b)

—

(31)

(7)

(a) Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”, “Accounts receivable - net” and “Other

assets, including intangibles - net”.

(b) Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities” and “Other long-term obligations”.

At September 30, 2022 and December 31, 2021, the company had $36 mil ion and $6 mil ion, respectively, of col ateral under a master netting arrangement not offset against the derivatives on the Consolidated balance sheet in “Accounts receivable - net”, primarily related to initial margin requirements.


					IMPERIAL OIL LIMITED
9. Common shares
		As of	As of
		Sept 30	Dec 31
	thousands of shares	2022	2021
Authorized					1,100,000	1,100,000
Common shares outstanding					611,516	678,080
The most recent 12-month normal course issuer bid program came into effect June 29, 2022 under which Imperial continued its existing share purchase program. The program enabled the company to purchase up to a maximum of 31,833,809 common shares (5 percent of the total shares on June 15, 2022) which included shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. As in the past, Exxon Mobil Corporation advised the company that it intended to participate to maintain its ownership percentage at approximately 69.6 percent. Imperial accelerated share purchases under the normal course issuer bid program during the third quarter and, subsequent to the end of the third quarter, the program completed on October 21, 2022 as a result of the company purchasing the maximum al owable number of shares under the program.
On May 6, 2022, the company commenced a substantial issuer bid pursuant to which it offered to purchase for cancel ation up to $2.5 bil ion of its common shares through a modified Dutch auction and proportionate tender offer. The substantial issuer bid was completed on June 15, 2022, with the company taking up and paying for 32,467,532 common shares at a price of $77.00 per share, for an aggregate purchase of $2.5 bil ion and 4.9 percent of Imperial’s issued and outstanding shares at the close of business on May 2, 2022. This included 22,597,379 shares purchased from Exxon Mobil Corporation by way of a proportionate tender to maintain its ownership percentage at approximately 69.6 percent.
The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of earnings reinvested.
On October 28, 2022 the company announced its intention to launch a substantial issuer bid pursuant to which the company wil offer to purchase for cancel ation up to $1.5 bil ion of its common shares. The substantial issuer bid wil be made through a modified Dutch auction, with a tender price range to be determined by the company at the time of commencement of the offer. Shares may also be tendered by way of a proportionate tender, which wil result in a shareholder maintaining their proportionate share ownership. ExxonMobil has advised Imperial that it intends to make a proportionate tender in connection with the offer in order to maintain its proportionate share ownership at approximately 69.6 percent fol owing completion of the offer. Nothing in this report shal constitute an offer to purchase or a solicitation of an offer to sel any shares.
The company’s common share activities are summarized below:
				Thousands of	Mil ions of
		shares	dol ars
	Balance as at December 31, 2020	734,077	1,357
Issued under employee share-based awards		7	—
Purchases at stated value		(56,004)	(105)
	Balance as at December 31, 2021	678,080	1,252
Issued under employee share-based awards		—	—
Purchases at stated value					(66,564)	(123)
	Balance as at September 30, 2022				611,516	1,129

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					IMPERIAL OIL LIMITED
The fol owing table provides the calculation of basic and diluted earnings per common share and the dividends declared by the company on its outstanding common shares:
		Nine Months
	Third Quarter	to September 30
	2022		2021	2022		2021
Net income (loss) per common share – basic
Net income (loss) (mil ions of Canadian dol ars)	2,031		908	5,613		1,666
Weighted average number of common shares outstanding (mil ions of shares)	625.3		700.0	652.9		719.4
Net income (loss) per common share (dol ars)	3.25		1.30	8.60		2.32
Net income (loss) per common share – diluted
Net income (loss) (mil ions of Canadian dol ars)	2,031		908	5,613		1,666
Weighted average number of common shares outstanding (mil ions of shares)	625.3		700.0	652.9		719.4
Effect of employee share-based awards (mil ions of shares)	1.6		1.9	1.5		1.7
Weighted average number of common shares outstanding, assuming dilution (mil ions of shares)
	626.9		701.9	654.4		721.1
Net income (loss) per common share (dol ars)	3.24		1.29	8.58		2.31
Dividends per common share – declared (dol ars)	0.34		0.27	1.02		0.76
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							IMPERIAL OIL LIMITED
10. Other comprehensive income (loss) information

Changes in accumulated other comprehensive income (loss):
mil ions of Canadian dol ars	2022	2021
Balance at January 1		(1,177)	(1,989)
Postretirement benefits liability adjustment:
			Current period change excluding amounts reclassified from accumulated other comprehensive income
		24	54
			Amounts reclassified from accumulated other comprehensive income		63	99
Balance at September 30		(1,090)	(1,836)
Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax income (expense):
	Nine Months
				Third Quarter	to September 30
mil ions of Canadian dol ars				2022	2021	2022	2021
Amortization of postretirement benefits liability adjustment included in net benefit cost (a)
					(28)	(44)		(83)	(132)
(a) This accumulated other comprehensive income component is included in the computation of net benefit cost (note 4).
Income tax expense (credit) for components of other comprehensive income (loss):
	Nine Months
				Third Quarter	to September 30
mil ions of Canadian dol ars				2022	2021	2022	2021
Postretirement benefits liability adjustments:
			Postretirement benefits liability adjustment (excluding amortization)			—	—		8	17
			Amortization of postretirement benefits liability adjustment included in net benefit cost
						7	11		20	33
Total						7	11		28	50
11. Divestment activities
Jointly with ExxonMobil Canada, Imperial signed an agreement in the second quarter with Whitecap Resources Inc.
for the sale of its interests in XTO Energy Canada which included assets in the Montney and Duvernay
areas of central Alberta, for total cash consideration of approximately $1.9 bil ion ($0.9 bil ion Imperial's share). The transaction closed on August 31, 2022 and the company recognized a gain of approximately $0.2 bil ion. Imperial’s total assets associated with this transaction include about $0.9 bil ion (about $0.8 bil ion of property, plant and equipment) and about $0.2 bil ion total liabilities in the Upstream segment.
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