Enhanced Investments - Financial Portal

Published: 2022-08-03


	IMPERIAL OIL LIMITED



Consolidated statement of income (U.S. GAAP, unaudited)

								Six Months
					Second Quarter				to June 30
millions of Canadian dollars									2022	2021			2022			2021
Revenues and other income
			Revenues (a)	17,285	8,007			29,942	14,999
			Investment and other income (note 3)		22	40	51	46
Total revenues and other income				17,307	8,047			29,993	15,045

Expenses
			Exploration		1	2	3	4
			Purchases of crude oil and products (b)	11,021	4,867			19,371	8,754
			Production and manufacturing (c)	1,908	1,569			3,567	3,054
			Selling and general (c)		191	200	416	389
			Federal excise tax and fuel charge		553	465		1,032	869
			Depreciation and depletion		451	450	877	944
			Non-service pension and postretirement benefit		5	10	9	21
			Financing (d) (note 5)		11	13	18	27
Total expenses				14,141	7,576			25,293	14,062

Income (loss) before income taxes				3,166		471		4,700	983

Income taxes					757	105		1,118	225

Net income (loss)				2,409		366		3,582	758

Per share information (Canadian dollars)
Net income (loss) per common share - basic (note 9)									3.63	0.51	5.37			1.04
Net income (loss) per common share - diluted (note 9)									3.63	0.50	5.36			1.04
(a)			Amounts from related parties included in revenues.						5,175	1,405	9,134			2,913
(b)			Amounts to related parties included in purchases of crude oil and products.						1,129	666		1,779			1,181
(c) Amounts to related parties included in production and manufacturing,
					116	106	234	222
			and selling and general expenses.
(d) Amounts to related parties included in financing (note 5).					13	10	17	21
The information in the notes to consolidated financial statements is an integral part of these statements.

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	IMPERIAL OIL LIMITED


									Consolidated statement of comprehensive income (U.S. GAAP, unaudited)

								Six Months
					Second Quarter				to June 30
millions of Canadian dollars									2022	2021	2022	2021
Net income (loss)				2,409		366			3,582	758

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		42	66
Total other comprehensive income (loss)					21	33		66	120

Comprehensive income (loss)				2,430		399			3,648	878
The information in the notes to consolidated financial statements is an integral part of these statements.

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	IMPERIAL OIL LIMITED



Consolidated balance sheet (U.S. GAAP, unaudited)

				As at		As at
				June 30 Dec 31
millions of Canadian dollars				2022		2021
Assets
Current assets
			Cash	2,867		2,153
			Accounts receivable - net (a)	6,839		3,869
			Inventories of crude oil and products	1,394		1,102
			Materials, supplies and prepaid expenses	789	689
Total current assets				11,889		7,813
Investments and long-term receivables (b)				754	757
Property, plant and equipment,				57,222		56,762
			less accumulated depreciation and depletion	(26,256)		(25,522)
Property, plant and equipment, net (note 11)				30,966		31,240
Goodwill				166	166
Other assets, including intangibles - net				1,117	806
Total assets				44,892		40,782

Liabilities
Current liabilities
			Notes and loans payable	122	122
			Accounts payable and accrued liabilities (a) (note 7)	7,947		5,184
			Income taxes payable	2,018	248
Total current liabilities				10,087		5,554
Long-term debt (c) (note 6)				5,044		5,054
Other long-term obligations (note 7)				3,453		3,897
Deferred income tax liabilities				4,329		4,542
Total liabilities				22,913		19,047

Shareholders' equity
Common shares at stated value (d) (note 9)				1,177		1,252
Earnings reinvested				21,913		21,660
Accumulated other comprehensive income (loss) (note 10)				(1,111)		(1,177)
Total shareholders' equity				21,979		21,735

Total liabilities and shareholders' equity				44,892		40,782
(a)			Accounts receivable - net included net amounts receivable from related parties of $1,888 million (2021 - $1,031 million).
(b)			Investments and long-term receivables included amounts from related parties of $296 million (2021 - $298 million).
(c)			Long-term debt included amounts to related parties of $4,447 million (2021 - $4,447 million).
(d)			Number of common shares authorized and outstanding were 1,100 million and 637 million, respectively (2021 - 1,100 million and 678 million, respectively).
The information in the notes to consolidated financial statements is an integral part of these statements.
Approved by the directors August 3, 2022 /s/ Bradley W. Corson
							/s/ Daniel E. Lyons
Chairman, president and
							Senior vice-president,
chief executive officer							finance and administration, and controller

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	IMPERIAL OIL LIMITED


Consolidated statement of shareholders' equity (U.S. GAAP, unaudited)

								Six Months
			Second Quarter				to June 30
millions of Canadian dollars			2022	2021			2022	2021
Common shares at stated value (note 9)
At beginning of period			1,237	1,357			1,252	1,357
Share purchases at stated value			(60)	(55)		(75)		(55)
At end of period			1,177	1,302			1,177	1,302

Earnings reinvested
At beginning of period			22,171	22,281	21,660	22,050
Net income (loss) for the period			2,409	366			3,582	758
Share purchases in excess of stated value			(2,440)	(1,116)	(2,874)	(1,116)
Dividends declared			(227)	(195)			(455)	(356)
At end of period			21,913	21,336	21,913	21,336

Accumulated other comprehensive income (loss) (note 10)
At beginning of period			(1,132)	(1,902)	(1,177)	(1,989)
Other comprehensive income (loss)			21	33		66		120
At end of period			(1,111)	(1,869)	(1,111)	(1,869)

Shareholders' equity at end of period			21,979	20,769	21,979	20,769
The information in the notes to consolidated financial statements is an integral part of these statements.

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	IMPERIAL OIL LIMITED



Consolidated statement of cash flows (U.S. GAAP, unaudited)

								Six Months
Inflow (outflow)				Second Quarter				to June 30
millions of Canadian dollars									2022	2021	2022			2021
Operating activities
Net income (loss)				2,409		366		3,582	758
Adjustments for non-cash items:
			Depreciation and depletion		451	450	877	944
			(Gain) loss on asset sales (note 3)		(4)	(24)	(24)	(27)
			Deferred income taxes and other						(149)	76		(480)	136
Changes in operating assets and liabilities:
			Accounts receivable	(1,426)						(775)	(2,970)	(1,244)
			Inventories, materials, supplies and prepaid expenses		(27)	58		(391)			(101)
			Income taxes payable		853	21		1,312	42
			Accounts payable and accrued liabilities		499	655		2,643	1,239
All other items - net (c)					76	25	47	150
Cash flows from (used in) operating activities				2,682		852		4,596	1,897

Investing activities
Additions to property, plant and equipment									(333)	(241)	(637)			(408)
Proceeds from asset sales (note 3) (b)					102	35	126	42
Loans to equity companies - net					1	(1)	2	12
Cash flows from (used in) investing activities									(230)	(207)	(509)			(354)

Financing activities
Short-term debt - net					-	-	-	(36)
Reduction in finance lease obligations (note 6)					(6)	(4)	(11)	(8)
Dividends paid									(228)	(161)	(413)			(323)
Common shares purchased (note 9)				(2,500)	(1,171)			(2,949)	(1,171)
Cash flows from (used in) financing activities				(2,734)	(1,336)			(3,373)	(1,538)

Increase (decrease) in cash									(282)	(691)	714	5
Cash at beginning of period				3,149	1,467			2,153	771
Cash at end of period (a)				2,867		776		2,867	776
(a)			Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are all highly liquid securities with maturity of three months or less when purchased.
(b)			Included $94 million deposit for the potential sale of XTO Energy Canada (note 11).
(c)			Included contributions to registered pension plans.		(46)	(42)	(96)	(70)

Income taxes (paid) refunded.					(52)	27		(275)	28
Interest (paid), net of capitalization.					(10)	(14)	(22)	(27)
The information in the notes to consolidated financial statements is an integral part of these statements.

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	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 Generally Accepted Accounting Principles (GAAP) and follow 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 com
			pany’s 2021 annual
report on Form 10-K. In the opinion of the company, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All 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 six months ended June 30, 2022, are not necessarily indicative of the operations to be expected for the full year. All amounts are in Canadian dollars unless otherwise indicated.

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	IMPERIAL OIL LIMITED


2. Business segments
Second Quarter		Upstream		Downstream	Chemical
millions of Canadian dollars		2022			2021	2022	2021	2022	2021
Revenues and other income
											Revenues (a) (b)	119				2,616	16,752					5,015	414	376
											Intersegment sales	5,827				1,312	2,024	788	149	79
											Investment and other income (note 3)	3	6				9	28	-	1
													5,949				3,934	18,785					5,831	563	456
Expenses
											Exploration	1	2				-	-	-	-
											Purchases of crude oil and products	2,357				2,044	16,261					4,760	401	240
											Production and manufacturing	1,423				1,166	418	357	67	46
											Selling and general	-	-				153	142	22	22
											Federal excise tax and fuel charge	-	-				553	465	-	-
											Depreciation and depletion	395	399				45	39	4	5
											Non-service pension and postretirement benefit
		-	-			-	-	-	-
											Financing (note 5)	1	-				-	-	-	-
Total expenses		4,177			3,611	17,430					5,763	494	313
Income (loss) before income taxes		1,772	323			1,355	68	69	143
Income tax expense (benefit)		426	76			322	8	16	34
Net income (loss)		1,346	247			1,033	60	53	109
Cash flows from (used in) operating activities		2,087	595			641	136	64	111
Capital and exploration expenditures (c)		233	130			69	120	2	2


Second Quarter								Corporate and other	Eliminations		Consolidated
millions of Canadian dollars		2022			2021	2022	2021	2022	2021
Revenues and other income
											Revenues (a) (b)	-	-				-	-	17,285	8,007
											Intersegment sales	-	-	(8,000)					(2,179)	-	-
											Investment and other income (note 3)	10	5				-	-	22	40
													10	5	(8,000)					(2,179)	17,307	8,047
Expenses
											Exploration	-	-				-	-	1	2
											Purchases of crude oil and products	-	-	(7,998)					(2,177)	11,021	4,867
											Production and manufacturing	-	-				-	-	1,908	1,569
											Selling and general	18	38				(2)	(2)	191	200
											Federal excise tax and fuel charge	-	-				-	-	553	465
											Depreciation and depletion	7	7				-	-	451	450
											Non-service pension and postretirement benefit
		5	10			-	-	5	10
											Financing (note 5)	10	13				-	-	11	13
Total expenses		40	68	(8,000)				(2,179)	14,141	7,576
Income (loss) before income taxes		(30)	(63)			-	-	3,166	471
Income tax expense (benefit)		(7)	(13)			-	-	757	105
Net income (loss)		(23)	(50)			-	-	2,409	366
Cash flows from (used in) operating activities		(110)	10			-	-	2,682	852
Capital and exploration expenditures (c)		10	7			-	-	314	259

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	IMPERIAL OIL LIMITED


(a) Included export sales to the United States of $3,871 million (2021 - $1,544 million). (b) Includes approximately 13
			% related to revenue outside the scope of ASC 606 “Revenue from Contracts with Customers” for the
three months ended June 30, 2022. 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 physically settled commodity contracts accounted for as derivatives. Credit quality and type of customer are generally similar between those revenues and receivables within the scope of ASC 606 and those outside it.
(c) 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.

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	IMPERIAL OIL LIMITED



Six Months to June 30		Upstream				Downstream				Chemical
millions of Canadian dollars		2022								2021	2022	2021	2022	2021
Revenues and other income
			Revenues (a) (b)	218								4,758	28,943	9,542		781	699
			Intersegment sales	10,258								2,663	3,857	1,561		253	132
			Investment and other income (note 3)	7			6	30	33	-	1
					10,483								7,427	32,830	11,136			1,034	832
Expenses
			Exploration	3			4	-	-	-	-
			Purchases of crude oil and products	4,247								3,878	28,773	8,780		716	449
			Production and manufacturing	2,672								2,275	774	683	121	96
			Selling and general	-			-	300	275	45	47
			Federal excise tax and fuel charge	-			-						1,032	869	-	-
			Depreciation and depletion	768			844	86	78	9	9
			Non-service pension and postretirement benefit
		-			-	-	-	-	-
			Financing (note 5)	1			1	-	-	-	-
Total expenses		7,691								7,002	30,965	10,685		891	601
Income (loss) before income taxes		2,792			425						1,865	451	143	231
Income tax expense (benefit)		664			99	443	99	34	55
Net income (loss)		2,128			326						1,422	352	109	176
Cash flows from (used in) operating activities		3,534								1,126	1,016	598	131	173
Capital and exploration expenditures (c)		455			215	137	188	3	4
Total assets as at June 30 (note 11)		28,961								31,931	11,649	5,352		505	481


Six Months to June 30				Corporate and other	Eliminations			Consolidated
millions of Canadian dollars		2022								2021	2022	2021	2022	2021
Revenues and other income
			Revenues (a) (b)	-			-	-	-	29,942	14,999
			Intersegment sales	-			-	(14,368)	(4,356)		-	-
			Investment and other income (note 3)	14			6	-	-	51	46
					14			6	(14,368)	(4,356)	29,993	15,045
Expenses
			Exploration	-			-	-	-	3	4
			Purchases of crude oil and products	-			-	(14,365)	(4,353)	19,371	8,754
			Production and manufacturing	-			-	-	-		3,567	3,054
			Selling and general	74			70	(3)	(3)	416	389
			Federal excise tax and fuel charge	-			-	-	-		1,032	869
			Depreciation and depletion	14			13	-	-	877	944
			Non-service pension and postretirement benefit
		9			21	-	-	9	21
			Financing (note 5)	17			26	-	-	18	27
Total expenses		114			130	(14,368)	(4,356)	25,293	14,062
Income (loss) before income taxes		(100)								(124)	-	-		4,700	983
Income tax expense (benefit)		(23)			(28)	-	-		1,118	225
Net income (loss)		(77)			(96)	-	-		3,582	758
Cash flows from (used in) operating activities		(85)			-	-	-		4,596	1,897
Capital and exploration expenditures (c)		15			15	-	-	610	422
Total assets as at June 30 (note 11)		4,016								1,606	(239)	(431)	44,892	38,939

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	IMPERIAL OIL LIMITED


(a) Included export sales to the United States of $6,375 million (2021 - $3,113 million). (b) Includes approximately 11%
			related to revenue outside the scope of ASC 606 “Revenue from Contracts with Customers” for the six
months ended June 30, 2022. 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 physically settled commodity contracts accounted for as derivatives. Credit quality and type of customer are generally similar between those revenues and receivables within the scope of ASC 606 and those outside it.
(c) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions
to finance leases, additional investments and acquisition					s and the company’s share of similar costs for equity companies. CAPEX
excludes the purchase of carbon emission credits.

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	IMPERIAL OIL LIMITED


3. Investment and other income

Investment and other income included gains and losses on asset sales as follows:
									Six Months
					Second Quarter		to June 30
millions of Canadian dollars				2022	2021	2022	2021
Proceeds from asset sales				8	35	32	42
Book value of asset sales				4	11	8	15
Gain (loss) on asset sales, before tax				4	24	24	27
Gain (loss) on asset sales, after tax				3	22	19	24

4. Employee retirement benefits

The components of net benefit cost were as follows:
									Six Months
					Second Quarter		to June 30
millions of Canadian dollars				2022	2021	2022	2021
Pension benefits:
			Service cost	70	81	140	162
			Interest cost	74	68	147	136
			Expected return on plan assets	(103)	(107)	(206)	(214)
			Amortization of prior service cost	4	4	8	8
			Amortization of actuarial loss (gain)	21	36	43	72
			Net benefit cost	66	82	132	164

Other postretirement benefits:
			Service cost	5	7	11	14
			Interest cost	6	5	12	11
			Amortization of actuarial loss (gain)	3	4	5	8
			Net benefit cost	14	16	28	33
5. Financing costs
								Six Months
					Second Quarter		to June 30
millions of Canadian dollars				2022	2021	2022	2021
Debt-related interest				20	20	32	41
Capitalized interest				(10)	(7)	(15)	(15)
Net interest expense				10	13	17	26
Other interest				1	-	1	1
Total financing				11	13	18	27
In June 2022, the company reduced its existing $500 million committed long-term line of credit to $250 million and extended the maturity date to June 30, 2023. The company also extended one of its $250 million committed long-term lines of credit to June 30, 2024. The company has not drawn on any of its outstanding $750 million of available credit facilities.

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	IMPERIAL OIL LIMITED


6. Long-term debt
			As at	As at
				June 30	Dec 31
millions of Canadian dollars			2022			2021
Long-term debt			4,447			4,447
Finance leases			597			607
Total long-term debt			5,044			5,054
7. Other long-term obligations
			As at	As at
				June 30	Dec 31
millions of Canadian dollars			2022			2021
Employee retirement benefits (a)			1,323			1,362
Asset retirement obligations and other environmental liabilities (b)			1,733			1,713
Share-based incentive compensation liabilities			119			79
Operating lease liability (c)			122			147
Other obligations			156			596
Total other long-term obligations			3,453			3,897
(a) Total recorded employee retirement benefits obligations also included $56 million in current liabilities (2021 - $56 million). (b) Total asset retirement obligations and other environmental liabilities also included $102 million in current liabilities (2021 - $102
million).
(c) Total operating lease liability also included $86 million in current liabilities (2021 - $102 million).						In addition to the total operating
lease liability, additional undiscounted commitments for leases not yet commenced totalled $11 million (2021 - $5 million).

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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 June 30, 2022 and December 31, 2021, the fair value of long-term debt ($4,447 million, 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
							June 30	Dec 31
thousands of barrels							2022	2021
Crude							8,680	7,390
Products							(930)	(560)

Realized and unrealized gain or (loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a before-tax basis:

											Six Months
						Second Quarter		to June 30
millions of Canadian dollars						2022					2021	2022	2021
Revenues						(51)			(9)	(14)	(9)
Purchases of crude oil and products						-			(19)	-	(33)
Total						(51)			(28)	(14)	(42)


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IMPERIAL OIL LIMITED

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

At June 30, 2022

millions of Canadian dollars

Fair value

Effect of

Net

counterparty collateral carrying

Level 1

Level 2

Level 3

Total

netting

value

Assets

Derivative assets (a)

(44)

(3)

Liabilities

Derivative liabilities (b)

(44)

(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

millions of Canadian dollars

Fair value

Effect of

Net

counterparty collateral carrying

Level 1

Level 2

Level 3

Total

netting

value

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 June 30, 2022 and December 31, 2021, the company had $16 million and $6 million, respectively, of collateral 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
				June 30	Dec 31
thousands of shares			2022	2021
Authorized			1,100,000	1,100,000
Common shares outstanding			636,676	678,080
The 12-month normal course issuer bid program that was in place during the first quarter of 2022 came into effect June 29, 2021. The program enabled the company to purchase up to a maximum of 35,583,671 common shares (5 percent of the total shares on June 15, 2021), 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 participated to maintain its ownership percentage at approximately 69.6 percent. The program completed on January 31, 2022 as a result of the company purchasing the maximum allowable number of shares under the program.

The current 12-month normal course issuer bid program came into effect June 29, 2022 under which Imperial will continue its existing share purchase program. The program enables 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 includes 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 has advised the company that it intends to participate to maintain its ownership percentage at approximately 69.6 percent. Imperial plans to accelerate its share purchases under the normal course issuer bid program and anticipates repurchasing all remaining allowable shares by the end of October 2022. Purchase plans may be modified at any time without prior notice.

On May 6, 2022, the company commenced a substantial issuer bid pursuant to which it offered to purchase for cancellation up to $2.5 billion 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 billion and 4.9 percent of
						Imperial’s issued and outstanding shares as 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.


The company's common share activities are summarized below:
							Thousands of	Millions of
			shares	dollars
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			(41,404)	(75)
Balance as at June 30, 2022			636,676	1,177

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	IMPERIAL OIL LIMITED


The following table provides the calculation of basic and diluted earnings per common share and the dividends declared by the company on its outstanding common shares:
						Six Months
							Second Quarter	to June 30
							2022	2021		2022	2021
Net income (loss) per common share - basic
Net income (loss) (millions of Canadian dollars)						2,409	366	3,582	758
Weighted average number of common shares outstanding (millions of shares)						663.0	724.1		666.7	729.1
Net income (loss) per common share (dollars)						3.63	0.51		5.37	1.04
Net income (loss) per common share - diluted
Net income (loss) (millions of Canadian dollars)						2,409	366	3,582	758
Weighted average number of common shares outstanding (millions of shares)						663.0	724.1		666.7	729.1
Effect of employee share-based awards (millions of shares)				1.4	1.7	1.4	1.7
Weighted average number of common shares outstanding,
			assuming dilution (millions of shares)			664.4	725.8		668.1	730.8
Net income (loss) per common share (dollars)						3.63	0.50		5.36	1.04
Dividends per common share - declared (dollars)						0.34	0.27		0.68	0.49

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	IMPERIAL OIL LIMITED


10. Other comprehensive income (loss) information

Changes in accumulated other comprehensive income (loss):

millions of Canadian dollars							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			42	66
Balance at June 30						(1,111)	(1,869)

Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax income (expense):

								Six Months
									Second Quarter	to June 30
millions of Canadian dollars								2022	2021		2022	2021
Amortization of postretirement benefits liability adjustment
			included in net benefit cost (a)	(27)	(44)	(55)	(88)
(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):

								Six Months
									Second Quarter	to June 30
millions of Canadian dollars								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	6	11	13	22
Total				6	11	21	39
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 include assets in the Montney and Duvernay areas of central Alberta, for approximately $1.9 billion ($0.9 billion
				Imperial’s share), subject to
working capital and other adjustments. The transaction is expected to close prior to the end of the third quarter of 2022, subject to regulatory approvals.
									Imperial’s net assets held for sale associated with this
transaction include about $0.9 billion of total assets (about $0.8 billion of property, plant and equipment) and about $0.1 billion total liabilities in the Upstream segment. The company estimates that total cash flow from the divestment will be approximately $0.9 billion, and expects to recognize a gain at closing of approximately $0.2 billion. Estimated gain and net cash flow could change due to market factors, working capital adjustments, tax impacts and closing dates.




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