IMPERIAL OIL LIMITED

Financial Performance of Imperial Oil Limited

Financial Performance of Imperial Oil Limited

Introduction

Imperial Oil is engaged in the exploration, production, transportation and sale of crude oil and natural gas and the manufacture, transportation and sale of petroleum products. Company is also a manufacturer and marketer of petrochemicals. Company's upstream operations include the exploration for, and production of, conventional crude oil, natural gas, synthetic oil and bitumen. Downstream operations consist of the transportation and refining of crude oil, blending of refined products and the distribution and marketing of those products. Chemicals consist of the manufacturing and marketing of various petrochemicals. At Dec 31 2010, company had 2.55 billion oil equivalent barrels of net proved reserves.

Overview of Key Financials

The financial performance of Imperial Oil Limited shows that the major portion of the company's assets is not comprised of liabilities which are a good indication for the company as the company's short term and the long term debts are decreasing. However, the company's equity seems good or satisfactory but it should be high as compare to the liabilities. In addition to this, the total assets per share and net assets per share reflect that the Imperial Oil Limited assets structure is in good shape which shows that the company can meet its financial obligations that is liabilities is some sort of financial loss occur. In addition to this, past studies states that the financial analysis are to determine whether there are liquidity problems, the study of profitability determines the evolution of the company and return on invested capital, management and analysis of related variables involved in the short term financing, obtaining rotations and time of collection and payment means.

Key Financials

(In CAD as of 06/30/2011)

Income Statement

Net Income

2,724m

EPS from Continuing Operations

3.19

EPS - Net Income - Diluted

3.19

Balance Sheet

Total Assets

22,966m

Total Liabilities

10,602m

Shareholders' Equity

12,364m

Total Assets per Share

27.1

Net Assets per Share

14.59

Cash Flows

Cash from Operations

3,584m

Cash from Investing

-3,804m

Cash from Financing

575m

Capital Expenditures

3,917m

Cash Flow per Share

4.2

Ratio Analysis (See Appendix)

As it is known that the most important factors in the well being of a business, is to see that it operates at a profit and to organize it in order to be able to meet its liabilities at appropriate times. If either of these points is not covered efficiently it could mean that the business might have to be closed down. This is the reason why we choose to calculate profitability and liquidity ratios which are the most important and reliable guides. In addition, ...