10-Q
Table of Contents

 

FORM 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

[ü] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2012

OR

[    ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from — to —

Commission file number 0-12014

IMPERIAL OIL LIMITED

(Exact name of registrant as specified in its charter)

 

CANADA

  98-0017682

(State or other jurisdiction

of incorporation or organization)

  (I.R.S. Employer Identification No.)

237 Fourth Avenue S.W.

Calgary, Alberta, Canada

  T2P 3M9
(Address of principal executive offices)   (Postal Code)

Registrant’s telephone number, including area code: 1-800-567-3776

 

 

The registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 91 days.

YES ü   NO     

The registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES ü   NO     

The registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer (see definition of “accelerated filer” and “large accelerated filer” in Rule 12b-2 of the Securities Exchange Act of 1934).

Large accelerated filer ü                                                                  Accelerated filer     

Non-accelerated filer                                                                        Smaller reporting company     

The registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).

YES        NO ü

The number of common shares outstanding, as of March 31, 2012, was 847,599,011.


Table of Contents

IMPERIAL OIL LIMITED

 

 

INDEX

 

         PAGE  

PART I - Financial Information

  

Item 1 -

 

Financial Statements.

  
 

Consolidated Statement of Income -Three Months ended March 31, 2012 and 2011

     3   
 

Consolidated Statement of Comprehensive Income -Three Months ended March 31, 2012 and 2011

     4   
 

Consolidated Balance Sheet - as at March 31, 2012 and December 31, 2011

     5   
 

Consolidated Statement of Cash Flows - Three Months ended March 31, 2012 and 2011

     6   
 

Notes to the Consolidated Financial Statements

     7   

Item 2 -

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

     12   

Item 3 -

 

Quantitative and Qualitative Disclosures about Market Risk.

     14   

Item 4 -

 

Controls and Procedures.

     14   

PART II - Other Information

  

Item 2 -

 

Unregistered Sales of Equity Securities and Use of Proceeds.

     15   

Item 4 -

 

Submission of Matters to a Vote of Security Holders.

     15   

Item 6 -

 

Exhibits.

     16   

SIGNATURES

     16   

 

 

In this report all dollar amounts are expressed in Canadian dollars unless otherwise stated. This report should be read in conjunction with the company’s Annual Report on Form 10-K for the year ended December 31, 2011.

Statements in this report regarding future events or conditions are forward-looking statements. Actual results could differ materially due to the impact of market conditions, changes in law or governmental policy, changes in operating conditions and costs, changes in project schedules, operating performance, demand for oil and gas, commercial negotiations or other technical and economic factors.

 

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

IMPERIAL OIL LIMITED

 

 

CONSOLIDATED STATEMENT OF INCOME

(U.S. GAAP, unaudited)

 

   Three Months
to March 31
 
millions of Canadian dollars    2012      2011  

REVENUES AND OTHER INCOME

     

Operating revenues (a) (b) 

     7,494         6,852   

Investment and other income (note 3)

     39         19   
  

 

 

 

TOTAL REVENUES AND OTHER INCOME

     7,533         6,871   
  

 

 

 

EXPENSES

     

Exploration

     28         37   

Purchases of crude oil and products (c) 

     4,386         3,980   

Production and manufacturing (d)

     977         979   

Selling and general

     284         321   

Federal excise tax (a) 

     316         315   

Depreciation and depletion

     190         188   
  

 

 

 

TOTAL EXPENSES

     6,181         5,820   
  

 

 

 

INCOME BEFORE INCOME TAXES

     1,352         1,051   

INCOME TAXES

     337         270   
  

 

 

 

NET INCOME

     1,015         781   
  

 

 

 

PER SHARE INFORMATION (Canadian dollars)

     

Net income per common share - basic (dollars) (note 8)

     1.20         0.92   

Net income per common share - diluted (dollars) (note 8)

     1.19         0.91   

Dividends per common share (dollars)

     0.12         0.11   

(a) Federal excise tax included in operating revenues

     316         315   

(b) Amounts from related parties included in operating revenues

     707         482   

(c) Amounts to related parties included in purchases of crude oil and products

     533         1,115   

(d) Amounts to related parties included in production and manufacturing expenses

     34         53   

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)

 

   Three Months
to March 31
 
millions of Canadian dollars    2012     2011  

Net income

     1,015        781   

Other comprehensive income, net of income taxes

    

Post-retirement benefit liability adjustment (excluding amortization)

     (117     (108

Amortization of post-retirement benefit liability adjustment included in net periodic benefit costs

     48        33   
  

 

 

 

Total other comprehensive income/(loss)

     (69     (75
  

 

 

 

Comprehensive income

     946        706   
  

 

 

 

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
Mar. 31
    As at
Dec. 31
 
millions of Canadian dollars    2012     2011  

ASSETS

    

Current assets

    

Cash

     1,045        1,202   

Accounts receivable, less estimated doubtful accounts

     2,146        2,290   

Inventories of crude oil and products

     1,155        762   

Materials, supplies and prepaid expenses

     277        239   

Deferred income tax assets

     630        590   
  

 

 

 

Total current assets

     5,253        5,083   

Long-term receivables, investments and other long-term assets

     935        920   

Property, plant and equipment,

     34,404        33,416   

less accumulated depreciation and depletion

     14,343        14,254   
  

 

 

 

Property, plant and equipment, net

     20,061        19,162   

Goodwill

     204        204   

Other intangible assets, net

     58        60   
  

 

 

 

TOTAL ASSETS

     26,511        25,429   
  

 

 

 

LIABILITIES

    

Current liabilities

    

Notes and loans payable

     364        364   

Accounts payable and accrued liabilities (a) (note 7)

     4,397        4,317   

Income taxes payable

     1,327        1,268   
  

 

 

 

Total current liabilities

     6,088        5,949   

Long-term debt (b) (note 6)

     842        843   

Other long-term obligations (note 7)

     3,954        3,876   

Deferred income tax liabilities

     1,507        1,440   
  

 

 

 

TOTAL LIABILITIES

     12,391        12,108   
  

 

 

 

SHAREHOLDERS’ EQUITY

    

Common shares at stated value (c)

     1,548        1,528   

Earnings reinvested

     14,879        14,031   

Accumulated other comprehensive income

     (2,307     (2,238
  

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

     14,120        13,321   
  

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

     26,511        25,429   
  

 

 

 

 

(a) Accounts payable and accrued liabilities included amounts receivable from related parties of $8 million (2011 - amounts payable of $215 million).
(b) Long-term debt included amounts to related parties of $820 million (2011 - $820 million).
(c) Number of common shares authorized and outstanding were 1,100 million and 848 million, respectively (2011 - 1,100 million and 848 million, respectively).

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)

inflow/(outflow)

   Three Months
to March 31
 
millions of Canadian dollars    2012     2011  

OPERATING ACTIVITIES

    

Net income

     1,015        781   

Adjustment for non-cash items:

    

Depreciation and depletion

     190        188   

(Gain)/loss on asset sales (note 3)

     (29     (6

Deferred income taxes and other

     48        (90

Changes in operating assets and liabilities:

    

Accounts receivable

     140        (245

Inventories, materials, supplies and prepaid expenses

     (431     (462

Income taxes payable

     59        17   

Accounts payable and accrued liabilities

     71        731   

All other items - net (a) 

     (16     45   
  

 

 

 

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES

     1,047        959   
  

 

 

 

INVESTING ACTIVITIES

    

Additions to property, plant and equipment

     (1,145     (822

Proceeds from asset sales

     78        14   

Repayment of loan from equity company

     3        2   
  

 

 

 

CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES

     (1,064     (806
  

 

 

 

FINANCING ACTIVITIES

    

Reduction in capitalized lease obligations

     (1     (1

Issuance of common shares under stock option plan

     22        11   

Common shares purchased

     (68     (36

Dividends paid

     (93     (93
  

 

 

 

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES

     (140     (119
  

 

 

 

INCREASE (DECREASE) IN CASH

     (157     34   

CASH AT BEGINNING OF PERIOD

     1,202        267   
  

 

 

 

CASH AT END OF PERIOD

     1,045        301   
  

 

 

 

(a) Included contribution to registered pension plans

     (97     (66

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 THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

 

 

 

1.

Basis of financial statement preparation

These unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles of the United States of America 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 in the company’s 2011 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 three months ended March 31, 2012, 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

 

Three Months to March 31    Upstream     Downstream     Chemical  
millions of dollars    2012     2011     2012     2011     2012     2011  

REVENUES AND OTHER INCOME

            

Operating revenues

     1,395        1,174        5,755        5,347        344        331   

Intersegment sales

     1,094        1,157        794        711        82        89   

Investment and other income

     3        8        33        9        -        -   
  

 

 

   

 

 

   

 

 

 
     2,492        2,339        6,582        6,067        426        420   
  

 

 

   

 

 

   

 

 

 

EXPENSES

            

Exploration

     28        37        -        -        -        -   

Purchases of crude oil and products

     1,021        861        5,021        4,769        314        307   

Production and manufacturing

     591        599        341        337        45        43   

Selling and general

     2        1        241        223        17        16   

Federal excise tax

     -        -        316        315        -        -   

Depreciation and depletion

     129        133        56        50        3        3   

Financing costs

     -        -        -        (1     -        -   
  

 

 

   

 

 

   

 

 

 

TOTAL EXPENSES

     1,771        1,631        5,975        5,693        379        369   
  

 

 

   

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     721        708        607        374        47        51   

INCOME TAXES

     179        180        152        98        12        13   
  

 

 

   

 

 

   

 

 

 

NET INCOME

     542        528        455        276        35        38   
  

 

 

   

 

 

   

 

 

 

Export sales to the United States

     463        549        231        251        211        200   

Cash flows from (used in) operating activities

     887        717        187        271        (53     5   

CAPEX (a)

     1,145        818        23        36        1        2   

Total assets as at March 31

     18,022        14,527        6,988        6,955        443        456   
Three Months to March 31    Corporate and Other     Eliminations     Consolidated  
millions of dollars    2012     2011     2012     2011     2012     2011  

REVENUES AND OTHER INCOME

            

Operating revenues

     -        -        -        -        7,494        6,852   

Intersegment sales

     -        -        (1,970     (1,957     -        -   

Investment and other income

     3        2        -        -        39        19   
  

 

 

   

 

 

   

 

 

 
     3        2        (1,970     (1,957     7,533        6,871   
  

 

 

   

 

 

   

 

 

 

EXPENSES

            

Exploration

     -        -        -        -        28        37   

Purchases of crude oil and products

     -        -        (1,970     (1,957     4,386        3,980   

Production and manufacturing

     -        -        -        -        977        979   

Selling and general

     24        81        -        -        284        321   

Federal excise tax

     -        -        -        -        316        315   

Depreciation and depletion

     2        2        -        -        190        188   

Financing costs

     -        1        -        -        -        -   
  

 

 

   

 

 

   

 

 

 

TOTAL EXPENSES

     26        84        (1,970     (1,957     6,181        5,820   
  

 

 

   

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     (23     (82     -        -        1,352        1,051   

INCOME TAXES

     (6     (21     -        -        337        270   
  

 

 

   

 

 

   

 

 

 

NET INCOME

     (17     (61     -        -        1,015        781   
  

 

 

   

 

 

   

 

 

 

Export sales to the United States

     -        -        -        -        905        1,000   

Cash flows from (used in) operating activities

     26        (34     -        -        1,047        959   

CAPEX (a)

     4        3        -        -        1,173        859   

Total assets as at March 31

     1,266        416        (208     (346     26,511        22,008   

 

(a)

Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant, equipment and additions to capital leases.

 

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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:

 

     Three Months
to March 31
 
millions of dollars    2012      2011  

Proceeds from asset sales

     78         14   

Book value of assets sold

     49         8   
  

 

 

 

Gain/(loss) on asset sales, before tax

     29         6   
  

 

 

 

Gain/(loss) on asset sales, after tax

     24         4   
  

 

 

 

 

4.

Employee retirement benefits

The components of net benefit cost were as follows:

 

    

Three Months

to March 31

 
millions of dollars    2012     2011  

Pension benefits:

    

Current service cost

     39        29   

Interest cost

     72        78   

Expected return on plan assets

     (72     (76

Amortization of prior service cost

     5        4   

Recognized actuarial loss

     57        40   
  

 

 

 

Net benefit cost

     101        75   
  

 

 

 

Other post-retirement benefits:

    

Current service cost

     2        1   

Interest cost

     5        6   

Recognized actuarial loss

     2        1   
  

 

 

 

Net benefit cost

     9        8   
  

 

 

 

 

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IMPERIAL OIL LIMITED

 

 

 

5.

Financing costs

 

    

Three Months

to March 31

 
millions of dollars    2012     2011  

Debt related interest

     4        3   

Capitalized interest

     (4     (3
  

 

 

 

Total financing costs

     -        -   
  

 

 

 

 

6.

Long-term debt

 

     As at
Mar. 31
     As at
Dec. 31
 
millions of dollars    2012      2011  

Long-term debt

     820         820   

Capital leases

     22         23   
  

 

 

 

Total long-term debt

     842         843   
  

 

 

 

7.     Other long-term obligations

     
     As at
Mar. 31
     As at
Dec. 31
 
millions of dollars    2012      2011  

Employee retirement benefits (a)

     2,729         2,645   

Asset retirement obligations and other environmental liabilities (b)

     893         914   

Share-based incentive compensation liabilities

     140         125   

Other obligations

     192         192   
  

 

 

 

Total other long-term obligations

     3,954         3,876   
  

 

 

 

 

(a)

Total recorded employee retirement benefits obligations also included $48 million in current liabilities (December 31, 2011 - $48 million).

(b)

Total asset retirement obligations and other environmental liabilities also included $145 million in current liabilities (December 31, 2011 - $145 million).

 

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IMPERIAL OIL LIMITED

 

 

 

8.

Net income per share

 

     Three Months
to March 31
 
      2012     2011  

Net income per common share - basic

    

Net income (millions of dollars)

     1,015        781   

Weighted average number of common shares outstanding (millions of shares)

     847.8        847.8   

Net income per common share (dollars)

     1.20        0.92   

Net income per common share - diluted

    

Net income (millions of dollars)

     1,015        781   

Weighted average number of common shares outstanding (millions of shares)

     847.8        847.8   

Effect of employee share-based awards (millions of shares)

     4.7        6.3   
  

 

 

 

Weighted average number of common shares outstanding, assuming dilution (millions of shares)

     852.5        854.1   

Net income per common share (dollars)

     1.19        0.91   

9.     Other comprehensive income information

            

Changes in accumulated other comprehensive income:

    
millions of dollars    2012     2011  

January 1 balance

    

Post-retirement benefits liability adjustment:

     (2,238     (1,424

Current period change excluding amounts reclassified from other comprehensive income

     (117     (108

Amounts reclassified from other comprehensive income

     48        33   
  

 

 

 

March 31 balance

     (2,307     (1,499
  

 

 

 

Income tax expense/(credit) for components of other comprehensive income:

    
     Three Months
to March 31
 
millions of dollars    2012     2011  

Post-retirement benefits liability adjustments:

    

Post-retirement benefits liability adjustment (excluding amortization)

     (40     (37

Amortization of post-retirement benefit liability adjustment included in net periodic benefit cost

     16        11   
  

 

 

 
     (24     (26
  

 

 

 

 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

OPERATING RESULTS

The company’s net income for the first quarter of 2012 was $1,015 million or $1.19 a share on a diluted basis, compared with $781 million or $0.91 a share for the same period last year.

Earnings in the first quarter were higher than the same quarter in 2011 primarily due to stronger industry refining margins of about $150 million and higher liquids realizations of about $115 million. These factors were partially offset by higher royalty costs of about $55 million and lower Syncrude volumes of about $30 million.

Upstream

Net income in the first quarter was $542 million, $14 million higher than the same period of 2011. Earnings benefited from higher liquids realization of about $115 million. This factor was partially offset by higher royalty costs due to higher realizations of about $55 million and lower Syncrude volumes due to maintenance activities of about $30 million.

Prices for most of the company’s liquids production are based on West Texas Intermediate (WTI) oil markets, a common benchmark for mid-continent North American markets. Compared to the same quarter last year, the average price of WTI crude oil in U.S. dollars in the first quarter of 2012 was higher by about $8.43 a barrel, while Brent crude oil, the benchmark for Atlantic basin oil markets, was higher by about $13.46 a barrel in the first quarter of 2012. This widened the price differential between WTI and Brent crude oils to $15.43 a barrel in U.S. dollars in the first quarter of 2012. The company’s Western Canadian liquids realizations are also impacted by market discounts caused by supply/demand imbalances in the mid-continent North American crude oil market. Discounts for bitumen and synthetic crude oils increased through the first quarter, reflecting high industry refining downtime in mid-continent North America. For the quarter, bitumen realizations averaged $66.24 a barrel, an increase of $10.48 in Canadian dollars compared to the first quarter of 2011.

Gross production of Cold Lake bitumen averaged 157 thousand barrels a day during the first quarter, unchanged from the same period last year.

The company’s share of Syncrude’s gross production in the first quarter was 74 thousand barrels a day, versus 80 thousand barrels in the first quarter of 2011. Higher unplanned maintenance activities were the main contributor to the lower production.

Gross production of conventional crude oil averaged 21 thousand barrels a day in the first quarter, essentially unchanged from the 22 thousand barrels in the first quarter of 2011.

Gross production of natural gas during the first quarter of 2012 was 198 million cubic feet a day, down from 269 million cubic feet in the same period last year. The lower production volume was primarily a result of the impact of divested producing properties and natural reservoir decline.

Downstream

Net income was $455 million in the first quarter, the best quarter on record and $179 million higher than the first quarter of 2011. Earnings increased primarily due to the favourable impact of stronger industry refining margins of about $150 million. Refining margins were higher in the first quarter as the overall cost of crude oil processed at three of the company’s four refineries followed the trend of WTI prices and Western Canadian crude oils. Canadian wholesale prices of refined products are largely determined by wholesale prices in adjacent U.S. regions, where wholesale prices are predominately tied to international product markets. Stronger industry refining margins are the result of the widened differential between product prices and cost of crude oil processed.

 

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First quarter earnings in 2012 included a gain of about $15 million from the sale of assets.

Chemical

Net income was $35 million in the first quarter, compared with $38 million in the same quarter last year with continued strong margins across all product channels.

Corporate and other

Net income effects from Corporate and other were negative $17 million in the first quarter, compared with negative $61 million in the same period of 2011. Favourable effects were primarily due to lower share-based compensation charges.

LIQUIDITY AND CAPITAL RESOURCES

Cash flow generated from operating activities was $1,047 million in the first quarter, an increase of $88 million from the corresponding period in 2011. Higher cash flow was primarily due to higher earnings partially offset by working capital effects, which included inventory built in advance of the company’s extensive second quarter 2012 planned refinery maintenance activities.

Investing activities used net cash of $1,064 million in the first quarter, compared with $806 million in the same period of 2011. Additions to property, plant and equipment were $1,145 million in the first quarter, compared with $822 million during the same quarter 2011. Expenditures during the quarter were primarily directed towards the advancement of Kearl initial development and expansion. Other investments included advancing the Nabiye expansion project at Cold Lake, environmental and efficiency projects at Syncrude, as well as the advancement of the production pilot at Horn River and tight oil acreage acquisitions.

Cash used in financing activities was $140 million in the first quarter, compared with $119 million of cash from financing activities in the first quarter of 2011. Dividends paid in the first quarter of 2012 were $93 million, same as in the corresponding period in 2011. Per-share dividend declared in the first quarter of 2012 totaled $0.12, up from $0.11 in the same period of 2011.

During the first quarter of 2012, the company limited its share repurchases to those to offset the dilutive effects from the exercise of stock options. The company will continue to evaluate its share-purchase program in the context of its overall capital project activities.

The above factors led to a decrease in the company’s balance of cash to $1,045 million at March 31, 2012, from $1,202 million at the end of 2011.

The company has entered into additional long-term pipeline transportation agreements to ship heavy crude oil blend. These agreements, which have a total commitment of about $3 billion, will support the company’s long-term growth in oil sands production. The company expects to fulfill these commitments in the normal course of business.

 

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Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Information about market risks for the three months ended March 31, 2012 does not differ materially from that discussed on page 23 in the company’s annual report on Form 10-K for the year ended December 31, 2011.

 

Item 4. Controls and Procedures.

As indicated in the certifications in Exhibit 31 of this report, the company’s principal executive officer and principal financial officer have evaluated the company’s disclosure controls and procedures as of March 31, 2012. Based on that evaluation, these officers have concluded that the company’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the company in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

There has not been any change in the company’s internal control over financial reporting during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting.

 

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PART II - OTHER INFORMATION

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

During the period January 1, 2012 to March 31, 2012, the company issued 1,307,307 common shares to employees or former employees outside the U.S.A. for $15.50 per share upon the exercise of stock options. These issuances were not registered under the Securities Act in reliance on Regulation S thereunder.

Issuer Purchases of Equity Securities (1)

 

         

        Period

  

(a) Total
number of
shares (or

units)
purchased

  

(b) Average
price paid

per share (or
unit)

  

(c) Total
number of
shares (or

units)
purchased

as part of
publicly
announced
plans or
programs

  

(d) Maximum
number (or
approximate
dollar value) of
shares (or units)
that may yet be
purchased

under the plans

or programs

January 2012

(Jan 1- Jan 31)

 

   30,774    46.294    30,774    41,376,197

February 2012

(Feb 1 – Feb 29)

 

   981,033    47.725    981,033    40,319,302

March 2012

(Mar 1 – Mar 31)

 

   420,027    46.015    420,027    39,820,471

 

  (1)

On June 23, 2011, the company announced by news release that it had received final approval from the Toronto Stock Exchange for a new normal course issuer bid and will continue its share repurchase program. The new program enables the company to repurchase up to a maximum of 42,385,463 common shares, including common shares purchased for the company’s employee savings plan, the company’s employee retirement plan and from Exxon Mobil Corporation during the period June 25, 2011 to June 24, 2012. If not previously terminated, the program will end on June 24, 2012.

The company will continue to evaluate its share-purchase program in the context of its overall capital activities.

 

Item 4. Submission of Matters to a Vote of Security Holders.

At the annual meeting of shareholders on May 2, 2012, all of the management’s nominee directors were elected to hold office until the close of the next annual meeting. The votes for the directors were: K.T. Hoeg 741,783,964 shares for and 1,420,046 shares withheld, B. H. March 726,344,394 shares for and 16,859,616 shares withheld, J.M. Mintz 742,355,684 shares for and 848,326 shares withheld, R.C. Olsen 719,395,503 shares for and 23,808,507 shares withheld, D.S. Sutherland 742,475,949 shares for and 728,061 shares withheld, S.D. Whittaker 741,925,111 shares for and 1,278,899 shares withheld, and V.L. Young 742,418,433 shares for and 785,577 shares withheld.

At the same annual meeting of shareholders, PricewaterhouseCoopers LLP were reappointed as the auditors by a vote of 751,005,207 shares for and 744,027 shares withheld from the reappointment of the auditors.

 

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Item 6. Exhibits.

(31.1) Certification by the principal executive officer of the company pursuant to Rule 13a-14(a).

(31.2) Certification by the principal financial officer of the company pursuant to Rule 13a-14(a).

(32.1) Certification by the chief executive officer and of the company pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350.

(32.2) Certification by the chief financial officer and of the company pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

      IMPERIAL OIL LIMITED
      (Registrant)
      /s/ Paul J. Masschelin
Date: May 2, 2012      

 

      (Signature)
      Paul J. Masschelin
     

Senior Vice-President, Finance and

Administration and Treasurer

      (Principal Accounting Officer)
      /s/ Brent A. Latimer
Date: May 2, 2012      

 

      (Signature)
      Brent A. Latimer
      Assistant Secretary

 

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