Imperial Oil has joined the ranks of Canadian oil and gas producers that are sharing their wealth with investors.
The Calgary-based integrated oil sands producer said on Tuesday its board of directors is raising the company's quarter dividend 26 per cent to 34 cents per share from the current payment of 27 cents. The new dividend takes effect on April 1.
That decision came alongside quarterly results showing Imperial Oil's cash flow in the fourth quarter soared to $1.63 billion from $316 million a year earlier. Meanwhile, the company swung to a net profit of $813 million from a net loss of $1.15 billion in the prior year.
On a per-share basis, Imperial earned $1.18 per share; analysts, on average, were anticipating $1.36 in per-share earnings.
In a release, Imperial said its fourth-quarter production averaged 445,000 of oil-equivalent barrels per day, compared to 460,000 barrels per day a year earlier. The company said production at the Kearl oil sands mine fell in the quarter due to extreme cold. Likewise, weather and unscheduled maintenance held back output at the Syncrude oil sands operations, where Imperial owns a 25 per cent stake.
“This past year demonstrated the strength of Imperial’s integrated business model and the value we have created through structural cost reductions, relentless focus on reliable operations and capital-efficient growth in our core businesses,” said Imperial President and Chief Executive Officer Brad Corson in the release.
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