What's In The Offing For Imperial Oil (IMO) Q4 Earnings?
Zacks Investment Research | Jan 28, 2020 08:06PM ET
Imperial Oil Limited (NYSE:IMO) is set to release fourth-quarter 2019 results on Friday Jan 31, before the opening bell. The current Zacks Consensus Estimate for the to-be-reported quarter is pegged at earnings of 30 cents per share on expected revenues of $6.67 billion. The bottom line has been revised 3.45% upward in the past seven days.
Let’s delve into the factors that might have impacted the company’s performance in the December quarter.
Factors to Impact Q4 Results
Robust operational performance at Imperial Oil’s US key projects is likely to have contributed to its fourth-quarter performance. Net production volumes during the third quarter averaged 360,000 barrels of oil equivalent per day (Boe/d), up from 353,000 Boe/d in the year-ago period, a trend most likely continued in the fourth quarter on the back of strong execution of ramped-up activities in Kearl, Cold Lake and Syncrude.
However, pipeline construction in Canada failed to keep pace with the rising domestic oil production. This, in turn, forced producers like Imperial Oil to sell their products at a discounted rate. This downside might have hampered the top line.
For 2019, the company is likely to have incurred total capital expenditure in the C$1.8-C$1.9 billion range, higher than the year-ago quarter’s C$1.42 billion.
While significant output growth is expected to have boosted Imperial Oil’s fourth-quarter earnings, weak oil realizations in Canada and higher year-over-year spending might have affected the company’s overall results.
What Does Our Model Say?
The proven Zacks model does not conclusively predict an earnings beat for Imperial Oil this time around. The combination of a positive Original post
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