Imperial was the first of Canada’s Big Oil to issue a third quarter report. The shareholders of Imperial, or IMO to markets, are receiving a rather parsimonious dividend ($227-million) which is being raised 29 per cent (from still a relatively low, conservative level). In addition to about $170-million in clash dividends this quarter, Imperial will buy back $1.5-billion ins shares and repay debt owing to Exxon of $1.0-billion. It is evident that Exxon-Mobil wants more return in the form of cash from its oil sands “experiments.” It will be up to Imperial’s Canadian board and management to fight to prolong the life of the oilsands primarily through generous Canadian taxpayer handouts, not Exxon investment.
For nine-months to 30 September 2022, Imperial paid $1.6-billion in royalties mostly to the Alberta government, Imperial also bought back $4.5-billion in shares which would include repurchases of IMO shares owned by Exxon.
Increased dividends to their controlling parent Exxon-Mobil are not observable at the parent level with EXXON keeping its powder very dry. It raised its dividend by only one penny. Its nine-month 2022 report shows $44.5-billion in profit with only $11.2-billion or 25 per cent returned in dividends to shareholders. Imperial also made a provision of $1.6-billion of corporate taxes mostly payable to the federal and Alberta governments.
Exxon has total equity of $193-billion and $100-billion in cash and receivables. Its cash position has grown from $6.8-billion to $30.4-billion over the past year. This increase will allow Exxon -Mobil to buy sizable investments either in fossil fuels or in other energy fields. Exxon repaid $3.9-billion U.S. in short-term debt, recorded an impairment charge of $3.7-billion, and received $886-million from assets sales.
Worldwide, Exxon-Mobil recorded revenue of $318 -billion and corporately has contributed $57.4-billion U.S. to various governments’ coffers or 18 per cent of revenue to taxpayer governments.
Is Exxon reinvesting in its fossil fuels business? It did not in the case of Imperial- what about its American and worldwide businesses? For the nine-months ending 30 September 2022, Exxon racked up $19-billion in depletion, depreciation and impairment charges. Exxon only invested $12.6-billion in property, plant and equipment over the first nine-months. This does not appear to be reinvesting in the business. In all likelihood investment for carbon capture in its U.S> and worldwide businesses will come from the government.