Imperial Oil announces fourth quarter and 2008 financial and operating results

Calgary, AB, January 29, 2009

Imperial Oil today announced net income for 2008 of $3,878 million or $4.36 per share compared with $3,188 million or $3.41 per share in 2007.  Fourth quarter earnings were $660 million or $0.76 per share in 2008 compared with $886 million or $0.96 per share in the fourth quarter of 2007.

Fourth quarter earnings were primarily impacted by lower crude oil and natural gas commodity prices.  For the full year 2008, earnings increased primarily due to higher crude oil and natural gas commodity prices with improved upstream realizations partially offset by the negative impacts of lower upstream volumes, higher royalties, higher energy and maintenance costs and lower overall downstream margins.

Total operating revenues were $5,913 million in the fourth quarter of 2008 and $31,240 million for the year versus $6,697 million and $25,069 million in the corresponding periods of 2007.  Capital and exploration expenditures were $433 million in the fourth quarter and $1,363 million for the year compared with $317 million in the fourth quarter and $978 million in 2007.  In 2008, Imperial repurchased about 44.3 million shares for $2,210 million.  The company's balance of cash and marketable securities at the end of 2008 was

$1,974 million versus $1,208 million at the end of 2007.

"Imperial's consistent business model, which combines disciplined investment and operational excellence, has allowed the company to continue to advance its growth projects and provide shareholder value through the company's share buyback and dividend programs," said Bruce March, chairman, president and chief executive officer of Imperial Oil.  "Our long-term approach has created a strong financial position that will continue to serve our shareholders well during times of economic uncertainty."

Click here to read our interim report that includes the news release, highlights and items of interest, management's discussion and analysis, and financial statements. 

Imperial Oil is one of Canada's largest corporations and a leading member of the country's petroleum industry.  It is one of Canada's largest producers of crude oil and natural gas, is the country's largest petroleum refiner, and has a leading market share in petroleum products sold through a coast-to-coast supply network that includes about 1,900 service stations.