FORM 10-K IMPERIAL OIL LIMITED

Petroleum Products
Net income from petroleum products was a record $500 million or 1.6 cents a litre in 2004, up from
$407 million or 1.3 cents a litre in 2003 (2002 – $127 million or 0.4 cents a litre). Improved earnings were mainly
due to stronger international refining margins, partly offset by lower fuels marketing margins and the negative
impact of a higher Canadian dollar. Sales volumes of petroleum products were higher, due in part to higher
industry demand.
Revenues were $19.2 billion, up from $16.1 billion in 2003 (2002 – $14.4 billion).
Financial statistics
2004 2003 2002 2001 2000
(millions)
Net income........................................................ $ 500 $ 407 $ 127 $ 353 $ 313
Revenues ......................................................... 19,211 16,058 14,434 14,405 15,120
Sales of petroleum products
2004 2003 2002 2001 2000
(millions of litres a day (a))
Gasolines......................................................... 33.2 33.0 32.9 32.3 32.0
Heating, diesel and jet fuels................................. 27.3 26.2 25.0 26.5 27.5
Heavy fuel oils................................................... 5.9 5.4 4.9 5.4 5.1
Lube oils and other products................................ 7.0 5.8 6.4 5.4 5.0
Net petroleum products sales............................... 73.4 70.4 69.2 69.6 69.6
Sales under purchase and sale agreements............ 14.2 14.6 13.9 11.6 10.7
Total sales of petroleum products.......................... 87.6 85.0 83.1 81.2 80.3
Total domestic sales of petroleum products
(percent)....................................................... 93.0 93.3 91.5 93.4 94.0
Refinery utilization 2004 2003 2002 2001 2000
(millions of litres a day (a))
Total refinery throughput (b)................................. 74.3 71.6 71.2 71.4 71.6
Refinery capacity at December 31......................... 79.9 79.9 79.4 79.1 78.7
Utilization of total refinery capacity (percent)............ 93 90 90 90 91
(a)
(b)
Volumes a day are calculated by dividing total volumes for the year by the number of days in the year.
Crude oil and feedstocks sent directly to atmospheric distillation units.
Margins were stronger in the refining segment of the industry in 2004 compared with those in 2003, as
international wholesale product prices increased more than raw material costs. However, the effects of
higher international margins were reduced partially by a higher Canadian dollar. Retail margins in the fuels
marketing area were lower in 2004, reflecting the impact of highly competitive markets.
Throughput at the refineries has increased with refinery capacity utilization averaging a record 93 percent
during 2004, compared with 90 percent in 2003 (2002 – 90 percent).
The Company’s total sales volumes, including those resulting from reciprocal supply agreements with
other companies, were 87.6 million litres a day, compared with 85 million litres in 2003 (2002 – 83.1 million).
Excluding sales resulting from reciprocal agreements, sales were 73.4 million litres a day, compared with
70.4 million litres in 2003 (2002 – 69.2 million).
Operating costs increased by about two percent in 2004 from the previous year, mainly because of
higher energy, environmental and depreciation costs.
Chemicals
Net income from chemical operations was $100 million in 2004, compared with $37 million in 2003
(2002 – $52 million). Strong industry polyethylene and benzene margins were the main factors contributing
to the improvement.
Financial statistics
2004 2003 2002 2001 2000
(millions)
Net income........................................................ $ 100 $ 37 $ 52 $ 23 $ 59
Revenues.......................................................... 1,509 1,232 1,164 1,175 1,173
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