CALGARY, June 22, 2017 /CNW/ - Imperial Oil Limited today
announced it has received final acceptance from the Toronto Stock
Exchange for a normal course issuer bid (NCIB) to repurchase up to
three percent of its 846,530,905 outstanding common shares as of
June 13, 2017, or a maximum of
25,395,927 shares during the next 12 months. This maximum will be
reduced by the number of shares purchased from Exxon Mobil
Corporation (ExxonMobil), Imperial's majority shareholder, as
described below.
The new one year program will begin on June 27, 2017, and will end should the company
purchase the maximum allowable number of shares, or on June 26, 2018.
"Our objective is to deliver shareholder value throughout the
business cycle by investing in attractive growth opportunities and
paying a reliable and growing dividend, supplemented by a flexible
share repurchase program," said Rich
Kruger, Imperial chairman, president and CEO. "The company
has repurchased approximately 50 percent of outstanding shares
since 1995 and we've returned about $10
billion to shareholders in the form of dividends and share
repurchases over the last decade."
Imperial periodically has excess cash beyond its day-to-day
operating and capital investment needs. After considering
alternative means of distributing excess cash to shareholders,
Imperial's board of directors concluded it is in the best interest
of the company and its shareholders to have the flexibility to
purchase shares under the NCIB. The NCIB is a flexible way of
rebalancing Imperial's capital structure while distributing a
portion of cash reserves to shareholders who choose to participate
by selling their shares. In addition, the NCIB will be used to
eliminate dilution from shares issued in conjunction with
Imperial's restricted stock unit plan.
ExxonMobil will be permitted to sell its shares to Imperial
outside of, but concurrent with, the NCIB in order to maintain its
proportionate share ownership at approximately 69.6 percent.
ExxonMobil advised Imperial that it intends to participate, as it
has in prior years.
All share purchases will be made through the Toronto Stock
Exchange and through other designated exchanges and published
markets in Canada. Shares
purchased under the NCIB are restored to the status of authorized
but unissued shares.
As of June 13, 2017, Imperial has
846,530,905 issued and outstanding common shares. The average daily
trading volume of Imperial's common shares over the six calendar
months prior to the date of this announcement was 629,785 shares
per day. Imperial's daily trading limit under the new program will
be 157,446 shares, which represents 25 percent of Imperial's daily
trading volume.
The acceptance marks the continuation of Imperial's existing
share repurchase program that will expire on June 26, 2017. Under the existing program, a
maximum number of 1,000,000 shares are available for purchase from
the open market. As of June 22, 2017,
Imperial has purchased the maximum 1,000,000 shares on the open
market and a corresponding 2,287,062 shares from ExxonMobil to
maintain its proportionate share ownership at 69.6 percent,
representing a total cost of about $127
million and an average cost of $38.56 per share.
After more than a century, Imperial continues
to be an industry leader in applying technology and innovation to
responsibly develop Canada's
energy resources. As Canada's
largest petroleum refiner, a major producer of crude oil and
natural gas, a key petrochemical producer and a leading fuels
marketer from coast to coast, our company remains committed to high
standards across all areas of our business.
SOURCE Imperial Oil Limited