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Be the first with the news that moves the market- Imperial Oil (TSX:IMO) has today released a statement from the company’s CEO, Chairman and President, Brad Corson
- Imperial Oil is reviewing spending and implementing increased bio-security procedures at production facilities
- The company is already in a cycle of low spending
- Imperial Oil had over C$1.7 billion in cash on hand at the end of 2019
- Imperial Oil (IMO) shares are currently trading for C$11.98, up 7.16 per cent with a market cap of $8.8 billion
Imperial Oil (TSX:IMO) today issued a statement that they are well positioned to weather the challenges currently being felt across the global economy.
The company’s CEO, Chairman and President, Brad Corson, was defiant in his belief that the company was capable of surviving and thriving throughout the COVID-19 outbreak and the shattered global oil price.
However, Imperial Oil has had a very bad month.
Imperial Oil’s share price sat at C$30.31 on March 2nd, but has fallen some 60 per cent in the three weeks since then.
Brad reiterated that Imperial Oil had faced periods of low global crude oil prices before.
“In the current challenging market environment caused by the COVID-19 pandemic and commodity price decreased, the company continues to demonstrate its long-standing commitment to financial strength, capital and operating expense discipline and maximising long-term shareholder value,” he said.
The company has assured investors that Imperial is in a natural period of low capital investment anyway, with capital expenditure this quarter directed towards maintenance.
Nevertheless, Brad has committed to reviewing spending in an effort to identify further efficiency opportunities.
“We will continue to closely monitor and have flexibility in our plans to respond to market conditions, and rigorously examine operating costs and capital investments to maximise long term shareholder value in whatever business environment we operate,” he added.
Imperial Oil is also following the lead of resources companies around the world, and is attempting to secure production by introducing stricter bio-security measures at production sites.
“We remain focused on maintaining safe and reliable operations and on the health and wellbeing of our employees and their families, business partners and local communities during this difficult time,” Brad concluded.
Imperial has a respectable C$1.7 billion in cash on hand, as of 2019’s end, and has low sustaining capital requirements across its business model.
Imperial Oil (IMO) is up 7.16 per cent to $11.98 per share at 11:04 am EST.
