Imperial Oil Said Stranded Assets are Undeveloped And Unproductive

Imperial Oil action moved forward on Tuesday, after the company said Monday night it would write off Canadian assets of up to $ 1.2 billion because it no longer intends to mine them.

In a brief statement, the Calgary-based company said it has completed a review of long-term plans to operate its portfolio of unconventional assets in Alberta and announced that it no longer intends to operate ” a significant portion ”of these.

As a result, Imperial will record a non-cash charge of between $ 900 million and $ 1.2 billion in its results for the current quarter.

On the Toronto Stock Exchange, Imperial Oil was up 94 cents, or 4.2%, to $ 23.42 in the morning, despite lower crude oil prices. By early afternoon, the stock had lost ground but was still up 66 cents, or 2.9%, to $ 23.14.

Imperial said stranded assets are undeveloped and unproductive, and added that its ruling does not affect natural gas assets that are also rich in petroleum liquids.

Imperial Oil announced last week that it was laying off approximately 200 of its 6,000 employees in Canada, as part of a cost reduction initiative driven by low oil prices. She said she would reduce the number of contractors she uses by around 450 compared to the start of the year.

Imperial is 69.6% owned by US giant ExxonMobil, which said in October it would cut its global workforce by about 15%, which represents about 14,000 jobs.

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