Imperial Oil Ltd (NYSE:IMO) Q3 2019 Earnings Conference Call Transcript
Nov 01, 2019 • 11:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the Imperial Third Quarter 2019 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Dave Hughes, Vice President of Investor Relations. Thank you, and please go ahead sir.
Thank you operator. Good morning everyone. Welcome to our third quarter earnings call. Let me start by letting you know who's in the room. We have Rich Kruger Chairman and CEO; Brad Corson President; John Whelan Senior Vice President Upstream; Dan Lyons Senior Vice President Finance and Administration; and Theresa Redburn Senior Vice President Commercial and Corporate Development. Before we get going I'd start by noting that today's comments may contain forward-looking information. Any forward-looking information is not a guarantee of future performance and actual future financial and operating results could differ materially depending on the number of factors and assumptions.
Forward-looking information and the risk factors and assumptions are described in further detail in our third quarter earnings press release that we issued this morning as well as our most recent Form 10-K, and all of these documents are available on SEDAR EDGAR and on our website,So I would ask you to please refer to them. We'll follow the same format today as we have in prior quarters. We'll start with Rich offering some opening remarks then Dan is going to take us through a financial overview and then it will go back to Rich to provide some more color on our operating performance. And once we're through those opening remarks we will go to.
Q&A. So with that I will turn it over to Rich.
Okay. Good morning, My comments upfront will be pretty brief. I'll really focus them on the overall kind of pricing environment we've experienced. And if you look at 2019 despite a lot of activities around the world crude prices were relatively stable throughout the quarter and largely in line with where we are on a year-to-date basis. WTI in the quarter at $56 consistent with year-to-date; Canadian light or MSW $52 also quite consistent with the first nine months; and WCS at $44 very much in line with the year-to-date. Similarly third quarter differentials MSW to WTI and WCS to WTI largely unchanged from the year-to-date averages of about minus $5 a barrel and minus $12 a barrel respectively. Year-on-year in absolute terms WTI and MSW are down considerably from '18 both relatively in the third quarter as well as the first nine months. On average light crude prices year-on-year down roughly $10 to $12 and the differentials have been on average slightly narrower by $1 or $2.
Canadian light crude prices have been generally in line with the kind of a global benchmark of Brent which is down seven dollar to eight dollar, year-on-year -- on a year-to-date average, So all that said the storyline in '19 continues to be heavy crude prices with absolute WCS prices this year on par with 2018 WCS