##### 



(IMPERIAL OIL LOGO) Exhibit 99.1 Imperial Oil Limited
    
    News Release111 St Clair Avenue WestToronto, OntarioCanada M5W 1K3
 Imperial reports strong operating performance
in second quarter 2004 Toronto, July 22, 2004 Imperial Oil Limited today announced net earnings for
the second quarter of 2004 of $454 million or $1.26 a share. This compared
with record second-quarter earnings of $514 million or $1.38 a share in 2003,
which included non-recurring gains of about $110 million in tax benefits and
$55 million in foreign-exchange gains on U.S.-dollar denominated debt.
Net earnings for the first half of 2004 were $963 million or $2.66 a share
versus $1,052 million or $2.80 a share for the first half of 2003. Imperials six-month earnings reflect the companys strong operating and volume
performance, despite lower production at Cold Lake due to the cyclic nature of
the operation. The company was also able to capture the benefits of favourable
market conditions including higher world oil prices and strong industry margins
in petroleum refining and petrochemical products. However, when compared to
the first six months of 2003, a higher Canadian dollar negatively affected
realizations from resource and product sales by about $130 million. Imperials total revenues were $5,466 million for the second quarter and
$10,533 million for the first six months of 2004, compared with $4,510 million
and $9,988 million for the corresponding periods of 2003. Capital and
exploration expenditures were $305 million in the second quarter and $650
million in the first six months of 2004, versus $389 million and $744 million
in the same periods last year. The companys balance of cash and marketable
securities was $439 million at June 30, 2004, versus $448 million at the end of
2003. Through the first six months of 2004, Imperial repurchased about six million
shares for $363 million. In June, the Toronto Stock Exchange approved
continuation of Imperials share-purchase program, which enables the company to
repurchase up to 17.9 million shares between June 23, 2004 and June 22, 2005. Imperials chairman, president and chief executive officer, Tim Hearn said that
the companys operating performance remained strong through the second quarter.
Excluding non-recurring items, Imperials second-quarter and six-month
earnings were higher this year than in 2003, reflecting favourable market
conditions and solid operating performance, Hearn said. Earnings would have
been even higher, without the effects of the Canadian dollar. Progress was also made on projects to provide future growth, such as the
Mackenzie Gas Project, Hearn said. Overall, Imperial remains well-positioned
to continue to grow shareholder value. Imperial is one of Canadas largest corporations and has been a leading member
of the countrys petroleum industry for more than a century. It is also the
countrys largest refiner




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##### 



(IMPERIAL OIL LOGO) and marketer of petroleum products  sold primarily under the Esso and Mobil
brands  with a coast-to-coast supply network that includes 2,100 gasoline
retail outlets. - 30 - For further information:Investor relations
    
    Media relationsJean Côté
    
    Richard OFarrell(416) 968-4262
    
    (416) 968-4875




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##### 



(IMPERIAL OIL LOGO) Highlights Mackenzie gas project progresses Significant progress has been made on the Mackenzie Gas Project. Additional
geotechnical fieldwork was completed in the second quarter, and regulatory
agencies announced that they are prepared to receive applications on the
project during the summer. In June, a draft agreement for an environmental
review of the project and draft terms of reference for the environmental impact
statement were issued for public comment. In addition, through the end of the
second quarter 1.6 million work hours had been completed on the project without
a lost-time or recordable safety incident. 3-D Seismic to begin in Orphan Basin In the second quarter, a seismic vessel was mobilized to begin acquisition of
3-D seismic data on leases in the Orphan Basin, located off the east coast of
Newfoundland. The seismic program is expected to continue through the third
quarter. Share-purchase program to continue In June, Imperial received approval from the Toronto Stock Exchange for a new
normal course issuer bid to continue its share-purchase program. This enables
the company to repurchase up to 17.9 million shares between June 23, 2004 and
June 22, 2005. During the first half of 2004, the company repurchased about
six million shares for $363 million.




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##### 



IMPERIAL OIL LIMITED FINANCIAL HIGHLIGHTS Six monthsSecond quarter
    
    to June 302004
    
    2003
    
    2004
    
    2003Earnings (millions of dollars)Natural resources
    
    
    321
    
    
    
    351
    
    
    
    687
    
    
    
    690Petroleum products
    
    
    108
    
    
    
    102
    
    
    
    243
    
    
    
    241Chemicals
    
    
    29
    
    
    
    7
    
    
    
    41
    
    
    
    13Corporate and other
    
    
    (4
    )
    
    
    54
    
    
    
    (8
    )
    
    
    108Net earnings
    
    
    454
    
    
    
    514
    
    
    
    963
    
    
    
    1,052Cash flow from operating activities
    
    
    652
    
    
    
    672
    
    
    
    1,042
    
    
    
    1,372Capital and exploration expenditures
    
    
    305
    
    
    
    389
    
    
    
    650
    
    
    
    744Per-share information (dollars)Net earnings
- basic
    
    
    1.26
    
    
    
    1.38
    
    
    
    2.67
    
    
    
    2.80Net earnings
- diluted
    
    
    1.26
    
    
    
    1.38
    
    
    
    2.66
    
    
    
    2.80Dividends
    
    
    0.22
    
    
    
    0.22
    
    
    
    0.44
    
    
    
    0.43Share prices
- close at June 30Toronto Stock Exchange (Canadian dollars)
    
    
    
    
    
    
    
    
    
    
    62.40
    
    
    
    47.10American Stock Exchange (U.S. dollars)
    
    
    
    
    
    
    
    
    
    
    46.82
    
    
    
    34.92
 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS OPERATING RESULTS The companys net earnings for the second quarter were $454 million or $1.26 a
share on a diluted basis, compared with $514 million or $1.38 a share for the
same quarter of 2003. Net earnings for the first six months of 2004 were $963
million or $2.66 a share on a diluted basis, versus $1,052 million or $2.80 a
share for the first half of 2003. Earnings in the second quarter were positively impacted by higher realizations
for crude oil and stronger refining and petrochemical margins partly offset by
lower marketing margins. Operating and volume performance was strong despite
lower production at Cold Lake due to the cyclic nature of the operation.
However, those factors were more than offset by the negative earnings impact
from the absence of tax rate reductions and settlement of tax matters totalling
about $110 million and favourable foreign exchange effects on the companys
U.S.-dollar denominated debt of about $55 million, all reported in the second
quarter of 2003. The higher Canadian dollar continued to have a negative
earnings impact of about $25 million versus the same quarter last year. For the first six months, higher realizations for crude oil, higher volumes of
crude oil and natural gas, and stronger refining and petrochemical margins
contributed positively to earnings, partly offset by lower marketing margins.
However, when compared to the first six months of 2003, more than offsetting
these factors were the combined negative effects of a higher Canadian dollar on
resource and product prices of about $130 million, the absence of favourable
foreign exchange effects on the companys U.S.-dollar denominated debt of about
$110 million, and lower benefits from tax matters of about $80 million.




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##### 



IMPERIAL OIL LIMITED MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued .....) Total revenues were $5,466 million in the second quarter and $10,533 million in
the first half of 2004, versus $4,510 million and $9,988 million in the same
periods last year. Natural resources During the second quarter of 2004, net earnings from natural resources were
$321 million compared with $351 million in the same period last year. Net
earnings for the first six months were $687 million versus $690 million during
the same period last year. For both these periods, the positive earnings
effects of higher realizations for crude oil and higher Syncrude, natural gas
liquids (NGLs) and natural gas volumes in 2004 were partly offset by lower Cold
Lake bitumen production and higher expenses from stock-related compensation
programs. However, those factors were more than offset by lower benefits from
tax matters and the negative effects of a higher Canadian dollar. While U.S.-dollar world oil prices in both the second quarter and first six
months of 2004 were sharply higher than the same periods of 2003, increases in
the companys Canadian dollar realizations for conventional crude oil and Cold
Lake bitumen were dampened by the effects of a higher Canadian dollar. Brent
crude oil prices in U.S. dollars averaged 36 percent higher in the second
quarter and 17 percent higher for the first six months, compared with the same
periods last year. Realizations for the companys conventional crude oil in the
second quarter averaged 23 percent higher, and for the first half of the year
four percent higher than the realizations of the same periods last year. Cold
Lake bitumen realizations in the second quarter averaged about 15 percent
higher, and for the first six months about three percent lower than the
realizations of the same periods in 2003. Realizations for natural gas averaged $6.87 a thousand cubic feet in the second
quarter, compared with $6.80 a thousand cubic feet in the same quarter last
year. For the first six-month period, realizations for natural gas averaged
$6.72 a thousand cubic feet in 2004, down from $7.45 a thousand cubic feet in
the same period of 2003. Total gross production of crude oil and NGLs was 251 thousand barrels a day,
down from 262 thousand barrels a day in the second quarter of 2003. For the
first six months of the year, total gross production of crude oil and NGLs
averaged 256 thousand barrels a day, compared with 252 thousand barrels a day
in the same period of 2003. Gross production of Cold Lake bitumen averaged 118 thousand barrels a day
during the second quarter, down from 137 thousand barrels a day in the same
quarter last year. For the first six-month period, gross production was 119
thousand barrels a day this year, versus 129 thousand barrels a day in the same
period of 2003. Lower production was due to the cyclic nature of production at
Cold Lake. The companys share of Syncrudes gross production was 57 thousand barrels a
day in the second quarter compared with 53 thousand barrels a day during the
same period a year ago. During the first six-month period, the companys share
of gross production from Syncrude averaged 60 thousand barrels a day in 2004,
up from 50 thousand barrels a day in the same period of 2003. In the second quarter and first six months of this year, gross production of
conventional crude oil averaged 44 thousand barrels a day, compared with 47
thousand barrels a day during the corresponding periods in 2003.




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##### 



IMPERIAL OIL LIMITED MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued .....) Gross production of NGLs available for sale was 32 thousand barrels a day in
the second quarter, up from 25 thousand barrels a day in the same quarter last
year. During the first half of 2004, gross production of NGLs available for
sale averaged 33 thousand barrels a day, compared with 26 thousand barrels a
day in the same period of 2003. Gross production of natural gas during the second quarter of 2004 increased to
535 million cubic feet a day from 489 million cubic feet a day in the same
period last year. In the first half of the year, gross production was 558
million cubic feet a day, up from 488 million cubic feet a day in the first six
months of 2003. The increased natural gas and NGLs volumes were mainly due to higher production
from the new facilities at Wizard Lake in Alberta, which were completed in the
third quarter of 2003. In April this year, the company, on behalf of the Mackenzie Gas Project
participants, completed geotechnical fieldwork planned for the past winter
session. During the same month, regulatory agencies responsible for the review
of northern natural gas development issued a news release indicating they will
be ready to receive applications on the Mackenzie Gas Project this summer. In
June this year, the Inuvialuit Game Council, the Mackenzie Valley Environmental
Impact Review Board and the Canadian Environmental Assessment Agency issued a
draft agreement for an environmental impact review of the Mackenzie Gas Project
and the draft terms of reference for the environmental impact statement for the
Mackenzie Gas Project, for public comment. On the East Coast, nine of 13 Nova Scotia exploration licenses expired on June
30, 2004, and $7 million was charged to second quarter earnings. In June this year, the company sold its Mid Alberta Pipeline for a gain of $12
million. Petroleum products Net earnings from petroleum products were $108 million in the second quarter,
up from $102 million in the same quarter of 2003. Earnings increased primarily
because of improved international refining margins, and were partly offset by
lower marketing margins, higher scheduled refinery turnaround impact of about
$30 million and higher expenses from stock-related compensation programs.
Six-month net earnings were $243 million, up from $241 million in the same
period of 2003. Higher earnings were primarily due to improved international
refining margins for petroleum products partly offset by lower marketing
margins. Sales volumes of petroleum products were higher both in the second
quarter and the first six months. The planned maintenance activities at the companys refineries were completed
in the second quarter on schedule and without a safety incident. Chemicals Net earnings from chemical operations were $29 million in the second quarter,
up from $7 million in the same quarter last year because of improved
polyethylene and other chemical product margins and increased sales. Six-month
net earnings were $41 million, compared with $13 million for the same period in
2003. Improved margins on sales of polyethylene and other chemical products
contributed primarily to the increase.




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##### 



IMPERIAL OIL LIMITED MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued .....) Corporate and other Net earnings from corporate and other operations were negative $4 million in
the second quarter compared with positive $54 million in the same period of
2003. Six-month net earnings were negative $8 million versus positive $108
million last year. Lower earnings were due to the absence of the favourable
foreign exchange effects on the companys U.S.-dollar-denominated debt, which
was replaced with Canadian-dollar denominated debt in June and July of 2003. LIQUIDITY AND CAPITAL RESOURCES Cash flow from operating activities was $652 million during the second quarter
of 2004, down slightly from $672 million in the same period last year.
Year-to-date cash flow from operating activities was $1,042 million, versus
$1,372 million during the first half of 2003. The decreased cash inflow was
mainly due to the impact of higher commodity prices on working capital. Capital and exploration expenditures were $305 million in the second quarter,
down from $389 million during the same quarter of 2003, and $650 million in the
first half of 2004, versus $744 million in the same period a year ago. For the
resources segment, capital and exploration expenditures were used to invest in
long-term growth opportunities in the oilsands and Mackenzie gas. The petroleum
products segment spent its capital expenditures mainly on projects to reduce
the sulphur content of diesel fuel and to improve operating efficiency. On June 21, 2004, the company announced that it had received final acceptance
from the Toronto Stock Exchange for a new normal course issuer bid to continue
its existing share-purchase program that expired on June 22, 2004. The new
share-purchase program enables the company to repurchase up to 17.9 million
shares during the period from June 23, 2004, to June 22, 2005. During the first
half of 2004, the company repurchased about six million shares for $363
million. Cash dividends of $160 million were paid in the first six months of 2004,
compared with dividends of $159 million paid in the same period of 2003.
Per-share dividends have been increased since the second quarter of 2003,
resulting in higher dividends paid. This was partly offset by the effects of
the companys share-purchase program. The above factors led to a slight decrease in the companys balance of cash and
marketable securities to $439 million at June 30, 2004, from $448 million at
the end of 2003. On May 6, 2004, the company filed a final short form shelf prospectus in Canada
in connection with the issuance of Medium Term Notes over the 25-month period
that the shelf prospectus remains valid. The unsecured notes will be issued
from time to time at the discretion of the company in an aggregate amount not
to exceed $1 billion. There have been no notes issued under this shelf
prospectus.




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##### 



IMPERIAL OIL LIMITED QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Information about market risks for the six months ended June 30, 2004 does not
differ materially from that discussed on page 27 in the companys annual report
to shareholders for the year ended December 31, 2003 and interim report to
shareholders for the quarter ended March 31, 2004, except for the following
sensitivity:  Earnings
sensitivity (a)millions of dollars after taxEight
cents decrease (increase) in the value of the Canadian dollar
versus the  U.S. dollar            
                                     +
(-)      380
 The sensitivity to changes in the Canadian dollar versus the U.S. dollar
increased from 2003 year-end and the first quarter of 2004 by about $5 million
(after tax) for each one U.S.-cent difference due primarily to higher refining
margins at the end of the second quarter. (a) The amount quoted to illustrate the impact of the sensitivity represents a
change of about 10 percent in the value of the commodity at the end of the
second quarter 2004. The sensitivity calculation shows the impact on annual
earnings that results from a change in one factor, after tax and royalties and
holding all other factors constant. While the sensitivity is applicable under
current conditions, it may not apply proportionately to larger fluctuations. This report may contain forward-looking information. Actual results could
differ materially due to market conditions, changes in law or government
policy, changes in operating conditions and costs, changes in project
schedules, operating performance, demand for oil and gas, commercial
negotiations or other technical and economic factors.




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##### 



IMPERIAL OIL LIMITED CONSOLIDATED STATEMENT OF EARNINGS
(unaudited) Six monthsSecond quarter
    
    to June 30millions of dollars
    
    2004
    
    2003
    
    2004
    
    2003REVENUESOperating revenues
    
    
    5,439
    
    
    
    4,472
    
    
    
    10,495
    
    
    
    9,924Investment and other income (3)
    
    
    27
    
    
    
    38
    
    
    
    38
    
    
    
    64TOTAL REVENUES
    
    
    5,466
    
    
    
    4,510
    
    
    
    10,533
    
    
    
    9,988EXPENSESExploration
    
    
    15
    
    
    
    4
    
    
    
    31
    
    
    
    11Purchases of crude oil and products
    
    
    3,174
    
    
    
    2,464
    
    
    
    6,007
    
    
    
    5,660Operating (2) (4)
    
    
    738
    
    
    
    703
    
    
    
    1,421
    
    
    
    1,442Selling and general (4)
    
    
    304
    
    
    
    292
    
    
    
    597
    
    
    
    613Federal excise tax
    
    
    314
    
    
    
    312
    
    
    
    618
    
    
    
    614Depreciation and depletion
    
    
    217
    
    
    
    177
    
    
    
    432
    
    
    
    357Financing costs (6)
    
    
    9
    
    
    
    (57
    )
    
    
    19
    
    
    
    (114
    )TOTAL EXPENSES
    
    
    4,771
    
    
    
    3,895
    
    
    
    9,125
    
    
    
    8,583EARNINGS BEFORE INCOME TAXES
    
    
    695
    
    
    
    615
    
    
    
    1,408
    
    
    
    1,405INCOME TAXES
    
    
    241
    
    
    
    101
    
    
    
    445
    
    
    
    353NET EARNINGS
    
    
    454
    
    
    
    514
    
    
    
    963
    
    
    
    1,052PER-SHARE INFORMATION - dollarsNet earnings - basic (7)
    
    
    1.26
    
    
    
    1.38
    
    
    
    2.67
    
    
    
    2.80Net earnings - diluted (7)
    
    
    1.26
    
    
    
    1.38
    
    
    
    2.66
    
    
    
    2.80Dividends
    
    
    0.22
    
    
    
    0.22
    
    
    
    0.44
    
    
    
    0.43
 CONSOLIDATED STATEMENT OF RETAINED EARNINGS
(unaudited) Six monthsSecond quarter
    
    to June 30millions of dollars
    
    2004
    
    2003
    
    2004
    
    2003RETAINED EARNINGS AT BEGINNING
OF PERIOD
    
    
    4,214
    
    
    
    3,610
    
    
    
    3,919
    
    
    
    3,277Net earnings for the period
    
    
    454
    
    
    
    514
    
    
    
    963
    
    
    
    1,052Share purchases (7)
    
    
    (198
    )
    
    
    (151
    )
    
    
    (332
    )
    
    
    (277
    )Dividends
    
    
    (78
    )
    
    
    (83
    )
    
    
    (158
    )
    
    
    (162
    )RETAINED EARNINGS AT END OF PERIOD
    
    
    4,392
    
    
    
    3,890
    
    
    
    4,392
    
    
    
    3,890
 Certain figures for the prior year have been reclassified in the financial
statements to conform with the current years presentation.




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##### 



IMPERIAL OIL LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
inflow/(outflow) Six monthsSecond quarter
    
    to June 30millions of dollars
    
    2004
    
    2003
    
    2004

    
    2003OPERATING ACTIVITIESNet earnings
    
    
    454
    
    
    
    514
    
    
    
    963
    
    
    
    1,052Depreciation and depletion
    
    
    217
    
    
    
    177
    
    
    
    432
    
    
    
    357(Gain)/loss on asset sales, after tax
    
    
    (13
    )
    
    
    1
    
    
    
    (14
    )
    
    
    1Future income taxes and other
    
    
    (69
    )
    
    
    (84
    )
    
    
    (158
    )
    
    
    (242
    )Cash flow from earnings
    
    
    589
    
    
    
    608
    
    
    
    1,223
    
    
    
    1,168Accounts receivable
    
    
    (4
    )
    
    
    294
    
    
    
    (183
    )
    
    
    20Inventories and prepaids
    
    
    93
    
    
    
    (146
    )
    
    
    (202
    )
    
    
    (261
    )Income taxes payable
    
    
    104
    
    
    
    (22
    )
    
    
    143
    
    
    
    121Accounts payable and other
    
    
    (130
    )
    
    
    (62
    )
    
    
    61
    
    
    
    324Change in operating assets
and liabilities
    
    
    63
    
    
    
    64
    
    
    
    (181
    )
    
    
    204CASH FROM OPERATING ACTIVITIES
    
    
    652
    
    
    
    672
    
    
    
    1,042
    
    
    
    1,372INVESTING ACTIVITIESAdditions to property, plant and
equipment and intangibles
    
    
    (283
    )
    
    
    (380
    )
    
    
    (602
    )
    
    
    (725
    )Proceeds from asset sales
    
    
    53
    
    
    
    17
    
    
    
    66
    
    
    
    22CASH FROM (USED IN)
INVESTING ACTIVITIES
    
    
    (230
    )
    
    
    (363
    )
    
    
    (536
    )
    
    
    (703
    )FINANCING ACTIVITIESShort-term
debt - net
    
    
    9
    
    
    
    
    
    
    
    9
    
    
    
    Long-term debt issued
    
    
    
    
    
    
    546
    
    
    
    
    
    
    
    546Repayment of long-term debt
    
    
    (8
    )
    
    
    (546
    )
    
    
    (8
    )
    
    
    (546
    )Issuance of common shares under stock option plan (7)
    
    
    1
    
    
    
    
    
    
    
    7
    
    
    
    Common shares purchased (7)
    
    
    (216
    )
    
    
    (171
    )
    
    
    (363
    )
    
    
    (312
    )Dividends paid
    
    
    (80
    )
    
    
    (80
    )
    
    
    (160
    )
    
    
    (159
    )CASH FROM(USED IN)
FINANCING ACTIVITIES
    
    
    (294
    )
    
    
    (251
    )
    
    
    (515
    )
    
    
    (471
    )INCREASE (DECREASE) IN CASH
    
    
    128
    
    
    
    58
    
    
    
    (9
    )
    
    
    198CASH AT BEGINNING OF PERIOD
    
    
    311
    
    
    
    906
    
    
    
    448
    
    
    
    766CASH AT END OF PERIOD
    
    
    439
    
    
    
    964
    
    
    
    439
    
    
    
    964
 Certain figures for the prior year have been reclassified in the financial
statements to conform with the current years presentation.




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##### 



IMPERIAL OIL LIMITED CONSOLIDATED BALANCE SHEET
(unaudited) As at
    
    As atJune 30
    
    Dec. 31millions of dollars
    
    2004
    
    2003ASSETSCurrent assetsCash
    
    
    439
    
    
    
    448Accounts receivable
    
    
    1,498
    
    
    
    1,315Inventories of crude oil and products
    
    
    569
    
    
    
    407Materials, supplies and prepaid expenses
    
    
    145
    
    
    
    105Future income tax assets
    
    
    448
    
    
    
    353Total current assets
    
    
    3,099
    
    
    
    2,628Investments and other long-term assets
    
    
    232
    
    
    
    259Property, plant and equipment (8)
    
    
    9,375
    
    
    
    9,218Goodwill
    
    
    204
    
    
    
    204Other intangible assets
    
    
    51
    
    
    
    52TOTAL ASSETS
    
    
    12,961
    
    
    
    12,361LIABILITIESCurrent liabilitiesShort-term debt
    
    
    81
    
    
    
    72Accounts payable and accrued liabilities
    
    
    2,239
    
    
    
    2,222Income taxes payable
    
    
    738
    
    
    
    595Current portion of long-term debt
    
    
    743
    
    
    
    501Total current liabilities
    
    
    3,801
    
    
    
    3,390Long-term debt (9)
    
    
    625
    
    
    
    859Other long-term obligations
    
    
    1,003
    
    
    
    972Future income tax liabilities
    
    
    1,305
    
    
    
    1,362TOTAL LIABILITIES
    
    
    6,734
    
    
    
    6,583SHAREHOLDERS EQUITY
    
    
    6,227
    
    
    
    5,778TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    
    12,961
    
    
    
    12,361
 Certain figures for the prior year have been reclassified in the financial
statements to conform with the current years presentation. Approved by the directors July 22, 2004 T.J Hearn
    
    P.A. SmithChairman, president and
    
    Controller andchief executive officer
    
    senior vice-president,finance and administration




---



##### 



IMPERIAL OIL LIMITED BUSINESS SEGMENTS(unaudited) Second quarter
    
    Resources
    
    
    
    
    
    Products
    
    Chemicalsmillions of dollars
    
    2004
    
    2003
    
    2004
    
    2003
    
    2004
    
    2003REVENUESOperating revenues (a)
    
    
    855
    
    
    
    792
    
    
    
    4,265
    
    
    
    3,433
    
    
    
    319
    
    
    
    247Intersegment sales (b)
    
    
    692
    
    
    
    573
    
    
    
    407
    
    
    
    327
    
    
    
    73
    
    
    
    62Investment and other income
    
    
    18
    
    
    
    19
    
    
    
    7
    
    
    
    11
    
    
    
    
    
    
    
    TOTAL REVENUES
    
    
    1,565
    
    
    
    1,384
    
    
    
    4,679
    
    
    
    3,771
    
    
    
    392
    
    
    
    309EXPENSESExploration (c)
    
    
    15
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Purchases (b)
    
    
    490
    
    
    
    457
    
    
    
    3,585
    
    
    
    2,735
    
    
    
    271
    
    
    
    227Operating (b)
    
    
    404
    
    
    
    410
    
    
    
    286
    
    
    
    262
    
    
    
    48
    
    
    
    38Selling and general
    
    
    6
    
    
    
    3
    
    
    
    272
    
    
    
    261
    
    
    
    26
    
    
    
    28Federal excise tax
    
    
    
    
    
    
    
    
    
    
    314
    
    
    
    312
    
    
    
    
    
    
    
    Depreciation and depletion
    
    
    156
    
    
    
    122
    
    
    
    58
    
    
    
    49
    
    
    
    3
    
    
    
    6Financing costs
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    TOTAL EXPENSES
    
    
    1,071
    
    
    
    996
    
    
    
    4,516
    
    
    
    3,619
    
    
    
    348
    
    
    
    299EARNINGS BEFORE INCOME TAXES
    
    
    494
    
    
    
    388
    
    
    
    163
    
    
    
    152
    
    
    
    44
    
    
    
    10INCOME TAXES
    
    
    173
    
    
    
    37
    
    
    
    55
    
    
    
    50
    
    
    
    15
    
    
    
    3NET EARNINGS
    
    
    321
    
    
    
    351
    
    
    
    108
    
    
    
    102
    
    
    
    29
    
    
    
    7EXPORT SALES TO THE UNITED STATES
    
    
    335
    
    
    
    305
    
    
    
    221
    
    
    
    158
    
    
    
    185
    
    
    
    147CASH FLOW FROM EARNINGS
    
    
    439
    
    
    
    386
    
    
    
    123
    
    
    
    222
    
    
    
    30
    
    
    
    13CAPEX (c)
    
    
    249
    
    
    
    232
    
    
    
    54
    
    
    
    144
    
    
    
    2
    
    
    
    13
 Second quarter
    
    Corporate
    
    Consolidatedmillions of dollars
    
    2004
    
    2003
    
    2004
    
    2003REVENUESOperating revenues (a)
    
    
    
    
    
    
    
    
    
    
    5,439
    
    
    
    4,472Intersegment sales (b)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Investment and other income
    
    
    2
    
    
    
    8
    
    
    
    27
    
    
    
    38TOTAL REVENUES
    
    
    2
    
    
    
    8
    
    
    
    5,466
    
    
    
    4,510EXPENSESExploration (c)
    
    
    
    
    
    
    
    
    
    
    15
    
    
    
    4Purchases (b)
    
    
    
    
    
    
    
    
    
    
    3,174
    
    
    
    2,464Operating (b)
    
    
    
    
    
    
    
    
    
    
    738
    
    
    
    703Selling and general
    
    
    
    
    
    
    
    
    
    
    304
    
    
    
    292Federal excise tax
    
    
    
    
    
    
    
    
    
    
    314
    
    
    
    312Depreciation and depletion
    
    
    
    
    
    
    
    
    
    
    217
    
    
    
    177Financing costs
    
    
    8
    
    
    
    (57
    )
    
    
    9
    
    
    
    (57
    )TOTAL EXPENSES
    
    
    8
    
    
    
    (57
    )
    
    
    4,771
    
    
    
    3,895EARNINGS BEFORE INCOME TAXES
    
    
    (6
    )
    
    
    65
    
    
    
    695
    
    
    
    615INCOME TAXES
    
    
    (2
    )
    
    
    11
    
    
    
    241
    
    
    
    101NET EARNINGS
    
    
    (4
    )
    
    
    54
    
    
    
    454
    
    
    
    514EXPORT SALES TO THE UNITED STATES
    
    
    
    
    
    
    
    
    
    
    741
    
    
    
    610CASH FLOW FROM EARNINGS
    
    
    (3
    )
    
    
    (13
    )
    
    
    589
    
    
    
    608CAPEX (c)
    
    
    
    
    
    
    
    
    
    
    305
    
    
    
    389
  (a)
    
    Includes crude sales made by Products in order to optimize
refining operations.(b)
    
    Consolidated amounts exclude intersegment transactions, as follows: 2004
    
    2003Purchases
    
    
    1,172
    
    
    
    955Operating expenses
    
    
    
    
    
    
    7Total intersegment sales
    
    
    1,172
    
    
    
    962
  (c)
    
    Capital and exploration expenditures (CAPEX) include exploration expenses, additions
to property, plant, equipment and intangibles and additions to capital leases.




---



##### 



IMPERIAL OIL LIMITED BUSINESS SEGMENTS(unaudited) Six months to June 30
    
    Resources
    
    Products
    
    Chemicalsmillions of dollars
    
    2004
    
    2003
    
    2004
    
    2003
    
    2004
    
    2003REVENUESOperating revenues (a)
    
    
    1,745
    
    
    
    1,796
    
    
    
    8,188
    
    
    
    7,601
    
    
    
    562
    
    
    
    527Intersegment sales (b)
    
    
    1,331
    
    
    
    1,208
    
    
    
    776
    
    
    
    705
    
    
    
    138
    
    
    
    127Investment and other income
    
    
    18
    
    
    
    31
    
    
    
    15
    
    
    
    19
    
    
    
    
    
    
    
    TOTAL REVENUES
    
    
    3,094
    
    
    
    3,035
    
    
    
    8,979
    
    
    
    8,325
    
    
    
    700
    
    
    
    654EXPENSESExploration (c)
    
    
    31
    
    
    
    11
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Purchases (b)
    
    
    968
    
    
    
    1,042
    
    
    
    6,791
    
    
    
    6,165
    
    
    
    493
    
    
    
    486Operating (b)
    
    
    785
    
    
    
    833
    
    
    
    544
    
    
    
    538
    
    
    
    92
    
    
    
    78Selling and general
    
    
    10
    
    
    
    9
    
    
    
    541
    
    
    
    546
    
    
    
    46
    
    
    
    58Federal excise tax
    
    
    
    
    
    
    
    
    
    
    618
    
    
    
    614
    
    
    
    
    
    
    
    Depreciation and depletion
    
    
    309
    
    
    
    241
    
    
    
    117
    
    
    
    103
    
    
    
    6
    
    
    
    13Financing costs
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    TOTAL EXPENSES
    
    
    2,103
    
    
    
    2,137
    
    
    
    8,612
    
    
    
    7,966
    
    
    
    637
    
    
    
    635EARNINGS BEFORE INCOME TAXES
    
    
    991
    
    
    
    898
    
    
    
    367
    
    
    
    359
    
    
    
    63
    
    
    
    19INCOME TAXES
    
    
    304
    
    
    
    208
    
    
    
    124
    
    
    
    118
    
    
    
    22
    
    
    
    6NET EARNINGS
    
    
    687
    
    
    
    690
    
    
    
    243
    
    
    
    241
    
    
    
    41
    
    
    
    13EXPORT SALES TO THE UNITED STATES
    
    
    667
    
    
    
    657
    
    
    
    475
    
    
    
    406
    
    
    
    323
    
    
    
    295CASH FLOW FROM EARNINGS
    
    
    933
    
    
    
    811
    
    
    
    254
    
    
    
    355
    
    
    
    43
    
    
    
    17CAPEX (c)
    
    
    524
    
    
    
    459
    
    
    
    118
    
    
    
    264
    
    
    
    8
    
    
    
    21TOTAL ASSETS AS AT June 30 (b)
    
    
    6,666
    
    
    
    6,172
    
    
    
    5,721
    
    
    
    5,455
    
    
    
    495
    
    
    
    390CAPITAL EMPLOYED AS AT June 30
    
    
    4,070
    
    
    
    3,510
    
    
    
    2,937
    
    
    
    2,575
    
    
    
    256
    
    
    
    176
 Six months to June 30
    
    Corporate
    
    Consolidatedmillions of dollars
    
    2004
    
    2003
    
    2004
    
    2003REVENUESOperating revenues (a)
    
    
    
    
    
    
    
    
    
    
    10,495
    
    
    
    9,924Intersegment sales (b)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Investment and other income
    
    
    5
    
    
    
    14
    
    
    
    38
    
    
    
    64TOTAL REVENUES
    
    
    5
    
    
    
    14
    
    
    
    10,533
    
    
    
    9,988EXPENSESExploration (c)
    
    
    
    
    
    
    
    
    
    
    31
    
    
    
    11Purchases (b)
    
    
    
    
    
    
    
    
    
    
    6,007
    
    
    
    5,660Operating (b)
    
    
    
    
    
    
    
    
    
    
    1,421
    
    
    
    1,442Selling and general
    
    
    
    
    
    
    
    
    
    
    597
    
    
    
    613Federal excise tax
    
    
    
    

    
    
    
    
    
    
    618
    
    
    
    614Depreciation and depletion
    
    
    
    
    
    
    
    
    
    
    432
    
    
    
    357Financing costs
    
    
    18
    
    
    
    (115
    )
    
    
    19
    
    
    
    (114
    )TOTAL EXPENSES
    
    
    18
    
    
    
    (115
    )
    
    
    9,125
    
    
    
    8,583EARNINGS BEFORE INCOME TAXES
    
    
    (13
    )
    
    
    129
    
    
    
    1,408
    
    
    
    1,405INCOME TAXES
    
    
    (5
    )
    
    
    21
    
    
    
    445
    
    
    
    353NET EARNINGS
    
    
    (8
    )
    
    
    108
    
    
    
    963
    
    
    
    1,052EXPORT SALES TO THE UNITED STATES
    
    
    
    
    
    
    
    
    
    
    1,465
    
    
    
    1,358CASH FLOW FROM EARNINGS
    
    
    (7
    )
    
    
    (15
    )
    
    
    1,223
    
    
    
    1,168CAPEX (c)
    
    
    
    
    
    
    
    
    
    
    650
    
    
    
    744TOTAL ASSETS AS AT June 30 (b)
    
    
    439
    
    
    
    964
    
    
    
    12,961
    
    
    
    12,664CAPITAL EMPLOYED AS AT June 30
    
    
    439
    
    
    
    1,006
    
    
    
    7,702
    
    
    
    7,267
  (a)
    
    Includes crude sales made by Products in order to optimize refining operations.(b)
    
    Consolidated amounts exclude intersegment transactions, as follows: 2004
    
    2003Purchases
    
    
    2,245
    
    
    
    2,033Operating expenses
    
    
    
    
    
    
    7Total intersegment sales
    
    
    2,245
    
    
    
    2,040Intersegment receivables and payables
    
    
    360
    
    
    
    317
  (c)
    
    Capital and exploration expenditures (CAPEX) include exploration expenses, additions
to property, plant, equipment and intangibles and additions to capital leases.




---



##### 



IMPERIAL OIL LIMITED OPERATING STATISTICS
(unaudited) Six monthsSecond quarter
    
    to June 302004
    
    2003
    
    2004
    
    2003GROSS CRUDE
OIL AND NGL PRODUCTION
(thousands of barrels a day)Conventional
    
    
    44
    
    
    
    47
    
    
    
    44
    
    
    
    47Cold Lake
    
    
    118
    
    
    
    137
    
    
    
    119
    
    
    
    129Syncrude
    
    
    57
    
    
    
    53
    
    
    
    60
    
    
    
    50Total crude oil production
    
    
    219
    
    
    
    237
    
    
    
    223
    
    
    
    226Natural gas liquids (NGLs) available for sale
    
    
    32
    
    
    
    25
    
    
    
    33
    
    
    
    26Total crude oil and NGL production
    
    
    251
    
    
    
    262
    
    
    
    256
    
    
    
    252NET CRUDE
OIL AND NGL PRODUCTION
(thousands of barrels a day)Conventional
    
    
    34
    
    
    
    36
    
    
    
    34
    
    
    
    36Cold Lake
    
    
    105
    
    
    
    122
    
    
    
    108
    
    
    
    114Syncrude
    
    
    57
    
    
    
    52
    
    
    
    60
    
    
    
    49Total crude oil production
    
    
    196
    
    
    
    210
    
    
    
    202
    
    
    
    199Natural gas liquids (NGLs) available for sale
    
    
    26
    
    
    
    19
    
    
    
    27
    
    
    
    20Total crude oil and NGL production
    
    
    222
    
    
    
    229
    
    
    
    229
    
    
    
    219COLD LAKE
BLEND SALES (thousands of barrels a day)
    
    
    157
    
    
    
    180
    
    
    
    160
    
    
    
    171NGL SALES (thousands of barrels a day)
    
    
    32
    
    
    
    29
    
    
    
    40
    
    
    
    38NATURAL
GAS
(millions of cubic feet a day)Production (gross)
    
    
    535
    
    
    
    489
    
    
    
    558
    
    
    
    488Production (net)
    
    
    493
    
    
    
    426
    
    
    
    509
    
    
    
    427Production available for sale (gross)
    
    
    476
    
    
    
    417
    
    
    
    491
    
    
    
    418Production available for sale (net)
    
    
    434
    
    
    
    354
    
    
    
    442
    
    
    
    357Sales
    
    
    511
    
    
    
    444
    
    
    
    511
    
    
    
    442AVERAGE PRICES (dollars)Conventional crude oil sales (a barrel)
    
    
    47.45
    
    
    
    38.53
    
    
    
    45.08
    
    
    
    43.20Par crude oil price at Edmonton (a barrel)
    
    
    51.35
    
    
    
    42.39
    
    
    
    49.04
    
    
    
    47.04Heavy crude oil at Hardisty (Bow River, a barrel)
    
    
    37.66
    
    
    
    31.80
    
    
    
    36.58
    
    
    
    35.96NGL sales (a barrel)
    
    
    28.79
    
    
    
    29.68
    
    
    
    30.64
    
    
    
    35.51Natural gas sales (a thousand cubic feet)
    
    
    6.87
    
    
    
    6.80
    
    
    
    6.72
    
    
    
    7.45PETROLEUM
PRODUCTS SALES
(millions of litres a day)Gasolines
    
    
    33.0
    
    
    
    33.2
    
    
    
    32.5
    
    
    
    32.6Heating, diesel and jet fuels
    
    
    24.6
    
    
    
    23.2
    
    
    
    27.1
    
    
    
    26.8Heavy fuel oils
    
    
    6.2
    
    
    
    5.1
    
    
    
    5.7
    
    
    
    4.8Lube oils and other products
    
    
    7.2
    
    
    
    5.7
    
    
    
    5.9
    
    
    
    5.2Net petroleum products sales
    
    
    71.0
    
    
    
    67.2
    
    
    
    71.2
    
    
    
    69.4Sales under purchase and
sale agreements
    
    
    12.7
    
    
    
    14.8
    
    
    
    13.9
    
    
    
    14.8Total petroleum products sales
    
    
    83.7
    
    
    
    82.0
    
    
    
    85.1
    
    
    
    84.2TOTAL REFINERY THROUGHPUT (millions of litres a day)
    
    
    70.2
    
    
    
    72.9
    
    
    
    73.0
    
    
    
    71.9REFINERY CAPACITY UTILIZATION (percent)
    
    
    88
    
    
    
    91
    
    
    
    92
    
    
    
    90PETROCHEMICAL
SALES (thousands of tonnes a day)
    
    
    3.6
    
    
    
    3.1
    
    
    
    3.3
    
    
    
    3.4




---



##### 



IMPERIAL OIL LIMITED SHARE OWNERSHIP, TRADING AND PERFORMANCE
(unaudited) Six monthsSecond quarter
    
    to June 302004
    
    2003
    
    2004
    
    2003RETURN ON AVERAGE CAPITAL EMPLOYED (a)
(rolling 4 quarters, percent)
    
    
    
    
    
    
    
    
    
    
    21.7
    
    
    
    27.2RETURN ON AVERAGE SHAREHOLDERS EQUITY
(rolling 4 quarters, percent)
    
    
    
    
    
    
    
    
    
    
    26.6
    
    
    
    34.7INTEREST
COVERAGE RATIO - EARNINGS BASIS
(rolling 4 quarters, times covered)
    
    
    
    
    
    
    
    
    
    
    61.6
    
    
    
    72.7SHARE OWNERSHIPOutstanding shares (thousands)Monthly weighted average
    
    
    358,772
    
    
    
    374,194
    
    
    
    360,236
    
    
    
    376,022At June 30
    
    
    
    
    
    
    
    
    
    
    356,802
    
    
    
    372,067Number of shareholdersAt June 30
    
    
    
    
    
    
    
    
    
    
    15,256
    
    
    
    15,738SHARE PRICESToronto Stock Exchange (Canadian dollars)High
    
    
    64.25
    
    
    
    47.40
    
    
    
    64.45
    
    
    
    47.80Low
    
    
    58.40
    
    
    
    43.20
    
    
    
    56.42
    
    
    
    43.20Close at June 30
    
    
    
    
    
    
    
    
    
    
    62.40
    
    
    
    47.10American Stock Exchange (U.S. dollars)High
    
    
    47.13
    
    
    
    34.99
    
    
    
    48.70
    
    
    
    34.99Low
    
    
    43.17
    
    
    
    29.94
    
    
    
    42.34
    
    
    
    28.25Close at June 30
    
    
    
    
    
    
    
    
    
    
    46.82
    
    
    
    34.92
 (a) Return on capital employed is the rolling four quarters net earnings
excluding the after-tax cost of financing divided by the average rolling four
quarters capital employed.




---



##### 



IMPERIAL OIL LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. Accounting principles These consolidated financial statements follow the same accounting policies and
methods of computation as, and should be read in conjunction with, the most recent
annual consolidated financial statements. 2. Reporting of fuel consumed in operations Beginning in 2004, fuel consumed in operations, previously included in purchases of
crude oil and products, is reclassified as operating expenses in the consolidated
statement of earnings. Prior period amounts have been reclassified for comparative
purposes. This reclassification has no impact on total expenses and net earnings or
on the cash flow profile of the company. 3. Divestments Investment and other income includes gains and losses on asset sales as follows: Six monthsSecond quarter
    
    to June 30millions of dollars
    
    2004
    
    2003
    
    2004
    
    2003Proceeds from asset sales
    
    
    53
    
    
    
    17
    
    
    
    66
    
    
    
    22Book value of assets sold (a)
    
    
    35
    
    
    
    18
    
    
    
    47
    
    
    
    23Gain/(loss) on asset sales, before tax (b)
    
    
    18
    
    
    
    (1
    )
    
    
    19
    
    
    
    (1
    )Gain/(loss) on asset sales, after tax (b)
    
    
    13
    
    
    
    (1
    )
    
    
    14
    
    
    
    (1
    )
 (a) Assets sold did not include cash. (b) Second quarter 2004 included a gain of $16 million ($12 million after income
taxes) from the sale of the companys Mid Alberta Pipeline. 4. Employee retirement benefits The components of net benefit cost included in total expenses in the consolidated
statement of earnings are as follows: Six monthsSecond quarter
    
    to June 30millions of dollars
    
    2004
    
    2003
    
    2004
    
    2003Pension benefits:Current service cost
    
    
    19
    
    
    
    18
    
    
    
    39
    
    
    
    36Interest cost
    
    
    59
    
    
    
    55
    
    
    
    118
    
    
    
    110Expected return on plan assets
    
    
    (56
    )
    
    
    (45
    )
    
    
    (112
    )
    
    
    (90
    )Amortization of prior service cost
    
    
    7
    
    
    
    6
    
    
    
    14
    
    
    
    13Recognized actuarial loss
    
    
    17
    
    
    
    17
    
    
    
    34
    
    
    
    34Net benefit cost
    
    
    46
    
    
    
    51
    
    
    
    93
    
    
    
    103Other post-retirement benefits:Current service cost
    
    
    1
    
    
    
    2
    
    
    
    3
    
    
    
    3Interest cost
    
    
    6
    
    
    
    5
    
    
    
    12
    
    
    
    11Recognized actuarial loss
    
    
    1
    
    
    
    
    
    
    
    2
    
    
    
    1Net benefit cost
    
    
    8
    
    
    
    7
    
    
    
    17
    
    
    
    15




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##### 



IMPERIAL OIL LIMITED  5.
    
    Incentive compensation programsThe company accounts for its incentive compensation programs, except for the
incentive stock option plan issued prior to January 1, 2003, by using the
fair-value-based method. Under this method, compensation expense related to the
units of these programs is recorded in the consolidated statement of earnings over
the vesting period. The company accounts for its incentive stock option plan by
using the intrinsic-value-based method and does not recognize compensation
expense on the issuance of stock options because the exercise price is equal to the
market value at the date of grant. If the fair-value-based method of accounting had
been adopted to account for the incentive stock option plan, the impact on net
earnings and earnings per share would have been negligible.The company purchased shares on the market to fully offset the dilutive effects
from the exercise of incentive stock options. The company does not plan to issue
stock options in the future.6.
    
    Financing costs Six monthsSecond quarter
    
    to June 30millions of dollars
    
    2004
    
    2003
    
    2004
    
    2003Debt related interest
    
    
    7
    
    
    
    8
    
    
    
    17
    
    
    
    16Other interest
    
    
    2
    
    
    
    1
    
    
    
    2
    
    
    
    2Total interest expense
    
    
    9
    
    
    
    9
    
    
    
    19
    
    
    
    18Foreign exchange expense (gain) on long-term debt
    
    
    
    
    
    
    (66
    )
    
    
    
    
    
    
    (132
    )Total financing costs
    
    
    9
    
    
    
    (57
    )
    
    
    19
    
    
    
    (114
    )




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##### 



IMPERIAL OIL LIMITED 7. Common shares As at
    
    As atJune 30
    
    Dec. 31thousands of shares
    
    2004
    
    2003Authorized
    
    
    450,000
    
    
    
    450,000Common shares outstanding

    
    
    356,802
    
    
    
    362,653
 In 1995 through 2003, the company purchased shares under nine 12-month normal
course share purchase programs, as well as an auction tender. On June 23, 2004,
another 12-month normal course program was implemented with an allowable purchase
up to 17.9 million shares (five percent of the total on June 21, 2004), less any
shares purchased by the employee savings plan and company pension fund. The
results of these activities are as shown below: millions ofYear
    
    Shares
    
    Dollars1995 - 2002
    
    
    202.7
    
    
    
    5,1692003 - Second quarter
    
    
    3.8
    
    
    
    171Full year
    
    
    16.3
    
    
    
    7992004 - Second quarter
    
    
    3.5
    
    
    
    216Full year
    
    
    6.0
    
    
    
    363Cumulative purchases to date
    
    
    225.0
    
    
    
    6,331
 Exxon Mobil Corporations participation in the above maintained its ownership
interest in Imperial at 69.6 percent. The excess of the purchase cost over the stated value of shares purchased has
been recorded as a distribution of retained earnings. The following table provides the calculation of basic and diluted earnings
per share: Six monthsSecond quarter
    
    to June 302004
    
    2003
    
    2004
    
    2003Net earnings (millions of dollars)
    
    
    454
    
    
    
    514
    
    
    
    963
    
    
    
    1,052(thousands of shares)Average number of common shares
outstanding, weighted monthly
    
    
    358,772
    
    
    
    374,194
    
    
    
    360,236
    
    
    
    376,022Plus: average number of shares issued
on assumed exercise of stock options
    
    
    718
    
    
    
    
    
    
    
    705
    
    
    
    Weighted average number of
diluted common shares
    
    
    359,490
    
    
    
    374,194
    
    
    
    360,941
    
    
    
    376,022Earnings per
share - basic (dollars)
    
    
    1.26
    
    
    
    1.38
    
    
    
    2.67
    
    
    
    2.80Earnings per
share - diluted (dollars)
    
    
    1.26
    
    
    
    1.38
    
    
    
    2.66
    
    
    
    2.80




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##### 



IMPERIAL OIL LIMITED 8. Investment in oil, gas and mineral leases The companys net investment in oil, gas and mineral leases reported in property, plant and
equipment as of June 30, 2004 was $819 million, and as of December 31, 2003 was $935 million. 9. Long-term debt As at
    
    As atInterest
    
    June 30
    
    Dec. 31Issued
    
    Maturity date
    
    rate
    
    2004
    
    20032003
    
    $250 million due May 26, 2005 and$250 million due August 26, 2005 (a)
    
    Variable
    
    
    250
    
    
    
    5002003
    
    January 19, 2006
    
    Variable
    
    
    318
    
    
    
    318Long-term debt
    
    
    
    
    
    
    568
    
    
    
    818Capital leases
    
    
    
    
    
    
    57
    
    
    
    41Total long-term debt
    
    
    
    
    
    
    625
    
    
    
    859
 (a) The portion of variable-rate loan from Exxon Overseas Corporation of $250 million
due on May 26, 2005 has been reclassified to the current portion of long-term debt in
the balance sheet.