Business segments

3 Months Ended

Mar. 31, 2020

Business segments

3.  Business segments

Three Months to March 31	Upstream			Downstream		Chemical
millions of Canadian dollars	2020		2019	2020	2019	2020		2019
Revenues and other income
Revenues (a)	1,652		2,240	4,796	5,474	216		251
Intersegment sales	722		948	568	448	44		72
Investment and other income (note 4)	-		-	15	10	-		-
	2,374		3,188	5,379	5,932	260		323
Expenses
Exploration	1		33	-	-	-		-
Purchases of crude oil and products (note 13)	1,650		1,586	3,769	4,582	140		193
Production and manufacturing	1,108		1,156	408	381	63		58
Selling and general	-		-	181	179	25		21
Federal excise tax and fuel charge	-		-	451	394	-		-
Depreciation and depletion (note 13)	417		334	46	46	4		4
Non-service pension and postretirement benefit	-		-	-	-	-		-
Financing (note 7)	-		-	-	-	-		-
Total expenses	3,176		3,109	4,855	5,582	232		276
Income (loss) before income taxes	(802	)	79	524	350	28		47
Income tax expense (benefit)	(194	)	21	122	93	7		13
Net income (loss)	(608	)	58	402	257	21		34
Cash flows from (used in) operating activities	464		280	22	732	(3	)	48
Capital and exploration expenditures (b)	231		372	76	129	9		17
Total assets as at March 31 (c) (note 13)	33,367		35,235	4,580	5,556	438		454

Three Months to March 31	Corporate and other				Eliminations				Consolidated
millions of Canadian dollars	2020		2019		2020		2019		2020		2019
Revenues and other income
Revenues (a)	-		-		-		-		6,664		7,965
Intersegment sales	-		-		(1,334	)	(1,468	)	-		-
Investment and other income (note 4)	11		7		-		-		26		17
	11		7		(1,334	)	(1,468	)	6,690		7,982
Expenses
Exploration	-		-		-		-		1		33
Purchases of crude oil and products (note 13)	-		-		(1,333	)	(1,466	)	4,226		4,895
Production and manufacturing	-		-		-		-		1,579		1,595
Selling and general	(39	)	15		(1	)	(2	)	166		213
Federal excise tax and fuel charge	-		-		-		-		451		394
Depreciation and depletion (note 13)	6		6		-		-		473		390
Non-service pension and postretirement benefit	30		36		-		-		30		36
Financing (note 7)	19		28		-		-		19		28
Total expenses	16		85		(1,334	)	(1,468	)	6,945		7,584
Income (loss) before income taxes	(5	)	(78	)	-		-		(255	)	398
Income tax expense (benefit)	(2	)	(22	)	-		-		(67	)	105
Net income (loss)	(3	)	(56	)	-		-		(188	)	293
Cash flows from (used in) operating activities	(43	)	(57	)	(17	)	-		423		1,003
Capital and exploration expenditures (b)	15		11		-		-		331		529
Total assets as at March 31 (c) (note 13)	2,242		1,697		(214	)	(445	)	40,413		42,497

(a) Included export sales to the United States of $1,373 million (2019 - $1,664 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment.

(b) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits.

(c) In 2019, the company removed $570 million from Total assets and corresponding liabilities in the Downstream segment associated with the Government of Ontario’s revocation of its cap and trade legislation.