Imperial Oil Limited recently released its 10-Q report. Imperial Oil explores, produces, transports, refines, blends, and markets crude oil, natural gas, petroleum products, and petrochemicals in Canada through its Upstream, Downstream, and Chemical segments. The company was incorporated in 1880, is headquartered in Calgary, and operates as a subsidiary of Exxon Mobil Corporation.
Second-quarter 2026 net income rose to C$2.19 billion from C$949 million a year earlier, with diluted earnings per share increasing to C$4.52 from C$1.86. For the first half, net income reached C$3.13 billion, up from C$2.237 billion, and diluted EPS increased to C$6.46 from C$4.38.
Crude prices were materially higher in the quarter: WTI averaged US$92.69 a barrel versus US$63.69, and Western Canada Select averaged US$77.90 versus US$53.66. The WTI/WCS spread widened to US$14.79 from US$10.03, while average bitumen realizations climbed to C$95.79 from C$65.82 and synthetic crude realizations rose to C$141.10 from C$87.85.
Upstream output was lower at key assets. Imperial’s share of Kearl production fell to 182,000 barrels per day from 195,000, Cold Lake rose to 149,000 from 145,000, and Syncrude declined to 73,000 from 77,000. Gross Kearl production dropped to 257,000 barrels per day from 275,000, with the company citing the absence of exceptional high-quality ore grade at Kearl and extreme rainfall at Syncrude.
Downstream results improved on margins, but throughput fell. Refinery throughput declined to 331,000 barrels per day from 376,000, utilization dropped to 76% from 87%, and petroleum product sales decreased to 446,000 barrels per day from 480,000. Imperial cut its 2026 refinery throughput guidance to 370,000-380,000 barrels per day from 395,000-405,000 and its utilization outlook to 85%-88% from 91%-93%, citing unplanned downtime and a short-term rail logistics issue at Strathcona.
Cash from operating activities in the second quarter increased to C$2.704 billion from C$1.465 billion, while cash and cash equivalents rose to C$2.839 billion from C$2.386 billion at the end of the period. Dividends paid increased to C$421 million from C$367 million, or C$0.87 per share from C$0.72, and the company did not repurchase shares in the quarter. Imperial said it received TSX approval for a new normal course issuer bid covering up to 24,179,635 shares from June 29, 2026 to June 28, 2027, and said it expects to repurchase all remaining allowable shares before year-end. Today the company's shares have moved -2.72% to a price of $126.04. For more information, read the company's full 10-Q submission here.
