Imperial Oil(US:IMO)2025-10-31 12:10Financial Performance - Net income for Q3 2025 was $539 million, down from $1,237 million in Q3 2024, with net income excluding identified items at $1,094 million[11] - Net income for the nine months of 2025 was CAD 2,776 million, a decrease of 22% compared to CAD 3,565 million in 2024[58] - Total revenues for the nine months of 2025 were CAD 35,798 million, down 8% from CAD 38,925 million in 2024[58] - Total revenues and other income for Q3 2025 were CAD 12,049 million, down 9.1% from CAD 13,259 million in Q3 2024[62] - Upstream net income decreased to CAD 728 million in Q3 2025 from CAD 1,027 million in Q3 2024, reflecting a decline of 29.1%[62] - Downstream net income increased significantly to CAD 444 million in Q3 2025, compared to CAD 205 million in Q3 2024, marking a growth of 116.6%[62] Production and Operations - Upstream production averaged 462,000 gross oil-equivalent barrels per day, the highest quarterly production in over 30 years, compared to 447,000 barrels per day in Q3 2024[11] - Kearl achieved record production of 316,000 barrels per day (Imperial's share: 224,000 barrels), up from 295,000 barrels per day in Q3 2024[11] - Gross crude oil production reached 457,000 barrels per day in Q3 2025, an increase of 3.4% from 442,000 barrels per day in Q3 2024[64] - Refinery throughput averaged 425,000 barrels per day, up from 389,000 barrels per day in Q3 2024, with capacity utilization at 98%[11] - Refinery throughput increased to 400 thousand barrels per day in 2025, compared to 395 thousand barrels per day in 2024, resulting in a refinery capacity utilization of 92%[40] Cash Flow and Shareholder Returns - Cash flows from operating activities were $1,798 million, an increase from $1,487 million in Q3 2024[11] - Cash flows from operating activities rose to CAD 4,790 million in 2025, up from CAD 4,192 million in 2024, reflecting favorable working capital impacts[42] - The company returned $1,835 million to shareholders, including $366 million in dividends and $1,469 million in share repurchases[11] - Share repurchases totaled CAD 1,469 million in 2025, with 12.2 million shares purchased under the normal course issuer bid program[44] - The company declared dividends of CAD 1,094 million for the nine months of 2025, an increase from CAD 960 million in 2024, with a per share dividend of CAD 2.16[58] Costs and Expenditures - Capital and exploration expenditures totaled $505 million, an increase from $486 million in Q3 2024[11] - Capital and exploration expenditures for Q3 2025 totaled CAD 505 million, slightly up from CAD 486 million in Q3 2024[62] - Cash operating costs for Q3 2025 increased to CAD 2,248 million, up 29.1% from CAD 1,741 million in Q3 2024[79] - Production and manufacturing costs in Q3 2025 were CAD 1,625 million, reflecting a 7.1% increase from CAD 1,517 million in Q3 2024[80] - The total cash operating costs for the first nine months of 2025 were CAD 6,110 million, an increase of 9.8% from CAD 5,563 million in the same period of 2024[79] Market Realizations - Average bitumen realizations decreased by $9.02 per barrel, while synthetic crude oil realizations decreased by $13.29 per barrel compared to Q3 2024[17] - Average realizations for synthetic crude oil decreased to CAD 91.12 per barrel in Q3 2025 from CAD 104.41 per barrel in Q3 2024, a decline of 12.7%[64] Strategic Initiatives - The restructuring plan announced in late September aims to enhance efficiency and effectiveness by centralizing corporate and technical activities[8] - The company anticipates completing its accelerated normal course issuer bid (NCIB) program before year-end[7] - The company plans to accelerate share repurchases under its normal course issuer bid program, aiming to purchase up to 25,452,248 common shares by June 28, 2026[45] - Forward-looking statements indicate a focus on increasing cash flow, delivering shareholder returns, and leveraging technology for future growth[48]