Core Insights - Imperial Oil Limited (IMO) reported fourth-quarter 2025 adjusted earnings per share of $1.41, exceeding the Zacks Consensus Estimate of $1.36, but down from $1.69 in the same quarter last year due to lower upstream price realizations [1] - Revenues for the quarter were $8.1 billion, missing the Zacks Consensus Estimate of $10.4 billion and decreasing from $9 billion in the prior year, attributed to weak performance in both Upstream and Downstream segments [1] Financial Performance - The company returned C$361 million to shareholders through dividend payments, increasing the quarterly dividend by 20% from 72 Canadian cents to 87 Canadian cents per share, payable on April 1, 2026 [2] - Total expenses for the quarter were C$10.7 billion, down from C$11 billion in the previous year, while capital and exploration expenditures rose to C$651 million from C$423 million [11] - Cash flow from operating activities was C$1.9 billion, slightly up from C$1.8 billion in the year-ago quarter, with cash and cash equivalents at C$1.1 billion and total debt at C$4 billion, resulting in a debt-to-capitalization ratio of 15.2% [12] Segment Performance - Upstream segment revenues were C$3.6 billion, down from C$4.7 billion year-over-year, with a net loss of C$2 million compared to a profit of C$878 million in the prior year [4] - Average upstream production was 444,000 gross oil-equivalent barrels per day (boe/d), down from 460,000 boe/d in the previous year and below the expectation of 466,000 boe/d [4] - Downstream segment revenues decreased to C$12.4 billion from C$14.1 billion year-over-year, with net income rising to C$519 million from C$356 million [8] Production and Pricing - Bitumen price realizations were C$59 per barrel, down from C$71.58 in the prior year, while synthetic oil averaged C$80.07 per barrel compared to C$99.10 previously [7] - Total gross bitumen production at Kearl averaged 274,000 barrels per day, down from 299,000 barrels per day in the fourth quarter of 2024, primarily due to wet weather [5] - The Cold Lake Leming SAGD project has reached first oil and is ramping up towards a peak production level of about 9,000 barrels per day [6] Outlook - For 2026, Imperial Oil has set a capital and exploration spending budget between C$2 billion and C$2.2 billion, with upstream production expected to range from 441,000 to 460,000 gross oil-equivalent barrels per day [13]

Core Insights - Imperial Oil Limited (IMO) reported second-quarter 2025 adjusted earnings per share of $1.34, exceeding the Zacks Consensus Estimate of $1.22, but down from $1.54 in the same quarter last year due to lower upstream price realizations, partially offset by higher production volumes [1][11] - Revenues for the quarter were $8.1 billion, missing the Zacks Consensus Estimate of $10.5 billion and down from $9.8 billion year-over-year, primarily due to weak performance in the Chemical segment [2][11] - The company returned C$367 million to shareholders through dividend payments and announced a quarterly dividend of 72 Canadian cents per share [2][3] Financial Performance - Upstream revenues were C$3.8 billion, down from C$4.6 billion year-over-year and missing expectations of C$4.8 billion, with net income of C$664 million compared to C$799 million in the prior year [4][11] - Average upstream production increased to 427,000 gross oil-equivalent barrels per day (boe/d) from 404,000 boe/d year-over-year, surpassing expectations of 416,000 boe/d [5][11] - Total gross bitumen production at Kearl averaged 275,000 barrels per day, up from 255,000 barrels per day in the second quarter of 2024, attributed to improved mine productivity [6][11] Segment Performance - Cold Lake's gross bitumen production averaged 145,000 barrels per day, a slight decrease from 147,000 barrels per day in the prior year, due to production timing and turnaround impacts [7] - The Leming SAGD project is on track, with steam injection started and first oil expected in late 2025, ramping up to a peak of around 9,000 barrels per day [8] - Chemical segment revenues were C$356 million, down from C$418 million year-over-year, with net income of C$21 million compared to C$65 million in the prior year [13] Cost and Capital Expenditures - Total expenses decreased to C$10 billion from C$11.9 billion year-over-year, also below expectations of C$13.2 billion [14] - Capital and exploration expenditures totaled C$473 million, slightly up from C$462 million in the previous year [14] Cash Flow and Debt - Cash flow from operating activities was C$1.5 billion, down from C$1.6 billion year-over-year, with cash and cash equivalents of C$2.4 billion as of June 30 [15] - Total debt amounted to C$4 billion, with a debt-to-capitalization ratio of 13.8% [15]