Imperial Oil (TSX: IMO) Q1 2026 profit at $940M as cash flow eases
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Imperial Oil Limited reported first quarter 2026 net income of $940 million, or $1.94 per diluted share, compared with $1,288 million a year earlier but up from $492 million in the fourth quarter of 2025.
First quarter 2026 total revenues and other income were $12,446 million, slightly below $12,517 million in 2025. Cash flows from operating activities were $756 million, down from $1,527 million in the prior-year quarter, while operating cash flow excluding working capital was $1,239 million, versus $1,760 million.
Upstream gross oil-equivalent production averaged 419,000 barrels per day, essentially flat year over year, with Kearl at 259,000 total gross barrels per day and Cold Lake at 155,000 gross barrels per day. Refinery throughput averaged 384,000 barrels per day, reflecting 88 percent capacity utilization, affected by unplanned downtime and Syncrude coker issues.
Imperial returned $350 million to shareholders through dividends in the quarter, declared a second quarter dividend of $0.87 per share, increased capital and exploration spending to $478 million, and indicated it intends to renew its normal course issuer bid in June 2026.
Positive
- None.
Negative
- None.
Insights
Imperial posts solid Q1 profit but lower cash flow versus last year.
Imperial Oil earned $940 million in Q1 2026, down from $1,288 million a year earlier but higher than Q4 2025. Revenue was broadly stable at $12,446 million. Upstream production held around 419,000 oil-equivalent barrels per day, with modest gains at Kearl and Cold Lake.
Cash generation softened: operating cash flow dropped to $756 million from $1,527 million, though cash flow excluding working capital remained stronger at $1,239 million. Refining utilization slipped to 88%, pressured by unplanned downtime and Syncrude feedstock disruptions, contributing to lower downstream throughput and product sales.
Capital and exploration spending increased to $478 million, while dividends paid rose to $350 million with a declared $0.87 per share dividend. The stated intent to renew the normal course issuer bid in June 2026 signals ongoing commitment to shareholder returns, with future results depending on commodity prices, operational reliability and execution of planned projects.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income Q1 2026: $940 million
Diluted EPS Q1 2026: $1.94 per share
Revenue Q1 2026: $12,446 million
+5 more
8 metrics
Net income Q1 2026
$940 million
Compared with $1,288 million in Q1 2025
Diluted EPS Q1 2026
$1.94 per share
Versus $2.52 per share in Q1 2025
Revenue Q1 2026
$12,446 million
Total revenues and other income vs $12,517 million in Q1 2025
Operating cash flow Q1 2026
$756 million
Cash flows from operating activities vs $1,527 million in Q1 2025
Capex and exploration
$478 million
Capital and exploration expenditures vs $398 million in Q1 2025
Dividends declared
$421 million; $0.87/share
Q1 2026 dividends declared vs $367 million; $0.72/share in Q1 2025
Gross oil-equivalent production
419,000 boe/d
Total gross oil-equivalent production in Q1 2026 vs 418,000 boe/d in Q1 2025
Free cash flow
$306 million
Q1 2026 free cash flow vs $1,150 million in Q1 2025
Key Terms
cash flows from operating activities excluding working capital, free cash flow, non-GAAP financial measures, unit cash operating costs, +1 more
5 terms
cash flows from operating activities excluding working capital financial
"Cash flows from operating activities excluding working capital1 of $1,239 million, compared to $1,760 million in the first quarter of 2025."
free cash flow financial
"Free cash flow is a non-GAAP financial measure that is cash flows from operating activities less additions to property, plant and equipment and equity company investments plus proceeds from asset sales."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
non-GAAP financial measures regulatory
"Certain measures included in this document are not prescribed by U.S. Generally Accepted Accounting Principles (GAAP). These measures constitute "non-GAAP financial measures" under Securities and Exchange Commission Regulation G."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
unit cash operating costs financial
"Unit cash operating costs (unit cash costs) is calculated by dividing cash operating costs by total gross oil-equivalent production, and is calculated for the Upstream segment, as well as the major Upstream assets."
normal course issuer bid financial
"Intend to renew normal course issuer bid in June 2026"
A Normal Course Issuer Bid is when a company buys back its own shares from the stock market over time. This usually shows that the company believes its stock is undervalued and wants to support its price, which can be important for investors to watch.
Earnings Snapshot
Net income (U.S. GAAP): $940 million
Q1 2026
Net income (U.S. GAAP)
$940 million
down from $1,288 million in Q1 2025
Diluted EPS
$1.94
down from $2.52 in Q1 2025
Total revenues and other income
$12,446 million
slightly below $12,517 million in Q1 2025
Operating cash flow
$756 million
down from $1,527 million in Q1 2025
Gross oil-equivalent production
419,000 boe/d
broadly flat versus 418,000 boe/d in Q1 2025
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): | ||||||||
___________________________________________________________________
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
Registrant's telephone number, including area code: | 1- | |||||||||||||||||||
____________________________________________________________________
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
| None | None | |||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02 Results of Operations and Financial Condition.
On May 1, 2026, Imperial Oil Limited (the "company" or "Imperial") by means of a press release disclosed information relating to the company's financial condition and results of operations for the fiscal quarter ended March 31, 2026. A copy of the press release is attached as Exhibit 99.1 to this report and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibit is furnished as part of this report on Form 8-K:
99.1 News release of the company on May 1, 2026 disclosing information relating to the company's estimated first quarter financial and operating results for the fiscal quarter ended March 31, 2026.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| IMPERIAL OIL LIMITED | ||||||||
Date: May 1, 2026
| By: | /s/ Ian Laing | |||||||
| Name: | Ian Laing | |||||||
| Title: | Vice-president, general counsel and corporate secretary | |||||||
| By: | /s/ Cathryn Walker | |||||||
| Name: | Cathryn Walker | |||||||
| Title: | Assistant corporate secretary | |||||||
Q1 News Release | ||||||||
Calgary, May 1, 2026 | Exhibit 99.1 | ||||
Imperial announces first quarter 2026 financial and operating results
•Quarterly net income of $940 million
•Cash flows from operating activities of $756 million and cash flows from operating activities excluding working capital1 of $1,239 million
•Quarterly Upstream production of 419,000 gross oil-equivalent barrels per day
•Kearl quarterly production of 259,000 total gross oil-equivalent barrels per day (183,000 barrels Imperial's share)
•Cold Lake quarterly production of 155,000 gross oil-equivalent barrels per day
•Downstream refinery capacity utilization of 88 percent
•Intend to renew normal course issuer bid in June 2026
First quarter | |||||||||||
| millions of Canadian dollars, unless noted | 2026 | 2025 | ∆I | ||||||||
Net income (loss) (U.S. GAAP) | 940 | 1,288 | (348) | ||||||||
Net income (loss) per common share, assuming dilution (dollars) | 1.94 | 2.52 | (0.58) | ||||||||
| Capital and exploration expenditures | 478 | 398 | +80 | ||||||||
Imperial reported estimated net income in the first quarter of $940 million, up from net income of $492 million in the fourth quarter of 2025, primarily driven by the absence of identified items1 and by higher prices, partially offset by lower volumes. Excluding identified items1, estimated net income in the fourth quarter of 2025 was $968 million.
Quarterly cash flows from operating activities were $756 million, compared to $1,918 million generated in the fourth quarter of 2025. Excluding the impact of working capital1, cash flows from operating activities were $1,239 million, compared to $1,260 million in the fourth quarter of 2025.
"Against a backdrop of significant volatility in global commodity markets, we remain committed to our long-standing corporate strategy of maximizing the value of our existing assets while progressing advantaged growth opportunities," said John Whelan, chairman, president and chief executive officer.
Upstream production in the quarter averaged 419,000 gross oil-equivalent barrels per day. At Kearl, quarterly total gross production averaged 259,000 barrels per day (183,000 barrels Imperial's share) including the impact of a third-party natural gas supply outage. Cold Lake averaged 155,000 barrels per day with continued strong solvent-assisted SAGD performance from its advantaged production at Grand Rapids. The company's share of Syncrude production in the quarter averaged 72,000 gross barrels per day, and was impacted by unplanned coker downtime.
Downstream throughput in the quarter averaged 384,000 barrels per day, resulting in refinery capacity utilization of 88 percent. Throughput was impacted by unplanned downtime and a disruption of synthetic crude feedstock caused by Syncrude's coker outage. Petroleum product sales averaged 441,000 barrels per day.
During the quarter, Imperial returned $350 million to shareholders through dividend payments and declared a second quarter dividend of 87 cents per share.
"Our competitive advantages of scale and a long-standing commitment to technology and innovation continue to support our corporate strategy and advantaged integrated business model. I am confident in our ability to generate superior cash flow, underpinning our reliable and growing dividend and our industry-leading share buyback program," said Whelan.
1 Non-GAAP financial measure - see Attachment VI for definition and reconciliation | ||||||||
After more than a century, Imperial continues to be an industry leader in applying technology and innovation to responsibly develop Canada’s energy resources. As Canada’s largest petroleum refiner, a major producer of crude oil, a key petrochemical producer and a leading fuels marketer from coast to coast, our company remains committed to high standards across all areas of our business.
imperialoil.ca ∙ youtube.com/ImperialOil ∙ x.com/ImperialOil ∙ linkedin.com/company/Imperial-Oil ∙ facebook.com/ImperialOilLimited
| IMPERIAL OIL LIMITED | ||||||||
First quarter highlights
•Net income of $940 million or $1.94 per share on a diluted basis, compared to $1,288 million or $2.52 per share in the first quarter of 2025.
•Cash flows from operating activities of $756 million, compared to cash flows from operating activities of $1,527 million in the first quarter of 2025. Cash flows from operating activities excluding working capital1 of $1,239 million, compared to $1,760 million in the first quarter of 2025.
•Capital and exploration expenditures totaled $478 million, up from $398 million in the first quarter of 2025.
•The company returned $350 million to shareholders in the first quarter of 2026 through dividends paid.
•Upstream production averaged 419,000 gross oil-equivalent barrels per day, up from 418,000 gross oil-equivalent barrels per day in the first quarter of 2025.
•Total gross bitumen production at Kearl averaged 259,000 barrels per day (183,000 barrels Imperial's share), up from 256,000 barrels per day (181,000 barrels Imperial's share) in the first quarter of 2025, despite the impact of a third-party natural gas supply outage.
•Gross bitumen production at Cold Lake averaged 155,000 barrels per day, up from 154,000 barrels per day in the first quarter of 2025.
•The company's share of gross production from Syncrude averaged 72,000 barrels per day, compared to 73,000 barrels per day in the first quarter of 2025. Lower volumes at Syncrude were driven by unplanned coker downtime, partially offset by improved mine reliability.
•Refinery throughput averaged 384,000 barrels per day, compared to 397,000 barrels per day in the first quarter of 2025. Capacity utilization was 88 percent, compared to 91 percent in the first quarter of 2025. Lower refinery throughput and capacity utilization were primarily due to unplanned downtime and a disruption of synthetic crude feedstock caused by Syncrude's coker outage.
•Petroleum product sales were 441,000 barrels per day, compared to 455,000 barrels per day in the first quarter of 2025, mainly due to the lower volumes in the supply channel.
•Chemical net income of $24 million in the quarter, compared to $31 million in the first quarter of 2025.
1 Non-GAAP financial measure - see Attachment VI for definition and reconciliation | ||||||||
4
| IMPERIAL OIL LIMITED | ||||||||
Recent business environment
During the first quarter of 2026, the price of crude oil increased relative to the fourth quarter of 2025, while the Canadian WTI/WCS spread widened. Geopolitical events in the Middle East and increasing supply uncertainty continued to drive volatility in crude oil prices and heavy crude differentials. Industry refining margins improved in the first quarter of 2026, impacted by industry supply outages.
During 2025, the United States implemented and adjusted a variety of trade-related measures, including tariffs on certain imports from Canada and several other countries. In response, Canada announced its own retaliatory tariffs. Based on Imperial's assessment of these actions and their effects to date, the company does not expect them to have a material impact on its consolidated financial position, results of operations, or cash flows.
Operating results
First quarter 2026 vs. first quarter 2025
First Quarter | ||||||||
| millions of Canadian dollars, unless noted | 2026 | 2025 | ||||||
Net income (loss) (U.S. GAAP) | 940 | 1,288 | ||||||
Net income (loss) per common share, assuming dilution (dollars) | 1.94 | 2.52 | ||||||
Upstream
Net income (loss) factor analysis
millions of Canadian dollars
Price – Average bitumen realizations decreased by $7.10 per barrel, primarily driven by a weaker WTI/WCS spread. Synthetic crude oil realizations decreased by $2.66 per barrel, primarily driven by a weaker Synthetic/WTI spread.
Volume – Inventory impacts partially offset by higher production.
Other – Primarily due to unfavourable foreign exchange impacts of about $100 million.
Marker prices and average realizations
First Quarter | ||||||||
| Canadian dollars, unless noted | 2026 | 2025 | ||||||
West Texas Intermediate (US$ per barrel) | 72.67 | 71.42 | ||||||
Western Canada Select (US$ per barrel) | 58.33 | 58.83 | ||||||
WTI/WCS Spread (US$ per barrel) | 14.34 | 12.59 | ||||||
Bitumen (per barrel) | 68.21 | 75.31 | ||||||
Synthetic crude oil (per barrel) | 96.13 | 98.79 | ||||||
Average foreign exchange rate (US$) | 0.73 | 0.70 | ||||||
5
| IMPERIAL OIL LIMITED | ||||||||
Production
First Quarter | ||||||||
| thousands of barrels per day | 2026 | 2025 | ||||||
Kearl (Imperial's share) | 183 | 181 | ||||||
Cold Lake | 155 | 154 | ||||||
Syncrude (a) | 72 | 73 | ||||||
Kearl total gross production (thousands of barrels per day) | 259 | 256 | ||||||
(a)In the first quarter of 2026, Syncrude gross production included about 8 thousand barrels per day of bitumen and other products (2025 - 2 thousand barrels per day) that were exported to the operator's facilities using an existing interconnect pipeline.
Lower production at Syncrude driven by unplanned coker downtime, partially offset by improved mine reliability.
Downstream
Net income (loss) factor analysis
millions of Canadian dollars
Other – Primarily due to product mix effects.
Refinery utilization and petroleum product sales
First Quarter | ||||||||
| thousands of barrels per day, unless noted | 2026 | 2025 | ||||||
| Refinery throughput | 384 | 397 | ||||||
Refinery capacity utilization (percent) | 88 | 91 | ||||||
Petroleum product sales | 441 | 455 | ||||||
Lower refinery throughput and capacity utilization were primarily due to unplanned downtime and a disruption of synthetic crude feedstock caused by Syncrude's coker outage.
Lower petroleum product sales were primarily due to lower volumes in the supply channel.
Chemicals
Net income (loss) factor analysis
millions of Canadian dollars
6
| IMPERIAL OIL LIMITED | ||||||||
Corporate and other
First Quarter | ||||||||
| millions of Canadian dollars | 2026 | 2025 | ||||||
Net income (loss) (U.S. GAAP) | (165) | (58) | ||||||
Current year results reflect higher incentive compensation as a result of the higher share price.
Liquidity and capital resources
First Quarter | ||||||||
| millions of Canadian dollars | 2026 | 2025 | ||||||
| Cash flows from (used in): | ||||||||
| Operating activities | 756 | 1,527 | ||||||
| Investing activities | (450) | (377) | ||||||
| Financing activities | (419) | (365) | ||||||
| Increase (decrease) in cash and cash equivalents | (113) | 785 | ||||||
| Cash and cash equivalents at period end | 1,029 | 1,764 | ||||||
Cash flows from operating activities primarily reflect lower earnings and unfavourable working capital impacts.
Cash flows used in investing activities primarily reflect higher additions to property, plant and equipment.
Cash flows used in financing activities primarily reflect:
First Quarter | ||||||||
| millions of Canadian dollars, unless noted | 2026 | 2025 | ||||||
Dividends paid | 350 | 307 | ||||||
Per share dividend paid (dollars) | 0.72 | 0.60 | ||||||
Share repurchases (a) | — | — | ||||||
Number of shares purchased (millions) (a) | — | — | ||||||
(a)The company did not purchase any shares in the first quarter of 2026 and 2025.
Key financial and operating data follow.
7
| IMPERIAL OIL LIMITED | ||||||||
Forward-looking statements
Statements of future events or conditions in this report, including projections, targets, expectations, estimates, and business plans, are forward-looking statements. Similarly, discussion of roadmaps or future plans related to carbon capture, transportation and storage, biofuel, hydrogen, and other future plans to reduce emissions and emission intensity of the company, its affiliates and third parties are dependent on future market factors, such as continued technological progress, policy support and timely rule-making and permitting, and represent forward-looking statements. Forward-looking statements can be identified by words such as believe, anticipate, intend, propose, plan, goal, seek, estimate, expect, future, continue, likely, may, should, will and similar references to future periods. Forward-looking statements in this report include, but are not limited to, references to the renewal of the company’s normal course issuer bid; the company’s strategy of maximizing asset value while progressing growth opportunities; the company’s commitment to technology and innovation; the company’s ability to generate cash flow, grow dividends and deliver share buybacks; and the impact on the company of trade-related actions.
Forward-looking statements are based on the company's current expectations, estimates, projections and assumptions at the time the statements are made. Actual future financial and operating results, including expectations and assumptions concerning, for the renewal of the company’s normal course issuer bid, approval of the Toronto Stock Exchange and participation of the company’s majority shareholder; future energy demand, supply and mix; production rates, growth and mix across various assets; project plans, timing, costs, technical evaluations and capacities and the company’s ability to effectively execute on these plans and operate its assets; the adoption and impact of new facilities or technologies on reductions to greenhouse gas emissions intensity, including but not limited to technologies using solvents to replace energy intensive steam at Cold Lake, Strathcona renewable diesel, carbon capture and storage including in connection with hydrogen for the renewable diesel project, recovery technologies and efficiency projects, and any changes in the scope, terms, or costs of such projects; for shareholder returns, assumptions such as cash flow forecasts, financing sources and capital structure, participation of the company’s majority shareholder in the normal course issuer bid, and the results of periodic and ongoing evaluation of alternate uses of capital; the amount and timing of emissions reductions, including the impact of lower carbon fuels; the degree and timeliness of support that will be provided by policymakers and other stakeholders for various new technologies such as carbon capture and storage; receipt of regulatory and third-party approvals in a timely manner, especially with respect to large scale emissions reduction projects; availability and performance of third-party service providers, including ExxonMobil global capability centres and other service providers located outside of Canada; refinery utilization and product sales; applicable laws and government policies, including with respect to climate change, greenhouse gas emissions reductions and low carbon fuels; the ability to offset any ongoing or renewed inflationary pressures; capital and environmental expenditures; cash generation, financing sources and capital structure, such as dividends and shareholder returns, including the timing and amounts of share repurchases; and commodity prices, foreign exchange rates and general market conditions, could differ materially depending on a number of factors.
These factors include global, regional or local changes in supply and demand for oil, natural gas, petroleum and petrochemical products, feedstocks and other market factors, economic conditions and seasonal fluctuations and resulting demand, price, differential and margin impacts, including Canadian and foreign government action with respect to supply levels, prices, trade tariffs, trade sanctions or trade controls, disruptions, realignment or breaking of trade alliances or agreements or a broader breakdown in global trade, and disruptions in military alliances or wars; political or regulatory events, including changes in law or government policy, applicable royalty rates, and tax laws; third-party opposition to company and service provider operations, projects and infrastructure; competition from alternative energy sources, other emission reduction technologies, and established competitors in such markets; availability and allocation of capital; the receipt, in a timely manner, of regulatory and third-party approvals, including for new technologies relating to the company’s lower emissions business activities; failure, delay, reduction, revocation or uncertainty regarding supportive policy and market development for the adoption of emerging lower emission energy technologies and other technologies that support emissions reductions; environmental regulation, including climate change and greenhouse gas regulation and changes to such regulation; unanticipated technical or operational difficulties; project management and schedules and timely completion of projects; the results of research programs and new technologies, including with respect to greenhouse gas emissions, and the ability to bring new technologies to scale on a commercially competitive basis, and the competitiveness of alternative energy and other emission reduction technologies; availability and performance of third-party service providers, including ExxonMobil global capability centres and other services providers located outside of Canada; environmental risks inherent in
8
| IMPERIAL OIL LIMITED | ||||||||
oil and gas exploration and production activities; effectiveness of company risk management programs and emergency response preparedness; operational hazards and risks; cybersecurity incidents including incidents caused by actors employing emerging technologies such as artificial intelligence; currency exchange rates; general economic conditions, including continued or renewed inflation and the occurrence and duration of economic recessions or downturns; and other factors discussed in Item 1A risk factors and Item 7 management’s discussion and analysis of financial condition and results of operations of Imperial’s most recent annual report on Form 10-K.
Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Imperial. Imperial’s actual results may differ materially from those expressed or implied by its forward-looking statements and readers are cautioned not to place undue reliance on them. Imperial undertakes no obligation to update any forward-looking statements contained herein, except as required by applicable law.
Forward-looking and other statements regarding Imperial's environmental, social and other sustainability efforts and aspirations are not an indication that these statements are material to investors or require disclosure in the company's filings with securities regulators. In addition, historical, current and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future, including future rule-making. Individual projects or opportunities may advance based on a number of factors, including availability of stable and supportive policy, permitting, technological advancement for cost-effective abatement, insights from the company planning process, and alignment with partners and other stakeholders.
In this release all dollar amounts are expressed in Canadian dollars unless otherwise stated. This release should be read in conjunction with Imperial’s most recent Form 10-K. Note that numbers may not add due to rounding.
The term “project” as used in this release can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.
In this release, unless the context otherwise indicates, reference to “the company” or “Imperial” includes Imperial Oil Limited and its subsidiaries.
9
| IMPERIAL OIL LIMITED | ||||||||
| Attachment I | ||||||||
Three Months | ||||||||
| millions of Canadian dollars, unless noted | 2026 | 2025 | ||||||
| Net income (loss) (U.S. GAAP) | ||||||||
| Total revenues and other income | 12,446 | 12,517 | ||||||
| Total expenses | 11,214 | 10,829 | ||||||
| Income (loss) before income taxes | 1,232 | 1,688 | ||||||
| Income taxes | 292 | 400 | ||||||
| Net income (loss) | 940 | 1,288 | ||||||
Net income (loss) per common share (dollars) | 1.94 | 2.53 | ||||||
Net income (loss) per common share - assuming dilution (dollars) | 1.94 | 2.52 | ||||||
| Other financial data | ||||||||
| Gain (loss) on asset sales, after-tax | 7 | 9 | ||||||
Total assets at March 31 | 45,453 | 43,889 | ||||||
Total debt at March 31 | 3,993 | 4,006 | ||||||
Shareholders' equity at March 31 | 22,748 | 24,411 | ||||||
| Dividends declared on common stock | ||||||||
| Total | 421 | 367 | ||||||
Per common share (dollars) | 0.87 | 0.72 | ||||||
| Millions of common shares outstanding | ||||||||
At March 31 | 483.6 | 509.0 | ||||||
| Average - assuming dilution | 484.8 | 510.2 | ||||||
10
| IMPERIAL OIL LIMITED | ||||||||
| Attachment II | ||||||||
Three Months | ||||||||
| millions of Canadian dollars | 2026 | 2025 | ||||||
| Total cash and cash equivalents at period end | 1,029 | 1,764 | ||||||
| Operating activities | ||||||||
| Net income (loss) | 940 | 1,288 | ||||||
| Adjustments for non-cash items: | ||||||||
| Depreciation and depletion (includes impairments) | 520 | 531 | ||||||
| (Gain) loss on asset sales | (8) | (10) | ||||||
| Deferred income taxes and other | (346) | (31) | ||||||
| Changes in operating assets and liabilities | (483) | (233) | ||||||
| All other items - net | 133 | (18) | ||||||
| Cash flows from (used in) operating activities | 756 | 1,527 | ||||||
| Investing activities | ||||||||
| Additions to property, plant and equipment | (475) | (398) | ||||||
| Proceeds from asset sales | 9 | 11 | ||||||
| Loans to equity companies - net | 16 | 10 | ||||||
| Cash flows from (used in) investing activities | (450) | (377) | ||||||
| Cash flows from (used in) financing activities | (419) | (365) | ||||||
11
| IMPERIAL OIL LIMITED | ||||||||
| Attachment III | ||||||||
Three Months | ||||||||
| millions of Canadian dollars | 2026 | 2025 | ||||||
Net income (loss) (U.S. GAAP) | ||||||||
| Upstream | 470 | 731 | ||||||
Downstream | 611 | 584 | ||||||
Chemical | 24 | 31 | ||||||
| Corporate and other | (165) | (58) | ||||||
| Net income (loss) | 940 | 1,288 | ||||||
| Revenues and other income | ||||||||
| Upstream | 4,021 | 4,458 | ||||||
Downstream | 13,910 | 14,019 | ||||||
Chemical | 336 | 372 | ||||||
| Eliminations / Corporate and other | (5,821) | (6,332) | ||||||
| Revenues and other income | 12,446 | 12,517 | ||||||
| Purchases of crude oil and products | ||||||||
| Upstream | 1,719 | 1,862 | ||||||
Downstream | 12,062 | 11,987 | ||||||
Chemical | 226 | 253 | ||||||
| Eliminations / Corporate and other | (5,829) | (6,346) | ||||||
| Purchases of crude oil and products | 8,178 | 7,756 | ||||||
| Production and manufacturing | ||||||||
| Upstream | 1,236 | 1,176 | ||||||
Downstream | 463 | 457 | ||||||
Chemical | 52 | 51 | ||||||
| Eliminations / Corporate and other | 3 | 2 | ||||||
| Production and manufacturing | 1,754 | 1,686 | ||||||
| Selling and general | ||||||||
| Upstream | — | — | ||||||
Downstream | 180 | 174 | ||||||
Chemical | 22 | 22 | ||||||
| Eliminations / Corporate and other | 195 | 63 | ||||||
| Selling and general | 397 | 259 | ||||||
| Capital and exploration expenditures | ||||||||
| Upstream | 362 | 266 | ||||||
Downstream | 91 | 88 | ||||||
Chemical | 3 | 3 | ||||||
| Corporate and other | 22 | 41 | ||||||
| Capital and exploration expenditures | 478 | 398 | ||||||
| Exploration expenses charged to Upstream income included above | 3 | 2 | ||||||
12
| IMPERIAL OIL LIMITED | ||||||||
| Attachment IV | ||||||||
| Operating statistics | Three Months | |||||||
| 2026 | 2025 | |||||||
Gross crude oil production (thousands of barrels per day) | ||||||||
Kearl | 183 | 181 | ||||||
| Cold Lake | 155 | 154 | ||||||
Syncrude (a) | 72 | 73 | ||||||
| Conventional | 5 | 5 | ||||||
| Total crude oil production | 415 | 413 | ||||||
Gross natural gas production (millions of cubic feet per day) | 25 | 30 | ||||||
Gross oil-equivalent production (b) | 419 | 418 | ||||||
| (thousands of oil-equivalent barrels per day) | ||||||||
Net crude oil production (thousands of barrels per day) | ||||||||
Kearl | 175 | 169 | ||||||
| Cold Lake | 119 | 123 | ||||||
Syncrude (a) | 60 | 62 | ||||||
| Conventional | 4 | 4 | ||||||
| Total crude oil production | 358 | 358 | ||||||
Net natural gas production (millions of cubic feet per day) | 25 | 30 | ||||||
Net oil-equivalent production (b) | 362 | 363 | ||||||
| (thousands of oil-equivalent barrels per day) | ||||||||
Kearl blend sales (thousands of barrels per day) | 262 | 259 | ||||||
Cold Lake blend sales (thousands of barrels per day) | 207 | 207 | ||||||
Average realizations (Canadian dollars) | ||||||||
Bitumen (per barrel) | 68.21 | 75.31 | ||||||
Synthetic crude oil (per barrel) | 96.13 | 98.79 | ||||||
Conventional crude oil (per barrel) | 52.44 | 48.70 | ||||||
Refinery throughput (thousands of barrels per day) | 384 | 397 | ||||||
Refinery capacity utilization (percent) | 88 | 91 | ||||||
Petroleum product sales (thousands of barrels per day) | ||||||||
| Gasolines | 211 | 215 | ||||||
| Heating, diesel and jet fuels | 169 | 175 | ||||||
Lube oils and other products | 49 | 50 | ||||||
| Heavy fuel oils | 12 | 15 | ||||||
| Net petroleum products sales | 441 | 455 | ||||||
Petrochemical sales (thousands of tonnes) | 180 | 165 | ||||||
(a)Syncrude gross and net production included bitumen and other products that were exported to the operator’s facilities using an existing interconnect pipeline.
Gross bitumen and other products production (thousands of barrels per day) | 8 | 2 | ||||||
Net bitumen and other products production (thousands of barrels per day) | 7 | 2 | ||||||
(b)Gas converted to oil-equivalent at six million cubic feet per one thousand barrels.
13
| IMPERIAL OIL LIMITED | ||||||||
| Attachment V | ||||||||
| Net income (loss) per | ||||||||
Net income (loss) (U.S. GAAP) | common share - diluted (a) | |||||||
| millions of Canadian dollars | Canadian dollars | |||||||
| 2022 | ||||||||
| First Quarter | 1,173 | 1.75 | ||||||
| Second Quarter | 2,409 | 3.63 | ||||||
| Third Quarter | 2,031 | 3.24 | ||||||
| Fourth Quarter | 1,727 | 2.86 | ||||||
| Year | 7,340 | 11.44 | ||||||
| 2023 | ||||||||
| First Quarter | 1,248 | 2.13 | ||||||
| Second Quarter | 675 | 1.15 | ||||||
| Third Quarter | 1,601 | 2.76 | ||||||
| Fourth Quarter | 1,365 | 2.47 | ||||||
| Year | 4,889 | 8.49 | ||||||
| 2024 | ||||||||
| First Quarter | 1,195 | 2.23 | ||||||
| Second Quarter | 1,133 | 2.11 | ||||||
| Third Quarter | 1,237 | 2.33 | ||||||
| Fourth Quarter | 1,225 | 2.37 | ||||||
| Year | 4,790 | 9.03 | ||||||
| 2025 | ||||||||
| First Quarter | 1,288 | 2.52 | ||||||
| Second Quarter | 949 | 1.86 | ||||||
| Third Quarter | 539 | 1.07 | ||||||
| Fourth Quarter | 492 | 1.00 | ||||||
| Year | 3,268 | 6.48 | ||||||
| 2026 | ||||||||
| First Quarter | 940 | 1.94 | ||||||
(a)Computed using the average number of shares outstanding during each period. The sum of the quarters presented may not add to the year total.
14
| IMPERIAL OIL LIMITED | ||||||||
Attachment VI
Non-GAAP financial measures and other specified financial measures
Certain measures included in this document are not prescribed by U.S. Generally Accepted Accounting Principles (GAAP). These measures constitute "non-GAAP financial measures" under Securities and Exchange Commission Regulation G and Item 10(e) of Regulation S-K, and "specified financial measures" under National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure of the Canadian Securities Administrators.
Reconciliation of these non-GAAP financial measures to the most comparable GAAP measure, and other information required by these regulations, have been provided. Non-GAAP financial measures and specified financial measures are not standardized financial measures under GAAP and do not have a standardized definition. As such, these measures may not be directly comparable to measures presented by other companies, and should not be considered a substitute for GAAP financial measures.
Cash flows from (used in) operating activities excluding working capital
Cash flows from (used in) operating activities excluding working capital is a non-GAAP financial measure that is the total cash flows from operating activities less the changes in operating assets and liabilities in the period. The most directly comparable financial measure that is disclosed in the financial statements is "Cash flows from (used in) operating activities" within the company’s Consolidated statement of cash flows. Management believes it is useful for investors to consider these numbers in comparing the underlying performance of the company’s business across periods when there are significant period-to-period differences in the amount of changes in working capital. Changes in working capital is equal to “Changes in operating assets and liabilities” as disclosed in the company’s Consolidated statement of cash flows and in Attachment II of this document. This measure assesses the cash flows at an operating level, and as such, does not include proceeds from asset sales as defined in Cash flows from operating activities and asset sales in the Frequently Used Terms section of the company’s annual Form 10-K.
Reconciliation of cash flows from (used in) operating activities excluding working capital
Three Months | ||||||||
| millions of Canadian dollars | 2026 | 2025 | ||||||
| From Imperial's Consolidated statement of cash flows | ||||||||
| Cash flows from (used in) operating activities | 756 | 1,527 | ||||||
| Less changes in working capital | ||||||||
| Changes in operating assets and liabilities | (483) | (233) | ||||||
| Cash flows from (used in) operating activities excl. working capital | 1,239 | 1,760 | ||||||
15
| IMPERIAL OIL LIMITED | ||||||||
Free cash flow
Free cash flow is a non-GAAP financial measure that is cash flows from operating activities less additions to property, plant and equipment and equity company investments plus proceeds from asset sales. The most directly comparable financial measure that is disclosed in the financial statements is "Cash flows from (used in) operating activities" within the company’s Consolidated statement of cash flows. This measure is used to evaluate cash available for financing activities (including but not limited to dividends and share purchases) after investment in the business.
Reconciliation of free cash flow
| Three Months | ||||||||
| millions of Canadian dollars | 2026 | 2025 | ||||||
| From Imperial's Consolidated statement of cash flows | ||||||||
| Cash flows from (used in) operating activities | 756 | 1,527 | ||||||
| Cash flows from (used in) investing activities | ||||||||
| Additions to property, plant and equipment | (475) | (398) | ||||||
| Proceeds from asset sales | 9 | 11 | ||||||
| Loans to equity companies - net | 16 | 10 | ||||||
| Free cash flow | 306 | 1,150 | ||||||
Net income (loss) excluding identified items
Net income (loss) excluding identified items is a non-GAAP financial measure that is total net income (loss) excluding individually significant non-operational events with an absolute corporate total earnings impact of at least $100 million in a given quarter. Net income (loss) excluding identified items per common share is a non-GAAP ratio which is calculated by dividing Net income (loss) excluding identified items by the weighted-average number of common shares outstanding, assuming dilution. The net income (loss) impact of an identified item for an individual segment in a given quarter may be less than $100 million when the item impacts several periods or several segments. Net income (loss) excluding identified items does include non-operational earnings events or impacts that are generally below the $100 million threshold utilized for identified items. The most directly comparable financial measure that is disclosed in the financial statements is "Net income (loss)" within the company’s Consolidated statement of income. Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing significant non-operational events from business results. The company believes this view provides investors increased transparency into business results and trends, and provides investors with a view of the business as seen through the eyes of management. Net income (loss) excluding identified items is not meant to be viewed in isolation or as a substitute for net income (loss) as prepared in accordance with U.S. GAAP. All identified items are presented on an after-tax basis.
Reconciliation of net income (loss) excluding identified items
There were no identified items in the first quarter of 2026 and 2025.
In the fourth quarter of 2025, net income was $492 million. Results included identified items related to impairments of $264 million after-tax ($348 million before-tax) and other of $212 million after-tax ($279 million before-tax). Excluding identified items, net income in the fourth quarter of 2025 was $968 million.
16
| IMPERIAL OIL LIMITED | ||||||||
Cash operating costs (cash costs)
Cash operating costs is a non-GAAP financial measure that consists of total expenses, less purchases of crude oil and products, federal excise taxes and fuel charge, financing, and costs that are non-cash in nature, including depreciation and depletion, and non-service pension and postretirement benefit. The components of cash operating costs include "Production and manufacturing", "Selling and general" and "Exploration" from the company’s Consolidated statement of income, and as disclosed in Attachment III of this document. The sum of these income statement lines serves as an indication of cash operating costs and does not reflect the total cash expenditures of the company. The most directly comparable financial measure that is disclosed in the financial statements is "Total expenses" within the company’s Consolidated statement of income. This measure is useful for investors to understand the company’s efforts to optimize cash through disciplined expense management.
Reconciliation of cash operating costs
| Three Months | ||||||||
| millions of Canadian dollars | 2026 | 2025 | ||||||
| From Imperial's Consolidated statement of income | ||||||||
| Total expenses | 11,214 | 10,829 | ||||||
| Less: | ||||||||
| Purchases of crude oil and products | 8,178 | 7,756 | ||||||
| Federal excise taxes and fuel charge | 348 | 592 | ||||||
| Depreciation and depletion (includes impairments) | 520 | 531 | ||||||
| Non-service pension and postretirement benefit | 3 | 5 | ||||||
| Financing | 11 | (2) | ||||||
| Cash operating costs | 2,154 | 1,947 | ||||||
Components of cash operating costs
| Three Months | ||||||||
| millions of Canadian dollars | 2026 | 2025 | ||||||
| From Imperial's Consolidated statement of income | ||||||||
| Production and manufacturing | 1,754 | 1,686 | ||||||
| Selling and general | 397 | 259 | ||||||
| Exploration | 3 | 2 | ||||||
| Cash operating costs | 2,154 | 1,947 | ||||||
Segment contributions to total cash operating costs
| Three Months | ||||||||
| millions of Canadian dollars | 2026 | 2025 | ||||||
| Upstream | 1,239 | 1,178 | ||||||
| Downstream | 643 | 631 | ||||||
| Chemicals | 74 | 73 | ||||||
| Eliminations / Corporate and other | 198 | 65 | ||||||
| Cash operating costs | 2,154 | 1,947 | ||||||
17
| IMPERIAL OIL LIMITED | ||||||||
Unit cash operating costs (unit cash costs)
Unit cash operating costs is a non-GAAP ratio. Unit cash operating costs (unit cash costs) is calculated by dividing cash operating costs by total gross oil-equivalent production, and is calculated for the Upstream segment, as well as the major Upstream assets. Cash operating costs is a non-GAAP financial measure and is disclosed and reconciled above. This measure is useful for investors to understand the expense management efforts of the company’s major assets as a component of the overall Upstream segment. Unit cash operating cost, as used by management, does not directly align with the definition of “Average unit production costs” as set out by the U.S. Securities and Exchange Commission (SEC), and disclosed in the company’s SEC Form 10-K.
Components of unit cash operating costs
Three Months | ||||||||||||||||||||||||||
2026 | 2025 | |||||||||||||||||||||||||
| millions of Canadian dollars | Upstream (a) | Kearl | Cold Lake | Syncrude | Upstream (a) | Kearl | Cold Lake | Syncrude | ||||||||||||||||||
| Production and manufacturing | 1,236 | 487 | 279 | 413 | 1,176 | 484 | 285 | 353 | ||||||||||||||||||
| Selling and general | — | — | — | — | — | — | — | — | ||||||||||||||||||
| Exploration | 3 | — | — | — | 2 | — | — | — | ||||||||||||||||||
| Cash operating costs | 1,239 | 487 | 279 | 413 | 1,178 | 484 | 285 | 353 | ||||||||||||||||||
| Gross oil-equivalent production | 419 | 183 | 155 | 72 | 418 | 181 | 154 | 73 | ||||||||||||||||||
| (thousands of barrels per day) | ||||||||||||||||||||||||||
| Unit cash operating cost ($/oeb) | 32.86 | 29.57 | 20.00 | 63.73 | 31.31 | 29.71 | 20.56 | 53.73 | ||||||||||||||||||
USD converted at the YTD average forex 2026 US$0.73; 2025 US$0.70 | 23.99 | 21.59 | 14.60 | 46.52 | 21.92 | 20.80 | 14.39 | 37.61 | ||||||||||||||||||
(a)Upstream includes Imperial's share of Kearl, Cold Lake, Syncrude and other.
18
FAQ
How did Imperial Oil (IMO) perform financially in Q1 2026?
Imperial Oil reported Q1 2026 net income of $940 million, or $1.94 per diluted share, compared with $1,288 million and $2.52 per share in Q1 2025. Total revenues and other income were $12,446 million, slightly below $12,517 million a year earlier.
What were Imperial Oil (IMO) cash flows and free cash flow in Q1 2026?
Cash flows from operating activities were $756 million in Q1 2026, down from $1,527 million a year earlier. Operating cash flow excluding working capital was $1,239 million. Free cash flow, after capital spending and adjusted for asset sales and equity loans, totaled $306 million versus $1,150 million in Q1 2025.
What were Imperial Oil (IMO) production levels in Q1 2026?
Total gross oil-equivalent production averaged 419,000 barrels per day in Q1 2026, similar to 418,000 a year earlier. Kearl total gross output was 259,000 barrels per day, Cold Lake 155,000, and Syncrude 72,000. Net oil-equivalent production was 362,000 barrels per day.
How did Imperial Oil’s downstream and refining operations perform in Q1 2026?
Refinery throughput averaged 384,000 barrels per day in Q1 2026 versus 397,000 in Q1 2025. Refinery capacity utilization was 88%, down from 91%, mainly due to unplanned downtime and disrupted synthetic crude feedstock. Petroleum product sales were 441,000 barrels per day.
What were Imperial Oil’s key non-GAAP measures in Q1 2026?
Imperial reported operating cash flow excluding working capital of $1,239 million, compared with $1,760 million in Q1 2025. Free cash flow was $306 million. Upstream unit cash operating costs were $32.86 per oil-equivalent barrel, versus $31.31 a year earlier, reflecting higher underlying cash operating costs.