Imperial Oil Q3 Net Income Jumps to C$2.454 Billion as Downstream Earnings Rise

Imperial Oil’s third-quarter net income more than quadrupled from a year earlier as downstream earnings climbed, even as gross oil-equivalent production fell because of lower output and planned maintenance.

For the quarter ended Sept. 30, the Canadian oil company recorded net income of C$2.454 billion, up from C$539 million in the same period last year. Diluted earnings were C$5.11 per share, compared with C$1.07. Revenue and other income totaled C$16.205 billion, up from C$12.049 billion.

Downstream net income increased to C$1.555 billion from C$444 million. Imperial attributed the gain primarily to higher margins and improved market conditions. Upstream net income rose to C$941 million from C$728 million, while chemicals earnings increased to C$52 million from C$21 million.

Gross oil-equivalent production averaged 418,000 barrels per day, down from 462,000 a year earlier. Imperial cited lower output at Kearl and planned turnaround effects at Cold Lake and Syncrude. A third-party pipeline outage also shut Kearl production for multiple days.

The company’s 2026 goal for Kearl is 280,000 gross barrels a day, of which 199,000 would be attributable to Imperial. It cited the effects of third-party events on production so far this year.

Cash from operating activities totaled C$3.228 billion. Imperial returned C$2.506 billion to shareholders, including C$2.086 billion in share repurchases and C$420 million in dividends.

Crude prices decreased from the second quarter, while the Canadian WTI/WCS spread narrowed slightly and industry refining margins improved. Imperial’s third-quarter benchmark averages were US$85.68 per barrel for West Texas Intermediate and US$71.90 for Western Canada Select.

“Imperial's advantaged integrated business model continues to deliver strong financial results across all operating segments,” Chairman, President and CEO John Whelan said.

Imperial’s third-quarter earnings call is scheduled for 11 a.m. ET Friday, Oct. 30.