Imperial announces fourth quarter 2025 financial and operating results

Executive Summary

• Imperial Oil reported Q4 2025 net income of C$492 million ($1.00 per diluted share), a decline from the prior year but still positive, and net income excluding identified items of C$968 million.
• Upstream production averaged 444 kbbl/d (gross oil‑equivalent), while downstream refinery capacity utilization was 94 % for the quarter; annual production reached a 30‑year high of 438 kbbl/d.
• The company returned $2.072 billion to shareholders, increasing the quarterly dividend by 20 % to C$0.87 per share and completing share repurchases under its normal‑course issuer bid program.

Key Details

• Financial Performance
• Net income (U.S. GAAP): C$492 M vs. C$1,225 M YoY; net income excluding identified items: C$968 M.
• Cash flow from operating activities: C$1.918 B (up from C$1.789 B YoY).
• Capital & exploration expenditures: C$651 M (up from C$423 M YoY).
• Production Metrics
• Upstream gross oil‑equivalent production: 444 kbbl/d (Q4); 438 kbbl/d annual – highest in over 30 years.
• Kearl (Imperial’s share) Q4 production: 194 kbbl/d; annual 199 kbbl/d.
• Cold Lake Q4 production: 153 kbbl/d; annual 151 kbbl/d.
• Syncrude share of production: 87 kbbl/d (Q4).
• Downstream Operations
• Refinery throughput Q4: 408 kbbl/d; capacity utilization 94 % (year‑to‑date 93 %).
• Petroleum product sales Q4: 479 kbbl/d (up from 458 kbbl/d YoY).
• Shareholder Returns
• Total returned to shareholders Q4: C$2.072 B (C$361 M dividends, C$1.711 B share repurchases).
• Quarterly dividend increased 20 % to C$0.87 per share; annualized dividend now C$3.48 per share.
• Identified Items & Adjustments
• Q4 identified items: $320 M after‑tax (Norman Wells field‑life acceleration) + $156 M after‑tax (materials & supplies inventory optimization).
• Full‑year identified items also include a C$306 M non‑cash impairment of the Calgary campus and a C$249 M restructuring charge.
• Cash Position
• Cash & cash equivalents at period end: C$1.142 B (up from C$0.979 B).
• Free cash flow Q4: C$1.357 B; FY2025 free cash flow: C$4.816 B.

Notable Quotes

“This past year demonstrated the strength of our integrated business model… Looking ahead, we are confident in our plans to profitably grow volumes, lower unit cash costs, and progress our restructuring…” – John Whelan, Chairman, President & CEO.

Materiality: Material – Positive (the release contains comprehensive earnings, production, and shareholder‑return information that is material to investors.)