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Imperial Oil Q4 Earnings Surpass Estimates, Revenues Miss
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Key Takeaways
Imperial Oil's Q4 earnings and revenues fell YoY as lower upstream price realizations weighed on results.
Imperial Oil returned C$361M to its shareholders and raised its dividend 20% to 87 cents per share.
Upstream revenues and production declined, with lower bitumen prices and a segment net loss.
Imperial Oil Limited (IMO - Free Report) reported fourth-quarter 2025 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of $1.36. However, the bottom line decreased from the year-ago quarter’s $1.69 due to lower upstream price realizations.
Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.4 billion. The top line also decreased from the year-ago quarter’s level of $9 billion due to weak performance in both the Upstream and Downstream segments.
Imperial Oil Limited Price, Consensus and EPS Surprise
During the quarter, Imperial Oil returned C$361 million to its shareholders through dividend payments.
The Calgary-based integrated oil and gas company increased the quarterly dividend by 20% from 72 Canadian cents to 87 Canadian cents per share on its outstanding common shares, payable on April 1, 2026, to its shareholders of record as of March 5.
Results for the current quarter reflect after-tax identified items totaling C$320 million tied to the accelerated end-of-field life at Norman Wells, along with a separate one-time after-tax charge of C$156 million related to the optimization of materials and supplies inventory.
IMO’s Segmental Information
Upstream: Revenues of C$3.6 billion decreased from the prior-year level of C$4.7 billion. The segment reported a net loss of C$2 million compared with C$878 million in the year-ago quarter.
The company recorded average upstream production of 444,000 gross oil-equivalent barrels per day (boe/d) in the fourth quarter, which decreased from the prior-year level of 460,000 boe/d. The figure also missed our expectation of 466,000 boe/d.
IMO recorded total gross bitumen production at Kearl averaging 274,000 barrels per day (194,000 barrels Imperial Oil's share), down from 299,000 barrels per day (212,000 barrels Imperial Oil's share) in the fourth quarter of 2024. This decrease was primarily caused by wet weather.
The company also posted gross bitumen production at Cold Lake, averaging 153,000 barrels per day (bpd), which was a decrease from 157,000 bpd in the fourth quarter of 2024.
Imperial Oil noted that the Cold Lake Leming SAGD project has reached first oil and is now ramping up, as planned, toward a peak production level of about 9,000 bpd.
IMO’s share of gross production from Syncrude averaged 87,000 bpd, up from 81,000 bpd in the fourth quarter of 2024.
Bitumen price realizations totaled C$59 per barrel compared with C$71.58 in the year-ago period. IMO received an average realized price of C$80.07 per barrel for synthetic oil compared with the prior-year quarter’s C$99.10. For conventional crude oil, it received C$2.15 per barrel compared with C$42.73 in the corresponding period of 2024.
Downstream: Revenues of C$12.4 billion decreased from the prior-year level of C$14.1 billion. Net income totaled C$519 million compared with C$356 million in the year-ago period.
The company recorded petroleum product sales of 479,000 bpd, compared to 458,000 bpd in the fourth quarter of 2024. The figure was in line with our expectation. The refinery throughput in the fourth quarter averaged 408,000 bpd, down from the prior-year quarter’s level of 411,000 bpd. Moreover, the figure missed our estimate of 423,000 bpd. Imperial Oil recorded lower refinery throughput, primarily due to additional maintenance in the company's eastern manufacturing hub. The capacity utilization of 94% was down from the year-ago level of 95%. The figure also missed our estimate.
Chemical: Revenues of C$306 million decreased from C$357 million in the fourth quarter of 2024. Net income totaled C$9 million compared with C$21 million in the year-ago period.
IMO’s Total Costs & Capex
Total expenses of C$10.7 billion decreased from the year-ago quarter’s C$11 billion.
In the quarter under review, this Zacks Rank #4 (Sell) company’s capital and exploration expenditures totaled C$651 million, up from the year-ago quarter’s C$423 million.
Cash flow from operating activities was C$1.9 billion compared with C$1.8 billion in the year-ago quarter.
As of Dec. 31, 2025, Imperial Oil had cash and cash equivalents of C$1.1 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 15.2%.
IMO’s Outlook for 2026
IMO has already disclosed a capital and exploration spending budget ranging between C$2 billion and C$2.2 billion for 2026. Within its Upstream segment, production is anticipated to be in the range of 441,000-460,000 gross oil-equivalent barrels per day for the same year. Meanwhile, throughput in the Downstream segment is projected to be in the range of 395,000-405,000 barrels per day, accompanied by a capacity utilization rate of 91-93% throughout 2026.
Important Earnings at a Glance
While we have discussed IMO’s fourth-quarter results in detail, let us take a look at three other key reports in this space.
A leading oilfield services company, Baker Hughes Company (BKR - Free Report) , reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.
Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million. The strong quarterly results were primarily driven by solid performance from BKR’s Industrial & Energy Technology business segment.
As of Dec. 31, 2025, it had cash and cash equivalents of $3.7 billion. BKR had a long-term debt of $5.4 billion at the end of the reported quarter, with a debt-to-capitalization of 24.3%.
Another oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , reported a fourth-quarter 2025 adjusted net income per share of 69 cents, beating the Zacks Consensus Estimate of 54 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line marginally fell from the year-ago adjusted profit of 70 cents due to softer activity in the North American region.
Houston, TX-based oil and gas equipment and services company’s revenues of $5.7 billion increased 0.8% year over year and beat the Zacks Consensus Estimate by 4.7%.
As of Dec. 31, 2025, HAL had approximately $2.2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.5.
Another oil field service company, Liberty Energy Inc. (LBRT - Free Report) , reported a fourth-quarter 2025 adjusted net profit of 5 cents per share, beating the Zacks Consensus Estimate of a loss of 16 cents by a considerable margin. The outperformance was driven by the company’s focus on technological innovation and strong operational execution. However, the bottom line decreased from the year-ago quarter’s profit of 10 cents.
LBRT's revenues totaled $1 billion, which beat the Zacks Consensus Estimate of $862 million. The top line also increased from the prior-year quarter’s $944 million by 10%, driven by higher activity levels that meaningfully exceeded the industry.
As of Dec. 31, Liberty Energy had approximately $28 million in cash and cash equivalents. The pressure pumper’s long-term debt of $241.5 million represented a debt-to-capitalization of 10.4%.
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Imperial Oil Q4 Earnings Surpass Estimates, Revenues Miss
Key Takeaways
Imperial Oil Limited (IMO - Free Report) reported fourth-quarter 2025 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of $1.36. However, the bottom line decreased from the year-ago quarter’s $1.69 due to lower upstream price realizations.
Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.4 billion. The top line also decreased from the year-ago quarter’s level of $9 billion due to weak performance in both the Upstream and Downstream segments.
Imperial Oil Limited Price, Consensus and EPS Surprise
Imperial Oil Limited price-consensus-eps-surprise-chart | Imperial Oil Limited Quote
During the quarter, Imperial Oil returned C$361 million to its shareholders through dividend payments.
The Calgary-based integrated oil and gas company increased the quarterly dividend by 20% from 72 Canadian cents to 87 Canadian cents per share on its outstanding common shares, payable on April 1, 2026, to its shareholders of record as of March 5.
Results for the current quarter reflect after-tax identified items totaling C$320 million tied to the accelerated end-of-field life at Norman Wells, along with a separate one-time after-tax charge of C$156 million related to the optimization of materials and supplies inventory.
IMO’s Segmental Information
Upstream: Revenues of C$3.6 billion decreased from the prior-year level of C$4.7 billion. The segment reported a net loss of C$2 million compared with C$878 million in the year-ago quarter.
The company recorded average upstream production of 444,000 gross oil-equivalent barrels per day (boe/d) in the fourth quarter, which decreased from the prior-year level of 460,000 boe/d. The figure also missed our expectation of 466,000 boe/d.
IMO recorded total gross bitumen production at Kearl averaging 274,000 barrels per day (194,000 barrels Imperial Oil's share), down from 299,000 barrels per day (212,000 barrels Imperial Oil's share) in the fourth quarter of 2024. This decrease was primarily caused by wet weather.
The company also posted gross bitumen production at Cold Lake, averaging 153,000 barrels per day (bpd), which was a decrease from 157,000 bpd in the fourth quarter of 2024.
Imperial Oil noted that the Cold Lake Leming SAGD project has reached first oil and is now ramping up, as planned, toward a peak production level of about 9,000 bpd.
IMO’s share of gross production from Syncrude averaged 87,000 bpd, up from 81,000 bpd in the fourth quarter of 2024.
Bitumen price realizations totaled C$59 per barrel compared with C$71.58 in the year-ago period. IMO received an average realized price of C$80.07 per barrel for synthetic oil compared with the prior-year quarter’s C$99.10. For conventional crude oil, it received C$2.15 per barrel compared with C$42.73 in the corresponding period of 2024.
Downstream: Revenues of C$12.4 billion decreased from the prior-year level of C$14.1 billion. Net income totaled C$519 million compared with C$356 million in the year-ago period.
The company recorded petroleum product sales of 479,000 bpd, compared to 458,000 bpd in the fourth quarter of 2024. The figure was in line with our expectation. The refinery throughput in the fourth quarter averaged 408,000 bpd, down from the prior-year quarter’s level of 411,000 bpd. Moreover, the figure missed our estimate of 423,000 bpd. Imperial Oil recorded lower refinery throughput, primarily due to additional maintenance in the company's eastern manufacturing hub. The capacity utilization of 94% was down from the year-ago level of 95%. The figure also missed our estimate.
Chemical: Revenues of C$306 million decreased from C$357 million in the fourth quarter of 2024. Net income totaled C$9 million compared with C$21 million in the year-ago period.
IMO’s Total Costs & Capex
Total expenses of C$10.7 billion decreased from the year-ago quarter’s C$11 billion.
In the quarter under review, this Zacks Rank #4 (Sell) company’s capital and exploration expenditures totaled C$651 million, up from the year-ago quarter’s C$423 million.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Financial Performance for IMO
Cash flow from operating activities was C$1.9 billion compared with C$1.8 billion in the year-ago quarter.
As of Dec. 31, 2025, Imperial Oil had cash and cash equivalents of C$1.1 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 15.2%.
IMO’s Outlook for 2026
IMO has already disclosed a capital and exploration spending budget ranging between C$2 billion and C$2.2 billion for 2026. Within its Upstream segment, production is anticipated to be in the range of 441,000-460,000 gross oil-equivalent barrels per day for the same year. Meanwhile, throughput in the Downstream segment is projected to be in the range of 395,000-405,000 barrels per day, accompanied by a capacity utilization rate of 91-93% throughout 2026.
Important Earnings at a Glance
While we have discussed IMO’s fourth-quarter results in detail, let us take a look at three other key reports in this space.
A leading oilfield services company, Baker Hughes Company (BKR - Free Report) , reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.
Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million. The strong quarterly results were primarily driven by solid performance from BKR’s Industrial & Energy Technology business segment.
As of Dec. 31, 2025, it had cash and cash equivalents of $3.7 billion. BKR had a long-term debt of $5.4 billion at the end of the reported quarter, with a debt-to-capitalization of 24.3%.
Another oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , reported a fourth-quarter 2025 adjusted net income per share of 69 cents, beating the Zacks Consensus Estimate of 54 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line marginally fell from the year-ago adjusted profit of 70 cents due to softer activity in the North American region.
Houston, TX-based oil and gas equipment and services company’s revenues of $5.7 billion increased 0.8% year over year and beat the Zacks Consensus Estimate by 4.7%.
As of Dec. 31, 2025, HAL had approximately $2.2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.5.
Another oil field service company, Liberty Energy Inc. (LBRT - Free Report) , reported a fourth-quarter 2025 adjusted net profit of 5 cents per share, beating the Zacks Consensus Estimate of a loss of 16 cents by a considerable margin. The outperformance was driven by the company’s focus on technological innovation and strong operational execution. However, the bottom line decreased from the year-ago quarter’s profit of 10 cents.
LBRT's revenues totaled $1 billion, which beat the Zacks Consensus Estimate of $862 million. The top line also increased from the prior-year quarter’s $944 million by 10%, driven by higher activity levels that meaningfully exceeded the industry.
As of Dec. 31, Liberty Energy had approximately $28 million in cash and cash equivalents. The pressure pumper’s long-term debt of $241.5 million represented a debt-to-capitalization of 10.4%.