Imperial Oil Ltd. has reported 427,000 gross barrels of oil equivalent per day (boed) in average production for April-June, the company’s highest second-quarter output in over 30 years with Kearl recording its highest-ever Q2 gross production averaging 275,000 bpd of bitumen.
However, Q2 net profit fell CAD 184 million ($133.43 million) year-on-year to CAD 949 million, or CAD 1.86 per share. The drop was primarily due to “lower upstream realizations and downstream margin capture”, the Calgary, Canada-based integrated oil and gas company, majority-owned by Exxon Mobil Corp., said.
“We safely completed our heaviest planned turnaround quarter in both our upstream and downstream businesses, positioning the company for a strong second half of the year”, said chair, president and chief executive John Whelan. “A significant accomplishment was the work completed at Kearl which delivers on our plans to double turnaround intervals to an industry-leading four years”.
The increased production at Kearl, compared to 255,000 bpd gross in Q2 2024, was driven by mine productivity and better reliability.
At Cold Lake, Q2 bitumen production was 145,000 bpd gross. That was down from 147,000 bpd in Q2 2024 primarily due to production and steam cycle timing and turnaround impacts, partially offset by Grand Rapids solvent-assisted SAGD. A turnaround at the Mahkeses plant has now been completed.
Meanwhile Syncrude production was 77,000 bpd gross. That was up from 66,000 bpd in Q2 2024 primarily due to the timing of an annual coker turnaround.
Downstream throughput was 376,000 bpd. Accounting for turnarounds at Nanticoke and Strathcona, which have now been completed, refinery capacity utilization was 87 percent. Refined products sales totaled 480,000 bpd.
In July Imperial started operation at what it says is Canada’s biggest renewable diesel facility. The project at the Strathcona refinery is designed to produce up to 20,000 bpd of green diesel from local feedstocks.
Upstream net income was CAD 664 million, down from CAD 799 million for Q2 2024 as lower prices offset higher production.
“Average bitumen realizations decreased by CAD 17.20 per barrel, primarily driven by lower marker prices”, Imperial said. “Synthetic crude oil realizations decreased by CAD23.71 per barrel, primarily driven by lower WTI and a weaker Synthetic/WTI spread”.
Downstream net income was CAD 322 million, up from CAD 294 million for Q2 2024 thanks to higher margins. The expansion of the government-owned Trans Mountain pipeline enabled an increase in product sales.
Meanwhile chemicals contributed CAD 21 million to Imperial’s net income, down from CAD 65 million for Q2 2024 primarily due to lower polyethylene margins.
Total cash flow from operating activities was CAD 1.47 billion, down from CAD 1.63 billion for Q2 2024. Cash and cash equivalents at the end of Q2 2025 stood at CAD 2.39 billion. Meanwhile total debt was CAD 4 billion.
Imperial paid shareholders CAD 367 million in dividends during Q2. It declared a dividend per share of CAD 0.72 for Q3.
In June it said it had received final authorization from the Toronto Stock Exchange for a new normal course issuer bid, allowing it to continue its existing share repurchase program.
“The program enables the company to purchase up to a maximum of 25,452,248 common shares during the period June 29, 2025 to June 28, 2026”, Imperial said. It expects to redeem all the shares before 2025 ends.
“This maximum includes shares purchased under the normal course issuer bid from Exxon Mobil Corp.”, Imperial added. “As in the past, Exxon Mobil Corp. has advised the company that it intends to participate to maintain its ownership percentage at approximately 69.6 percent”.
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