Company: IMO
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000049938-25-000070
Chunk: 2

Company: IMPERIAL OIL LTD
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 2
Chunk 2
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Item 2. Management’s discussion and analysis of financial condition and results of operations

Recent business environment

During the third quarter of 2025, the price of crude oil increased slightly relative to second quarter of 2025, while the Canadian WTI/WCS spread remained relatively flat with the second quarter of 2025. Industry refining margins improved in the third quarter of 2025, driven by strong seasonal demand and global diesel supply disruptions.

During 2025, the United States announced a variety of trade-related actions, including the imposition of tariffs on imports from Canada and several other countries. In response, Canada announced its own retaliatory tariffs. Despite the current uncertainty as to what effects these actions will ultimately have on Imperial, its suppliers and its customers, the company does not anticipate any material near-term financial impacts.

Operating results

Third quarter 2025 vs. third quarter 2024

                                                                       Third Quarter             
  millions of Canadian dollars, unless noted                                    2025       2024  
 ─────────────────────────────────────────────────────────────────────────────────────────────────
  Net income (loss) (U. S. GAAP)                                                 539      1,237  
  Net income (loss) per common share, assuming dilution (dollars)               1.07       2.33  
  Net income (loss) excluding identified items 1                               1,094      1,237  

Current quarter results include identified items1 of a $306 million after-tax ($406 million before-tax) non-cash impairment charge and a $249 million after-tax ($330 million before-tax) restructuring charge.

Upstream

Net income (loss) factor analysis

millions of Canadian dollars

Price - Average bitumen realizations decreased by $9.02 per barrel, primarily driven by lower marker prices partially offset by narrowing WTI/WCS spread. Synthetic crude oil realizations decreased by $13.29 per barrel, primarily driven by lower WTI and a weaker Synthetic/WTI spread.

Volume - Inventory impacts partially offset by higher production.

Royalty - Lower royalties were primarily driven by lower commodity prices.

¹ non-GAAP financial measure - see non-GAAP financial measures and other specified financial measures for definition and reconciliation

  IMPERIAL OIL LIMITED  

Marker prices and average realizations

                                                Third Quarter              
  Canadian dollars, unless noted                         2025        2024  
 ───────────────────────────────────────────────────────────────────────────
  West Texas Intermediate (US$ per barrel)