Company: IMO
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0000049938-25-000045
Chunk: 1

Company: IMPERIAL OIL LTD
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 1
Chunk 1
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,447  
  Finance leases                    536                    545                
  Total long-term debt                          3,983                  3,992  

Note 7. Other long-term obligations

                                                                                                                                                                                                             As at                  As at             
  millions of Canadian dollars                                                                                                                                                                                2025                   2024             
  Employee retirement benefits (a)                                                                                                                                                                             828                    846             
  Asset retirement obligations and other environmental liabilities (b)                                                                                                                                                  2,607                  2,641  
  Share-based incentive compensation liabilities                                                                                                                                                               197                    119             
  Operating lease liability (c)                                                                                                                                                                                147                    144             
  Other obligations                                                                                                                                                                                            122                    120             
  Total other long-term obligations                                                                                                                                                                                     3,901                  3,870  
  (a) Total recorded employee retirement benefits obligations also included $ 61 million in current liabilities (2024 - $ 61 million).                                                                                                                

  IMPERIAL OIL LIMITED  

Note 8. Financial and derivative instruments

Financial instruments

The fair value of the company’s financial instruments is determined by reference to various market data and other appropriate valuation techniques. There are no material differences between the fair value of the company’s financial instruments and the recorded carrying value. At June 30, 2025 and December 31, 2024, the fair value of long-term debt ($ 3,447

Derivative instruments

The company’s size, strong capital structure and the complementary nature of its business segments reduce the company’s enterprise-wide risk from changes in commodity prices, currency rates and interest rates. In addition, the company uses commodity-based contracts, including derivatives, to manage commodity price risk and to generate returns from trading. Commodity contracts held for trading purposes are presented in the Consolidated statement of income on a net basis in the line "Revenues" and in the Consolidated statement of cash flows in "Cash flows from (used in) operating activities". The company’s commodity derivatives are not accounted for under hedge accounting.

Credit risk associated with the company’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The company maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.

The net notional long/(short) position of derivative instruments was:

                            As at                    As at Dec 31             
  thousands of barrels      2025                     2024                     
  Crude                                   4,374                        4,260