Company: IMO
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0000049938-25-000028
Chunk: 2

Company: IMPERIAL OIL LTD
Filing Date: 2025-05-05
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 first quarter of 2025, the price of crude oil and the Canadian WTI/WCS spread remained relatively flat with the fourth quarter of 2024. Industry refining margins improved versus the fourth quarter of 2024, reflecting changes in supply and demand balances.

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. Certain tariffs were paused for a period of time but have not been withdrawn. The global trade environment continues to be volatile. The likelihood of the United States, Canada or their trading partners resuming tariffs, imposing new or reciprocal tariffs, export restrictions, or other forms of trade-related sanctions is highly uncertain. Additionally, significant uncertainty exists as to what effects these actions will ultimately have on Imperial, its suppliers and its customers. The company continually monitors the global trade environment and works to mitigate potential impacts.

Operating results

First quarter 2025 vs. first quarter 2024

                                                                       First Quarter             
  millions of Canadian dollars, unless noted                                    2025       2024  
 ─────────────────────────────────────────────────────────────────────────────────────────────────
  Net income (loss) (U. S. GAAP)                                               1,288      1,195  
  Net income (loss) per common share, assuming dilution (dollars)               2.52       2.23  

Upstream

Net income (loss) factor analysis

millions of Canadian dollars

Price - Average bitumen realizations increased by $8.75 per barrel, primarily driven by the narrowing WTI/WCS spread. Synthetic crude oil realizations increased by $5.28 per barrel, primarily driven by an improved Synthetic/WTI spread.

Other - Primarily due to favourable foreign exchange impacts of about $130 million.

  IMPERIAL OIL LIMITED  

Marker prices and average realizations

                                                First Quarter             
  Canadian dollars, unless noted                         2025       2024  
 ──────────────────────────────────────────────────────────────────────────
  West Texas Intermediate (US$ per barrel)              71.42      76.86  
  Western Canada Select (US$ per barrel)                58.83      57.50  
  WTI/WCS Spread (US$ per barrel)                       12.59