Company: IMO
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0000049938-25-000045
Chunk: 2

Company: IMPERIAL OIL LTD
Filing Date: 2025-08-04
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 second quarter of 2025, the price of crude oil decreased relative to first quarter of 2025, while the Canadian WTI/WCS spread narrowed due to low inventory levels. Industry refining margins improved in the second quarter of 2025, driven by strong seasonal demand.

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 Certain tariffs were paused for a period of time but have not been withdrawn, while others have been revised. The global trade environment continues to be volatile. The likelihood of the United States, Canada or their trading partners resuming tariffs, imposing new or revised 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

Second quarter 2025 vs. second quarter 2024

                                                                       Second Quarter             
  millions of Canadian dollars, unless noted                                     2025       2024  
 ──────────────────────────────────────────────────────────────────────────────────────────────────
  Net income (loss) (U. S. GAAP)                                                  949      1,133  
  Net income (loss) per common share, assuming dilution (dollars)                1.86       2.11  

Upstream

Net income (loss) factor analysis

millions of Canadian dollars

Price - Average bitumen realizations decreased by $17.20 per barrel, primarily driven by lower marker prices. Synthetic crude oil realizations decreased by $23.71 per barrel, primarily driven by lower WTI and a weaker Synthetic/WTI spread.

Volumes - Higher volumes were primarily driven by the timing of the annual coker turnaround at Syncrude and mine productivity and improved reliability at Kearl.

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

  IMPERIAL OIL LIMITED  

Marker prices and average realizations

                                                Second Quarter              
  Canadian dollars, unless noted                          2025        2024  
 ────────────────────────────────────────────────────────────────────────────
  West Texas Intermediate (US$ per barrel)               63.69       80.63  
  Western