Company: IMO
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0000049938-25-000028
Chunk: 1

Company: IMPERIAL OIL LTD
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 1
Chunk 1
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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 March 31, 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                                   5,699                        4,260  
  Products                  ( 1,281)                 ( 371)                   

Realized and unrealized gain/(loss) on derivative instruments recognized in the Consolidated statement of income is included in the following line on a before-tax basis:

                                    Three Months                       
                                    to March 31                        
  millions of Canadian dollars                        2025       2024  
 ───────────────────────────────────────────────────────────────────────
  Revenues                                              15      ( 24)  

  IMPERIAL OIL LIMITED  

The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement, were as follows:

  At March 31, 2025                                                                                                                                                                                                                                                         
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