Imperial Oil (IMO) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was CAD 1,288 million, up 13% year-over-year and 6% sequentially, with diluted EPS rising to $2.52 from $2.23, marking the highest-ever Q1 earnings.

• Free cash flow reached CAD 1,150 million, and cash flows from operating activities increased to $1,527 million from $1,076 million year-over-year.

• Announced leadership transition: John Whelan to succeed Brad Corson as CEO and Chairman in May 2025.

• Upstream benefited from higher bitumen and synthetic crude realizations, aided by a narrower WTI/WCS spread and favorable FX impacts.

• Downstream saw improved industry refining margins, though throughput declined due to maintenance.

Financial highlights

• Total revenues for Q1 2025 were $12,517 million, up from $12,283 million in Q1 2024.

• Operating income before taxes was $1,688 million, up from $1,572 million year-over-year.

• Capital and exploration expenditures totaled $398 million, down from $496 million year-over-year.

• Cash and cash equivalents at March 31, 2025, were $1,764 million, up from $979 million at year-end 2024.

• Dividends per share increased to $0.72 from $0.60 year-over-year; $307 million paid in Q1 2025.

Outlook and guidance

• Full-year outlook remains consistent with previous guidance.

• Construction of the Strathcona renewable diesel project is on track for mid-2025 startup.

• Leming SAGD redevelopment project expected to start up in late 2025, with peak production at 9,000 bpd.

• Continued focus on cost reduction and production growth at Kearl, Cold Lake, and Syncrude.

• Intention to renew normal course issuer bid for share buybacks in June 2025.