Imperial Oil (IMO) Q3 2024 earnings summary

Executive summary

• Achieved strong operational performance across all assets, offsetting lower commodity prices sequentially from Q2 2024.

• Net income for Q3 2024 was $1,237 million, up sequentially from Q2 but down year-over-year.

• Upstream production reached 447,000 boe/d, the highest Q3 in over 30 years, driven by Grand Rapids ramp-up and strong Kearl and Cold Lake output.

• Downstream business remained profitable despite significant turnaround activity and lower crack spreads, with refinery utilization at 90%.

• Returned $1,528 million to shareholders via $322 million in dividends and $1,206 million in accelerated share repurchases.

Financial highlights

• Q3 2024 net income: $1,237 million ($2.33/share diluted), down $364 million year-over-year due to lower downstream margins.

• Cash from operating activities (excluding working capital): $1,797 million.

• Upstream earnings: $1,027 million, up $228 million sequentially, driven by higher volumes and lower OpEx.

• Downstream earnings: $205 million, down $89 million sequentially, reflecting lower refining margins.

• Capital expenditures: $486 million in Q3, up $99 million year-over-year; YTD CapEx $1,444 million.

Outlook and guidance

• Confident in achieving 280,000 bpd annual production at Kearl; strong momentum into Q4.

• Expect to finish 2024 with CapEx modestly above $1.7 billion guidance, likely between $1.8–$1.9 billion.

• All planned turnaround activity completed by October, positioning for a strong year-end.

• Grand Rapids project expected to support long-term production growth, lower unit cash costs, and reduce GHG intensity.

• Strathcona renewable diesel facility construction continues, targeting over one billion litres annual capacity.