Imperial Oil (IMO) Q4 2024 earnings summary

Executive summary

• Achieved strong operational performance in Q4 2024, offsetting lower commodity prices with record upstream production and high downstream reliability.

• Q4 2024 net income was $1,225 million, or $2.37 per diluted share, down from $1,365 million in Q4 2023, mainly due to lower realizations, partially offset by higher production and strong downstream performance.

• Full-year 2024 net income totaled $4,790 million, with the second highest annual EPS at CAD 9.03.

• Returned nearly $3.9 billion to shareholders in 2024, including a record 20% dividend increase to $0.72 per share for Q1 2025.

• Cash flows from operating activities reached $1,789 million in Q4 and $5,981 million for the year.

Financial highlights

• Q4 2024 net income was CAD 1,225 million, down CAD 140 million year-over-year due to lower downstream margins, partially offset by higher upstream production.

• Q4 revenues were $12,607 million, with total expenses of $11,032 million.

• Q4 capital and exploration expenditures were $423 million; full-year CapEx at CAD 1,867 million.

• Q4 free cash flow was $1,385 million; full-year free cash flow was $4,156 million.

• Total assets at year-end were $42,938 million; total debt was $4,011 million.

Outlook and guidance

• 2025 outlook supported by upstream production growth, strong downstream utilization, and continued expense reduction focus.

• Guidance targets further reductions in unit cash costs at Kearl (to $18/bbl) and Cold Lake (to $13/bbl), with continued production growth.

• Strathcona renewable diesel project on track for mid-2025 startup, with positive cash flow expected in H2 2025.

• Leming SAGD redevelopment project on track for late 2025 start-up, with peak production of ~9,000 barrels/day anticipated.