Imperial Oil (IMO) Q4 2024 earnings summary

Executive summary

• Q4 2024 net income was CAD 1,225 million, or $2.37 per diluted share, down from Q4 2023 due to lower commodity prices and realizations, offset by record upstream production and high downstream reliability.

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

• Upstream production hit 460,000 boe/d in Q4, the highest in 30 years (adjusted for XTO divestment), and annual production reached 433,000 boe/d.

• Downstream utilization was strong at 95% in Q4 and 92% for the year, at the top end of guidance.

• Returned nearly CAD 3.9 billion to shareholders in 2024 through buybacks and dividends, including a 20% dividend increase to CAD 0.72/share.

Financial highlights

• Q4 revenues were $12,607 million, with net income of CAD 1,225 million and total expenses of $11,032 million.

• Cash from operating activities in Q4 was $1,789 million, with nearly $1 billion cash on hand at year-end.

• Capital expenditures in Q4 were $423 million; full-year CapEx totaled $1,867 million.

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

• Upstream earnings in Q4 were CAD 878 million, downstream earnings CAD 356 million, and chemical earnings CAD 21 million.

Outlook and guidance

• 2025 outlook supported by continued production growth, cost reductions, and lighter downstream turnaround activity.

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

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

• Focus remains on optimizing assets, lowering unit cash costs, and maximizing shareholder value.

• Confident in achieving new volume and unit cash cost targets outlined in recent guidance.