Imperial Oil stock: Record profit meets lower output

Imperial Oil reported record third-quarter net income of CAD 2.454 billion on October 30, 2026, compared with CAD 539 million in the year-earlier quarter. The result was supported by stronger commodity prices and downstream margins, while lower production and refinery throughput kept operating reliability in focus. Imperial's October 30 earnings release said diluted earnings reached CAD 5.11 per share, versus CAD 1.07 a year earlier.

Refining Margins Drive Earnings

Downstream net income climbed to CAD 1.555 billion from CAD 444 million. Imperial attributed the improvement primarily to better market margins and a favorable product mix, with renewable diesel contributing to performance at the Strathcona refinery. Petroleum product sales increased to 474,000 barrels per day from 464,000 barrels per day as export sales rose.

Operating cash flow reached CAD 3.228 billion, up from CAD 1.798 billion in the third quarter of 2025. Imperial generated CAD 2.566 billion in free cash flow and returned CAD 2.506 billion to shareholders through CAD 420 million of dividends and CAD 2.086 billion of share repurchases.

Production And Throughput Fall

Gross upstream production averaged 418,000 oil-equivalent barrels per day, down from 462,000 a year earlier. Kearl production averaged 282,000 gross barrels per day, including 200,000 barrels attributable to Imperial, after a third-party pipeline outage caused a shutdown lasting several days. Cold Lake and Syncrude also recorded lower output after planned turnaround work.

Refinery throughput fell to 381,000 barrels per day from 425,000, while capacity utilization declined to 88 percent from 98 percent. Imperial cited unplanned downtime, the pipeline outage and planned turnaround work at Sarnia. The company now targets total gross Kearl production of 280,000 barrels per day in 2026, including 199,000 barrels attributable to Imperial.

Shareholder Returns And Outlook

Imperial declared a fourth-quarter dividend of 87 cents per share and said its accelerated normal course issuer bid is expected to be completed before year-end. Chief Executive John Whelan said the company had increased its cash balance to CAD 2.9 billion while funding capital spending, dividends and share repurchases, leaving it positioned to return additional surplus cash in the new year.

Imperial Oil stock traded at 113.95 euros on Lang & Schwarz at 13:13 CET on Thursday, November 12, 2026. No Xetra comparison is included because the available German market page showed no quoted price.

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