Imperial Oil beats quarterly estimates as crude rally lifts profits

Total upstream production in the second quarter averaged 414,000 gross barrels of oil equivalent per day (boepd), down from 427,000 boepd a year earlier, reflecting lower output at Kearl and Syncrude.

Refinery throughput fell to 331,000 barrels per day from 376,000 bpd, while refinery utilization declined to 76% from 87%, primarily because of planned turnaround work at Strathcona and unplanned downtime.

Imperial lowered its 2026 refinery outlook, cutting expected throughput to 370,000-380,000 bpd from 395,000-405,000 bpd and expected utilization to 85%-88% from 91%-93%.

It cited unplanned downtime and a short-term rail logistics challenge at Strathcona that it expects to resolve by year end.

CEO John Whelan said on a conference call Friday he was optimistic about the potential for Canada's oil industry, given the recent signing of an agreement between the federal government and the province of Alberta aimed at creating policy conditions that will spur production growth.

"With a supportive fiscal and regulatory framework, Imperial has the potential to double our gross operated upstream production over time, with the development of our high-quality oil sands leases using our advantaged technology," Whelan said.

Whelan said the company expects strong volumes and performance in the second half of 2026 after completing its heaviest maintenance quarter.

July 31 (Reuters) - Canadian oil producer Imperial Oil more than doubled its second-quarter profit and beat Wall Street estimates on Friday, as a surge in crude prices helped offset lower oil sands output and the impact of planned refinery maintenance.