Imperial Oil beats quarterly profit estimates as crude rally lifts earnings
IMO•Net income rises sharply
Imperial reported net income of C$2.19 billion, up from last year's C$949 million, with per-share profit of C$4.52 beating the average estimate of C$4.13, according to LSEG-compiled data.
Quarterly profit tops estimates as crude prices rise
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.
Earlier this week, peer Cenovus Energy also posted a sharp jump in quarterly profit and raised its production outlook, with higher crude prices buoying Canada's oil sands sector despite maintenance-related output constraints.
Geopolitical tensions in the Middle East and supply uncertainty lifted oil prices during the quarter, while global fuel supply disruptions improved refining margins across the industry.
Higher benchmark crude prices boosted Imperial's realized prices, with synthetic crude realizations jumping more than 60% year-over-year and Western Canada Select prices rising about 45%, helping offset lower production volumes.
Production and refinery output were lower, outlook cut
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.
Chief Executive John Whelan said the company expects strong volumes and performance in the second half of 2026 after completing its heaviest maintenance quarter.
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.
