Summary
Imperial Oil Ltd. reported its first quarter 2026 results, showing a decline in net income to C$940 million (C$1.94 per diluted share) from C$1.288 billion (C$2.52 per diluted share) in the first quarter of 2025. This decrease was primarily driven by lower earnings in the Upstream segment, influenced by a wider WTI/WCS spread and unfavorable foreign exchange impacts. While total revenues remained relatively stable at C$12.45 billion, operating cash flows saw a significant reduction to C$756 million from C$1.527 billion year-over-year, largely due to lower earnings and unfavorable working capital movements. The company's balance sheet showed an increase in total assets to C$45.45 billion from C$42.31 billion at the end of 2025, with a notable increase in accounts receivable. Long-term debt remained stable. Imperial Oil continues to focus on capital discipline, with additions to property, plant, and equipment remaining a key investment area. The company anticipates renewing its normal course issuer bid in June 2026, signaling continued commitment to returning capital to shareholders.
Key Highlights
- 1Net income for Q1 2026 decreased to C$940 million from C$1.288 billion in Q1 2025, reflecting a 26.9% decline.
- 2Diluted earnings per share (EPS) fell to C$1.94 in Q1 2026 from C$2.52 in Q1 2025.
- 3Total revenues were largely stable at C$12.45 billion in Q1 2026 compared to C$12.52 billion in Q1 2025.
- 4Cash flows from operating activities significantly decreased to C$756 million in Q1 2026 from C$1.527 billion in Q1 2025.
- 5Additions to property, plant, and equipment increased to C$475 million in Q1 2026 from C$398 million in Q1 2025.
- 6The company plans to renew its normal course issuer bid in June 2026, indicating ongoing shareholder return strategies.
- 7The Upstream segment experienced lower net income due to a wider WTI/WCS spread and unfavorable foreign exchange impacts.