In This Article:
-
Earnings: $1,288 million, highest ever first-quarter earnings.
-
Earnings Per Share: Increased by 13% year over year and 6% sequentially.
-
Free Cash Flow: $1,150 million.
-
Cash on Hand: Nearly $1,800 million.
-
Cash from Operating Activities: $1,760 million, excluding working capital impacts.
-
Upstream Production: 418,000 gross oil equivalent barrels per day.
-
Refinery Throughput: 397,000 barrels per day, 91% utilization.
-
Petroleum Product Sales: 455,000 barrels per day.
-
Dividends Paid: $307 million.
-
Net Income: $1,288 million, up $93 million from Q1 2024.
-
Upstream Earnings: $731 million, down $147 million sequentially.
-
Downstream Earnings: $584 million, up $228 million sequentially.
-
Chemical Business Earnings: $31 million, up $10 million sequentially.
-
Capital Expenditures: $398 million, $100 million lower than Q1 2024.
-
Second-Quarter Dividend: $0.72 per share.
Release Date: May 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Imperial Oil Ltd (IMO) reported its highest ever first-quarter earnings of $1,288 million, marking a 13% year-over-year increase in earnings per share.
-
The company generated a strong free cash flow of $1,150 million and ended the quarter with nearly $1,800 million of cash on hand.
-
Upstream production was solid at 418,000 gross oil equivalent barrels per day, supported by higher year-over-year production at Cold Lake.
-
The downstream business delivered strong margin capture in a recovering crack spread environment, benefiting from structural advantages.
-
The renewable diesel project at the Strathcona refinery is on track to start up mid-2025, indicating progress in sustainable initiatives.
Negative Points
-
Upstream earnings of $731 million were down $147 million from the fourth quarter due to lower volumes.
-
Kearl's production was impacted by extreme weather conditions in February, resulting in lower volumes compared to previous quarters.
-
Syncrude production faced unplanned downtime, affecting output and requiring the use of interconnect pipelines to maintain upgrader operations.
-
Refinery throughput was lower at 397,000 barrels per day, reflecting additional maintenance activities.
-
Chemical business earnings were down $26 million compared to the first quarter of 2024, primarily due to lower margins.
Q & A Highlights
Q: Can you elaborate on the strong downstream performance and margin capture in the first quarter? A: Bradley Corson, CEO, highlighted the structural advantages in Canada, which contributed to the success. Scott Maloney, VP of Downstream, added that leveraging structural advantages allowed them to place barrels in high uplift opportunities across Canada. Volatility in the marketplace and maintenance activities also contributed to the strong margins.