Imperial Oil beats quarterly estimates as crude rally lifts profits (updated)

Imperial Oil

31/07/2026 13:19

Output at Kearl and Syncrude declined, dragging upstream production to 414,000 boepd
Imperial cut 2026 throughput guidance to 370,000-380,000 bpd after Strathcona disruptions
John Whelan says federal-Alberta pact could support long-term oil sands growth
Updates after conference call; adds bylines and bullets; adds quote in paragraphs 5-6
By Dharna  Bafna and Amanda Stephenson
July 31 (Reuters) - Canadian oil producer Imperial Oil IMO.TO 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 CVE.TO 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 Exxon-owned 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.
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.
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. 
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.
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.
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.

 (Reporting by Dharna Bafna in Bengaluru and Amanda Stephenson in Calgary; Editing by Vijay Kishore and David Gregorio)
 ((amanda.stephenson@thomsonreuters.com))