Imperial Oil Limited IMO reported first-quarter 2025 adjusted earnings per share of $1.75, which beat the Zacks Consensus Estimate of $1.52. Moreover, the bottom line increased from the year-ago quarter’s $1.65. This increase was due to strong performance in the upstream segment and higher bitumen price realizations. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Revenues of $8.7 billion missed the Zacks Consensus Estimate of $11.1 billion. The top line also decreased from the year-ago quarter’s level of $9.6 billion, primarily due to weak performance in the Chemical segment.
During the quarter, Imperial Oil returned C$307 million to its shareholders through dividend payments.
Calgary-based integrated oil and gas company announced a quarterly dividend of 72 Canadian cents per share on its outstanding common shares, payable on July 1, 2025, to shareholders of record as of June 4.
The company’s construction of Canada’s largest renewable diesel facility at the Strathcona refinery is progressing, with start-up scheduled for mid-2025.
Imperial Oil Limited Price, Consensus and EPS Surprise
Imperial Oil Limited Price, Consensus and EPS Surprise
Upstream: Revenues of C$4.5 billion increased from the prior-year level of C$4.2 billion. The figure also beat our expectation of C$4.3 billion. The segment reported a net income of C$731 million compared with C$558 million in the year-ago quarter. The figure beat our expectation of C$685.9 million.
The company recorded average upstream production of 418,000 gross oil-equivalent barrels per day in the first quarter, which decreased from the prior-year level of 421,000 gross oil-equivalent barrels per day. The figure also missed our expectation of 447,000 gross oil-equivalent barrels per day.
The company recorded total gross bitumen production at Kearl averaging 256,000 barrels per day (181,000 barrels Imperial's share), down from 277,000 barrels per day (196,000 barrels Imperial's share) in the first quarter of 2024. This decrease was primarily due to extreme cold weather and unplanned downtime, partially offset by improved winter operating procedures.
The company also posted gross bitumen production at Cold Lake, averaging 154,000 barrels per day, which was an increase from 142,000 barrels per day in the first quarter of 2024. This growth was primarily driven by the strong performance of the Grand Rapids solvent-assisted SAGD, partially offset by production and steam cycle timing.
The company noted that the Leming SAGD project is progressing as planned, with start-up targeted for late 2025 and peak production estimated at around 9,000 barrels per day.
IMO’s share of gross production from Syncrude averaged 73,000 barrels per day, unchanged from the first quarter of 2024.
Bitumen price realizations totaled C$75.31 per barrel compared with C$66.56 in the year-ago period. IMO received an average realized price of C$98.79 per barrel for synthetic oil compared with the prior-year quarter’s C$105.37. For conventional crude oil, it received C$42.73 per barrel compared with C$93.51 in the corresponding period of 2024.
Downstream: Revenues of C$14 billion increased from the prior-year level of C$13.6 billion. However, the figure missed our expectation of C$14.2 billion.
Net income totaled C$584 million compared with C$631 million in the year-ago period. However, the figure beat our expectation of C$231.4 million.
The company recorded petroleum product sales of 455,000 barrels per day, up from 450,000 barrels per day in the first quarter of 2024. The figure beat our expectation of 444,000 barrels per day. The refinery throughput in the first quarter averaged 397,000 bpd, down from the prior-year quarter’s level of 407,000 bpd. Moreover, the figure missed our estimate of 415,000 bpd. The company recorded lower refinery throughput, primarily due to increased maintenance activities at its eastern manufacturing hub. The capacity utilization of 91% was down from the year-ago level of 94%. The figure also missed our estimate.
Chemical: Revenues of C$372 million decreased from C$419 million in the first quarter of 2024. Moreover, the figure missed our prediction of C$374.4 million.
Net income totaled C$31 million compared with C$57 million in the year-ago period. Moreover, the figure missed our expectation of C$41.6 million.
IMO’s Total Costs & Capex
Total expenses of C$10.8 billion increased from the year-ago quarter’s C$10.7 billion. However, the figure was down from our prediction of C$13.4 billion.
In the quarter under review, IMO’s capital and exploration expenditures totaled C$398 million, down from the year-ago quarter’s C$496 million.
Financial Performance for IMO
Cash flow from operating activities was C$1.5 billion compared with C$1.1 billion in the year-ago quarter.
As of March 31, Imperial Oil had cash and cash equivalents of C$1.8 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 14%.
IMO’s Outlook
IMO already disclosed a 2025 capital spending budget of C$1.9 billion to C$2.1 billion. This Zacks Rank #3 (Hold) company expects total Upstream production in the range of 433,000-456,000 gross oil-equivalent barrels per day.
For the full year, production is anticipated to be between 280,000 barrels per day (bbl/d) and 290,000 bbl/d at Kearl, 150,000 bbl/d to 160,000 bbl/d at Cold Lake and 75,000 bbl/d to 80,000 bbl/d at Syncrude.
In the Downstream segment, throughput is estimated to average 405,000 bbl/d to 415,000 bbl/d, supported by a utilization rate of 94% to 96%. Although all refineries are scheduled for turnarounds in 2025, the company expects these activities to have a lower impact on both throughput and costs compared with 2024.
Additionally, the Strathcona renewable diesel project remains on schedule for a mid-2025 startup. Planned maintenance is expected to reduce volumes by approximately 9,000 bbl/d at the K2 train and 3,000 bbl/d at the Mahkeses plant over the course of the year.
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Important Earnings at a Glance
While we have discussed IMO’s first-quarter results in detail, let us take a look at three other key reports in this space.
Oil and gas equipment and services provider, Liberty Energy LBRT, reported a first-quarter 2025 adjusted net income of 4 cents per share, which marginally beat the Zacks Consensus Estimate of 3 cents. Liberty's outperformance indicated operational efficiencies as well as increased utilization of frac and wireline fleets. However, the bottom line underperformed the year-ago quarter’s reported figure of 48 cents due to a decline in service activity.
As of March 31, Liberty had approximately $24.1 million in cash and cash equivalents. The pressure pumper’s long-term debt of $210 million represented a debt-to-capitalization of 9.6%.
Another oil and gas equipment and services provider, Halliburton Company HAL, posted first-quarter 2025 adjusted net income per share of 60 cents. The figure met with the Zacks Consensus Estimate but was down from the year-ago quarter’s profit of 76 cents (adjusted). The numbers reflect softer activity in the region of North America, partly offset by international growth. Meanwhile, Halliburton’s revenues of $5.4 billion decreased 6.7% year over year but beat the Zacks Consensus Estimate of $5.3 billion.
As of March 31, 2025, Halliburton had approximately $1.8 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.8.
Houston, TX-based oil and gas equipment and services provider, Baker Hughes BKR, reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents.
As of March 31, 2025, Baker had cash and cash equivalents of $3,277 million. Baker had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.
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