Imperial Oil, one of Canada's largest integrated oil companies, reported a decline in its first-quarter profit for 2026, missing analyst expectations amid challenging market conditions. The Calgary-based company announced net income of $1.2 billion for the three months ended March 31, down from $1.5 billion in the same period last year. Earnings per share fell to $2.15 from $2.70, below the consensus estimate of $2.30 per share.
Factors Behind the Decline
The lower profit was primarily attributed to weaker refining margins, reduced crude oil production, and higher operating expenses. Imperial Oil's upstream production averaged 420,000 barrels of oil equivalent per day, a 5% decrease from the previous year, mainly due to planned maintenance at its Kearl oil sands facility. The company's downstream segment also faced headwinds, with refinery throughput declining to 390,000 barrels per day from 410,000 barrels per day.
Market Conditions and Outlook
Imperial Oil CEO Brad Corson noted that the company is navigating a volatile pricing environment, with West Texas Intermediate crude averaging $72 per barrel in the quarter, down from $78 a year earlier. Despite the challenges, Corson expressed confidence in the company's long-term strategy, emphasizing cost management and operational efficiency. The company reaffirmed its full-year capital spending plan of $1.8 billion, focusing on sustaining production and advancing growth projects.
Imperial Oil also highlighted progress on its renewable diesel project at the Strathcona refinery, which is expected to commence production in 2027. The company continues to prioritize shareholder returns, declaring a quarterly dividend of $0.50 per share, unchanged from the previous quarter.
