Imperial Oil posts record C$2.454 billion net income in third quarter
Key Facts
Imperial Oil reported record net income of C$2.454 billion on Oct. 30, 2026, in the third quarter, and diluted earnings of C$5.11 per share. Adjusted earnings per share were above the average analyst estimate of C$4.70, according to Reuters. Net income rose from C$539 million in the third quarter of 2025, according to company data. It also increased from C$2.190 billion in the second quarter of 2026, which the company attributed mainly to higher commodity prices and increased downstream volumes. The results therefore centered on record earnings and a beat on estimates, rather than describing the share move as reaching a new price peak.
Refining was the leading driver of the year-over-year result, with downstream earnings rising to C$1.56 billion from C$444 million in the same period a year earlier. Reuters attributed the increase to improved refining margins and a more favorable product mix. The company said industry refining margins improved in the third quarter compared with the second quarter of 2026, despite crude prices falling from their level in the previous quarter. From July to September, Brent crude averaged about $89.27 per barrel, up more than 31% year over year, according to Reuters. The company also said global supply disruptions continued to increase price volatility, heavy crude differentials and refining margins.
The jump in refining earnings came as refinery crude throughput fell to 381,000 barrels per day in the third quarter, from 425,000 a year earlier. Reuters said the decline was linked to unplanned outages, a third-party pipeline disruption and planned maintenance. Upstream production averaged 418,000 barrels of oil equivalent per day, compared with 462,000 in the third quarter of 2025. Imperial lowered its 2026 total production target for the Kearl oil sands mine to 280,000 barrels per day because of third-party disruptions. These figures highlight diverging operating performance: much higher refining earnings alongside refinery throughput and production below year-earlier levels.
Cash flow from operating activities rose to C$3.228 billion in the third quarter, compared with C$1.798 billion in the same period of 2025. Operating cash flow was C$2.957 billion excluding the impact of working capital, the company said. Imperial returned a total of C$2.506 billion to shareholders during the quarter. That included C$420 million in dividends and C$2.086 billion in share repurchases. The company also declared a quarterly dividend of 87 cents per share for the fourth quarter of 2026.
Chief Executive John Whelan said the company was on track to complete its share repurchase program before year-end. He added: "We are on track to complete our program before year-end and well positioned to return additional excess cash to shareholders in the new year." This follows the dividends and buybacks the company carried out during the quarter, as well as the quarterly dividend it declared for the fourth quarter. Imperial also said work to remove rail transportation bottlenecks at its Strathcona refinery was progressing. The project is intended to enable the processing of larger volumes of crude as canola volumes continue to grow, and the company expects it to improve refinery capacity utilization by year-end.
The company also attributed improved downstream performance to its investment in the renewable diesel facility at the Strathcona refinery, which supplied low-carbon renewable fuel to Canadian markets. Imperial lists Jan. 29, 2027, as the expected date for reporting fourth-quarter 2026 results. Those results are expected to provide a subsequent reading on the company's performance after it reported record third-quarter earnings and outlined anticipated progress in utilizing Strathcona's capacity. They will also follow the period for which the company declared a quarterly dividend of 87 cents per share. Completion of the share repurchase program, according to the chief executive, is tied to the end of this year.