Imperial Oil Q3 Earnings Beat, Revenues Miss Estimates, Both Down Y/Y

Imperial Oil Limited IMO reported third-quarter 2025 adjusted earnings per share of $1.57, which beat the Zacks Consensus Estimate of $1.44. However, the bottom line decreased from the year-ago quarter’s $1.71. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.

Revenues of $8.8 billion missed the Zacks Consensus Estimate of $11.1 billion. The top line also decreased from the year-ago quarter’s level of $9.7 billion due to weak performance in both the Upstream and Downstream segments.

Imperial Oil Limited Price, Consensus and EPS Surprise

Imperial Oil Limited price-consensus-eps-surprise-chart | Imperial Oil Limited Quote

During the quarter, Imperial Oil returned C$366 million to its shareholders through dividend payments.

The Calgary-based integrated oil and gas company announced a quarterly dividend of 72 Canadian cents per share on its outstanding common shares, payable on Jan. 1, 2026, to its shareholders of record as of Dec. 3, 2025.

During the quarter, IMO announced restructuring plans to streamline operations by centralizing more corporate and technical functions in global centers, aiming to increase cash flow and deliver industry-leading shareholder returns.

IMO’s Segmental Information

Upstream: Revenues of C$4.1 billion decreased from the prior-year level of C$4.6 billion. The figure also missed our expectation of C$5.1 billion. The segment reported a net income of C$728 million compared with C$1 billion in the year-ago quarter. Moreover, the figure missed our expectation of C$731.7 million.

The company recorded average upstream production of 462,000 gross oil-equivalent barrels per day (boe/d) in the third quarter, which increased from the prior-year level of 447,000 boe/d. The figure also beat our expectation of 450,000 boe/d.

IMO recorded total gross bitumen production at Kearl averaging 316,000 barrels per day (224,000 barrels Imperial Oil's share), up from 295,000 barrels per day (209,000 barrels Imperial Oil's share) in the third quarter of 2024. This increase was primarily driven by improved reliability and recovery.

The company also posted gross bitumen production at Cold Lake, averaging 150,000 barrels per day (bpd), which was an increase from 147,000 bpd in the third quarter of 2024.

Imperial Oil noted that the first oil from the Leming SAGD project is anticipated in the coming weeks, with production expected to ramp up to a peak of around 9,000 bpd.

IMO’s share of gross production from Syncrude averaged 78,000 bpd, down from 81,000 bpd in the third quarter of 2024.

Bitumen price realizations totaled C$68.22 per barrel compared with C$77.24 in the year-ago period. IMO received an average realized price of C$91.12 per barrel for synthetic oil compared with the prior-year quarter’s C$104.41. For conventional crude oil, it received C$41.24 per barrel compared with C$60.91 in the corresponding period of 2024.

Downstream: Revenues of C$13.2 billion decreased from the prior-year level of C$14.6 billion. Moreover, the figure missed our expectation of C$13.6 billion.

Net income totaled C$444 million compared with C$205 million in the year-ago period. The figure also beat our expectation of C$147.4 million.

The company recorded petroleum product sales of 464,000 bpd, compared to 487,000 bpd in the third quarter of 2024. The figure also missed our expectation of 486,000 bpd. The refinery throughput in the third quarter averaged 425,000 bpd, up from the prior-year quarter’s level of 389,000 bpd. However, the figure missed our estimate of 434,000 bpd. Imperial Oil recorded higher refinery throughput, primarily due to lower turnaround impacts. The capacity utilization of 98% was up from the year-ago level of 90%. The figure also missed our estimate.

Chemical: Revenues of C$343 million increased from C$255 million in the third quarter of 2024. Moreover, the figure beat our prediction of C$263.1 million.

Net income totaled C$21 million compared with C$28 million in the year-ago period. However, the figure beat our expectation of C$13.7 million.

IMO’s Total Costs & Capex

Total expenses of C$11.3 billion decreased from the year-ago quarter’s C$11.7 billion. Moreover, the figure was down from our prediction of C$12.4 billion.

In the quarter under review, this Zacks Rank #3 (Hold) company’s capital and exploration expenditures totaled C$505 million, up from the year-ago quarter’s C$486 million.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Financial Performance for IMO

Cash flow from operating activities was C$1.8 billion compared with C$1.5 billion in the year-ago quarter.

As of Sept. 30, Imperial Oil had cash and cash equivalents of C$1.9 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 14.4%.

Important Earnings at a Glance

While we have discussed IMO’s third-quarter results in detail, let us take a look at three other key reports in this space.

San Antonio-based Valero Energy Corporation VLO, a leading independent refiner and marketer of transportation fuels and petrochemical products, reported third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16 per share. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.

The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.

Switzerland-based offshore drilling company Transocean Ltd. RIG reported third-quarter 2025 adjusted earnings of 6 cents per share, beating the Zacks Consensus Estimate of 4 cents. The bottom line also improved from the year-ago period’s breakeven earnings. This improvement can be attributed to a strong third-quarter result from the company's segments.

RIG’s total adjusted revenues of $1 billion beat the Zacks Consensus Estimate by $21 million. The top line also increased 8.4% from the prior-year figure of $948 million. This was fueled by higher revenues associated with improved rig utilization, improved revenue efficiency and an increase in day rate for one rig. Ultra-deepwater and harsh environment revenues beat the consensus mark of $684 million and $265 million, respectively.

The oil and gas drilling company spent $11 million on capital investments in the third quarter. Cash provided by operating activities was $246 million. Cash and cash equivalents were $833 million as of Sept. 30, 2025. Long-term debt amounted to $4.8 billion, with a debt-to-capitalization of 37.5% as of the same period.

Newcastle & Houston-based oil and gas equipment and services provider, TechnipFMC plc FTI, reported third-quarter 2025 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 65 cents. The bottom line also topped the year-ago quarter’s reported profit of 64 cents. The outperformance is primarily driven by strong results in the Subsea segment.

The company’s revenues of $2.6 billion beat the Zacks Consensus Estimate by 1.2%. Moreover, the top line increased from the year-ago quarter’s reported figure of $2.3 billion.

As of Sept. 30, FTI had cash and cash equivalents worth $876.6 million and long-term debt of $404.1 million, with a debt-to-capitalization of 10.8%.

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