Imperial Oil Limited reported first‑quarter 2026 results on May 1 2026, delivering net income of $940 million and earnings per share of $1.94. Revenue reached $12.45 billion, a $0.37 billion beat over the consensus estimate of $12.08 billion. The quarter’s performance represents a sequential decline from the fourth quarter of 2025, when the company posted net income of $492 million and EPS of $1.00, and a year‑over‑year drop from the first quarter of 2025, which saw net income of $1.28 billion and EPS of $2.52.
Upstream production averaged 419,000 barrels per day, with Kearl contributing 183,000 barrels and Cold Lake 155,000 barrels. The upstream segment generated $731 million in net income, while the downstream segment produced $584 million. Bitumen realizations fell $7.10 per barrel, and refinery throughput was reduced by unplanned downtime, including a coker outage at Syncrude that disrupted synthetic crude feedstock.
The EPS miss was largely driven by a $143 million after‑tax incentive compensation charge, a mark‑to‑market expense linked to a historic share‑price increase of almost $65, or more than 50%, during the quarter. The charge was compounded by unfavorable upstream realizations based on lower average prices across the period, which offset the gains from strong production volumes.
Revenue beat expectations because upstream production remained robust, with the company reporting the second‑highest first‑quarter crude output in its history, just 1,000 barrels per day below the all‑time record set in 2024. However, downstream throughput lagged due to operational disruptions, which narrowed overall margins and contributed to the EPS miss.
John Whelan, Chairman, President and CEO, said, "Against a backdrop of significant volatility in global commodity markets, we remain committed to our long‑standing corporate strategy of maximizing the value of our existing assets while progressing advantaged growth opportunities." Peter Shaw, Vice President of Investor Relations, explained, "Starting with financial results for the first quarter, we recorded net income of CAD 940 million, down CAD 348 million from the first quarter of 2025, primarily driven by higher incentive compensation charges as a result of our higher share price and unfavorable upstream realizations based on lower average prices across the quarter." He added, "Elaborating on the incentive compensation item, the total charge in the quarter was CAD 143 million after tax. This mark‑to‑market charge was driven by a historic share price increase of almost CAD 65 over 50% in the quarter."
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