Thursday after the bell, Imperial Oil Ltd. (IMO.TO) reported a sharp decline in profit for the third quarter compared to the year-ago period due to lower crude oil and natural gas prices.
Imperial's profit fell 61% to C$547 million from C$1.38 billion in the year-ago period. On a per share basis, net income decreased to C$0.64 from C$1.57. Operating revenues declined to C$5.54 billion from C$9.47 billion.
Segment-wise, upstream revenue declined to C$921 million from C$1.69 billion due to lower crude oil and natural gas prices. Upstream income declined to C$439 million from C$999 million with lower crude oil and natural gas prices; partially offset by lower royalty costs, lower energy costs and a lower Canadian dollar.
Downstream revenues dipped to C$4.38 billion from C$7.39 billion with reduced demand for products, resulting in lower overall downstream margins. Downstream net income fell to $62 million from $270 million in the prior-year period with lower demand and lower operating margins. North American refining margins were negatively impacted by Hurricane Gustav and lower sales volumes with the economic slowdown.
Revenue from chemical unit plunged to C$246 million from C$393 million.
Imperial's gross oil-equivalent barrels of production declined slightly to an average of 304,000 barrels a day from 310,000 barrels a day in the year-ago period. Gross production of conventional crude oil was flat at an average of 25,000 barrels a day in the third quarter; almost the same as production in the year-earlier quarter. Gross production of natural gas decreased to 291 million cubic feet a day from 309 million cubic feet in the year-ago period due to a natural reservoir decline.
Average price of Brent crude oil in U.S. Dollars declined 41% to $68.29 a barrel from the year-ago quarter. Imperial's realizations on sales of Canadian conventional crude oil decreasing 43% this quarter from the same period last year; mirroring the trend in world prices.
The company's average realizations for natural gas averaged C$2.90 a thousand cubic feet, down from C$9.20 in the year-ago period.
In the third quarter, capital and exploration expenditures increased 60% to C$575 million from C$360 million in year-earlier quarter.
For the nine-month period, Imperial's profit fell to C$1.045 billion or C$1.22 per share from C$3.218 billion or C$3.60 per share. Operating revenues declined to C$15.46 billion from C$25.32 billion in the prior-year quarter.
IMO.TO closed Thursday's regular trading session at C$40.23, up C$0.22, on the Toronto Stock Exchange.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.