What changed in this filing

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Item 1. Financial Statements

2025-08-04 compared with 2025-05-05 · 135 added, 15 removed, 359 unchanged (29% of the section changed)

2 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2025 2024 2025 2024

5 unchanged sentences

Purchases of crude oil and products (b)

7,215 8,856 14,971 16,562

Production and manufacturing (c)

1,664 1,689 3,350 3,353

Selling and general (c)

251 221 510 467

Federal excise tax and fuel charge 372 656 964 1,247

8 unchanged sentences

Net income (loss) per common share - basic (note 9)

1.86 2.11 4.39 4.34

Net income (loss) per common share - diluted (note 9)

(a) Amounts from related parties included in revenues.

(b) Amounts to related parties included in purchases of crude oil and products.

1.86 2.11 4.38 4.34

(a) Amounts from related parties included in revenues (note 1) 4,121 3,657 6,995 7,074

(b) Amounts to related parties included in purchases of crude oil and products (note 1) 2,142 1,549 2,569 3,222

and general expenses.

130 135 294 285

(d) Amounts to related parties included in financing.

3 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2025 2024 2025 2024

49 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2025 2024 2025 2024

18 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2025 2024 2025 2024

4 unchanged sentences

(Gain) loss on asset sales (note 3)

( 1 ) ( 1 ) ( 11 ) ( 3 )

Deferred income taxes and other — ( 75 ) ( 31 ) ( 239 )

5 unchanged sentences

All other items - net (c)

( 13 ) ( 5 ) ( 31 ) ( 3 )

Cash flows from (used in) operating activities 1,465 1,629 2,992 2,705

2 unchanged sentences

Proceeds from asset sales (note 3)

Additional investments ( 4 ) — ( 4 ) —

Loans to equity companies - net 1 2 11 14

2 unchanged sentences

Finance lease obligations - reduction (note 6)

( 4 ) ( 8 ) ( 8 ) ( 13 )

Dividends paid ( 367 ) ( 321 ) ( 674 ) ( 599 )

4 unchanged sentences

Cash and cash equivalents at end of period (a)

2,386 2,020 2,386 2,020

(a) Cash equivalents are all highly liquid securities with maturity of three months or less.

5 unchanged sentences

Interest (paid), net of capitalization.

( 5 ) ( 15 ) ( 12 ) ( 26 )

The information in the notes to consolidated financial statements is an integral part of these statements.

7 unchanged sentences

The company’s exploration and production activities are accounted for under the “successful efforts” method.

The results for the three months ended March 31, 2025, are not necessarily indicative of the operations to be expected for the full year.

Amounts for related party revenues and purchases for the three months ended June 30, 2024 have been revised from $ 2,946 million to $ 3,657 million and from $ 838 million to $ 1,549 million, respectively.

Amounts for related party revenues and purchases for the six months ended June 30, 2024 have been revised from $ 5,675 million to $ 7,074 million and from $ 1,823 million to $ 3,222 million, respectively.

Impacts of the revision offset to zero.

The results for the six months ended June 30, 2025, are not necessarily indicative of the operations to be expected for the full year.

All amounts are in Canadian dollars unless otherwise indicated.

1 unchanged sentence

Business segments

Three Months to March 31

Second Quarter

Downstream (d)

7 unchanged sentences

( 4 ) 1 15 9 — —

Total revenues and other income 3,784 4,552 12,427 14,634 356 418

Exploration — 1 — — — —

Purchases of crude oil and products

1,369 1,900 10,952 12,944 240 256

Production and manufacturing 1,127 1,203 466 435 62 48

Selling and general — — 175 171 20 23

Federal excise tax and fuel charge — — 370 655 2 1

Depreciation and depletion 418 396 44 46 4 4

Non-service pension and postretirement benefit — — — — — —

Financing (note 5)

Total expenses 2,914 3,501 12,007 14,251 328 332

Income (loss) before income taxes 870 1,051 420 383 28 86

Income tax expense (benefit) 206 252 98 89 7 21

Net income (loss)

664 799 322 294 21 65

Cash flows from (used in) operating activities

1,021 1,162 641 384 ( 134 ) 74

Capital and exploration expenditures (c)

353 267 90 149 1 3

Second Quarter

Corporate and other

millions of Canadian dollars 2025 2024 2025 2024 2025 2024

Revenues and other income

Revenues (a) (b)

— — — — 11,208 13,348

Intersegment sales

— — ( 5,348 ) ( 6,246 ) — —

Investment and other income (note 3)

13 25 — — 24 35

Total revenues and other income 13 25 ( 5,348 ) ( 6,246 ) 11,232 13,383

Exploration — — — — — 1

17 unchanged sentences

29 43 — — 473 462

Total assets as at March 31

IMPERIAL OIL LIMITED

(a) Includes export sales to the United States of $ 1,915 million (2024 - $ 2,632 million).

(b) Revenues include both revenue within the scope of ASC 606 and outside the scope of ASC 606 .

Trade receivables in "Accounts receivable - net" reported on the Consolidated balance sheet include both receivables within the scope of ASC 606 and outside the scope of ASC 606 .

Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives.

Contractual terms, credit quality and type of customer are generally similar between contracts within the scope of ASC 606 and those outside it.

Revenues Second Quarter

millions of Canadian dollars 2025 2024

Revenue from contracts with customers 9,559 10,782

Revenue outside the scope of ASC 606

Total 11,208 13,348

(c) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions and the company’s share of similar costs for equity companies.

CAPEX excludes the purchase of carbon emission credits.

(d) In the second quarter of 2025, benzene and aromatic solvents are reported under the Downstream segment, whereas in the second quarter of 2024, they were reported under the Chemicals segment.

The company has determined that the impact of this change is not material;

therefore, the comparative period has not been recast.

IMPERIAL OIL LIMITED

Six Months to June 30

Downstream (d)

millions of Canadian dollars 2025 2024 2025 2024 2025 2024

Revenues and other income

Revenues (a) (b)

126 71 23,023 24,865 525 661

Three Months to March 31

Intersegment sales

8,106 8,644 3,387 3,387 203 175

Investment and other income (note 3)

10 5 36 21 — 1

Total revenues and other income 8,242 8,720 26,446 28,273 728 837

Exploration 2 2 — — — —

Purchases of crude oil and products

3,231 3,713 22,939 24,535 493 516

Production and manufacturing 2,303 2,391 923 856 113 101

Selling and general — — 349 333 42 49

Federal excise tax and fuel charge — — 961 1,245 3 2

Depreciation and depletion 888 828 89 91 8 8

Non-service pension and postretirement benefit — — — — — —

Financing (note 5)

( 12 ) 2 — — — —

Total expenses 6,412 6,936 25,261 27,060 659 676

Income (loss) before income taxes 1,830 1,784 1,185 1,213 69 161

Income tax expense (benefit) 435 427 279 288 17 39

Net income (loss)

1,395 1,357 906 925 52 122

Cash flows from (used in) operating activities

1,222 2,053 1,997 391 ( 75 ) 71

Capital and exploration expenditures (c)

619 557 178 302 4 8

Total assets as at June 30

29,387 28,505 11,784 12,016 519 503

Six Months to June 30

Corporate and other

7 unchanged sentences

29 42 — — 75 69

16 17 ( 6,348 ) ( 5,960 ) 12,517 12,283

Total revenues and other income 29 42 ( 11,696 ) ( 12,206 ) 23,749 25,666

Exploration — — — — 2 2

17 unchanged sentences

70 91 — — 871 958

Total assets as at March 31

Total assets as at June 30

4,510 3,528 ( 2,022 ) ( 417 ) 44,178 44,135

5 unchanged sentences

Contractual terms, credit quality and type of customer are generally similar between contracts within the scope of ASC 606 and those outside it.

Revenues Three Months

Revenues Six Months

millions of Canadian dollars 2025 2024

10 unchanged sentences

Investment and other income included gains and losses on asset sales as follows:

Second Quarter

millions of Canadian dollars 2025 2024 2025 2024

5 unchanged sentences

The components of net benefit cost were as follows:

Second Quarter

millions of Canadian dollars 2025 2024 2025 2024

13 unchanged sentences

Financing costs

Second Quarter

millions of Canadian dollars 2025 2024 2025 2024

22 unchanged sentences

In addition to the total operating lease liability, undiscounted commitments for leases not yet commenced totalled $ 51 million (2024 - $ 56 million).

In addition to the total operating lease liability, undiscounted commitments for leases not yet commenced totaled $ 48 million (2024 - $ 56 million).

IMPERIAL OIL LIMITED

3 unchanged sentences

There are no material differences between the fair value of the company’s financial instruments and the recorded carrying value.

At March 31, 2025 and December 31, 2024, the fair value of long-term debt ($ 3,447 million, excluding finance lease obligations) was primarily a level 2 measurement.

At June 30, 2025 and December 31, 2024, the fair value of long-term debt ($ 3,447 million, excluding finance lease obligations) was primarily a level 2 measurement.

Derivative instruments

10 unchanged sentences

Realized and unrealized gain/(loss) on derivative instruments recognized in the Consolidated statement of income is included in the following line on a before-tax basis:

Second Quarter

millions of Canadian dollars 2025 2024 2025 2024

2 unchanged sentences

The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement, were as follows:

At March 31, 2025

At June 30, 2025

millions of Canadian dollars

23 unchanged sentences

“Accounts payable and accrued liabilities” and “Other long-term obligations”.

At March 31, 2025 and December 31, 2024, the company had $ 22 million of collateral under a master netting arrangement not offset against the derivatives on the Consolidated balance sheet in “Accounts receivable - net”, primarily related to initial margin requirements.

At June 30, 2025 and December 31, 2024, the company had $ 14 million and $ 22 million, respectively, of collateral under a master netting arrangement not offset against the derivatives on the Consolidated balance sheet in “Accounts receivable - net”, primarily related to initial margin requirements.

IMPERIAL OIL LIMITED

3 unchanged sentences

Outstanding 509,045 509,045

The current 12-month normal course issuer bid program came into effect June 29, 2025 under which Imperial will continue its existing share purchase program.

The program enables the company to purchase up to a maximum of 25,452,248 common shares ( 5 percent of the total shares on June 15, 2025) which includes shares purchased under the normal course issuer bid from Exxon Mobil Corporation.

As in the past, Exxon Mobil Corporation has advised the company that it intends to participate to maintain its ownership percentage at approximately 69.6 percent.

Imperial plans to accelerate its share purchases under the normal course issuer bid program, and anticipates repurchasing all remaining allowable shares prior to year end.

Purchase plans may be modified at any time without prior notice.

The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of earnings reinvested.

The company’s common share activities are summarized below:

4 unchanged sentences

Purchases at stated value — —

Balance as at March 31, 2025

Balance as at June 30, 2025

The following table provides the calculation of basic and diluted earnings per common share and the dividends declared by the company on its outstanding common shares:

Second Quarter

2025 2024 2025 2024

Net income (loss) per common share – basic

Net income (loss) (millions of Canadian dollars)

949 1,133 2,237 2,328

Weighted-average number of common shares outstanding (millions of shares)

509.0 535.8 509.0 535.8

Net income (loss) per common share (dollars)

1.86 2.11 4.39 4.34

Net income (loss) per common share – diluted

Net income (loss) (millions of Canadian dollars)

949 1,133 2,237 2,328

Weighted-average number of common shares outstanding (millions of shares)

509.0 535.8 509.0 535.8

Effect of employee share-based awards (millions of shares)

1.3 1.2 1.2 1.2

Weighted-average number of common shares outstanding,

assuming dilution (millions of shares)

510.3 537.0 510.2 537.0

Net income (loss) per common share (dollars)

1.86 2.11 4.38 4.34

Dividends per common share – declared (dollars)

0.72 0.60 1.44 1.20

IMPERIAL OIL LIMITED

6 unchanged sentences

Amounts reclassified from accumulated other comprehensive income 10 25

Balance at March 31 ( 197 ) ( 661 )

Balance at June 30 ( 192 ) ( 648 )

Amounts reclassified out of accumulated other comprehensive income (loss) – before-tax income (expense):

Second Quarter

millions of Canadian dollars 2025 2024 2025 2024

1 unchanged sentence

included in net benefit cost (a)

( 7 ) ( 17 ) ( 13 ) ( 34 )

(a) This accumulated other comprehensive income component is included in the computation of net benefit cost (note 4).

Income tax expense (credit) for components of other comprehensive income (loss):

Second Quarter

millions of Canadian dollars 2025 2024 2025 2024

2 unchanged sentences

Amortization of postretirement benefits liability adjustment included in net benefit cost

Total 2 3 7 9

IMPERIAL OIL LIMITED

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements