What changed in this filing

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Item 1. Financial Statements

2026-08-03 compared with 2026-05-04 · 136 added, 17 removed, 375 unchanged (29% of the section changed)

2 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2026 2025 2026 2025

5 unchanged sentences

Purchases of crude oil and products (b)

10,641 7,215 18,819 14,971

Production and manufacturing (c)

1,819 1,664 3,573 3,350

Selling and general (c) (note 11)

144 251 541 510

Federal excise tax and fuel charge 70 372 418 964

Depreciation and depletion (includes impairments)

511 478 1,031 1,009

Non-service pension and postretirement benefit 2 6 5 11

6 unchanged sentences

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

4.53 1.86 6.47 4.39

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

(a) Amounts from related parties included in revenues (note 1)

(b) Amounts to related parties included in purchases of crude oil and products (note 1)

4.52 1.86 6.46 4.38

(a) Amounts from related parties included in revenues.

5,186 3,342 8,846 6,995

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

1,895 1,363 3,145 2,569

and general expenses.

164 130 319 294

(d) Amounts to related parties included in financing.

3 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2026 2025 2026 2025

51 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2026 2025 2026 2025

18 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars 2026 2025 2026 2025

3 unchanged sentences

Depreciation and depletion (includes impairments)

511 478 1,031 1,009

(Gain) loss on asset sales (note 3)

( 56 ) ( 1 ) ( 64 ) ( 11 )

Deferred income taxes and other ( 40 ) — ( 386 ) ( 31 )

5 unchanged sentences

All other items - net (c)

( 83 ) ( 13 ) 50 ( 31 )

Cash flows from (used in) operating activities 2,704 1,465 3,460 2,992

2 unchanged sentences

Proceeds from asset sales (note 3)

Additional investments — ( 4 ) — ( 4 )

Loans to equity companies - net 2 1 18 11

2 unchanged sentences

Finance lease obligations - reduction (note 6)

( 3 ) ( 4 ) ( 8 ) ( 8 )

Dividends paid ( 421 ) ( 367 ) ( 771 ) ( 674 )

5 unchanged sentences

Cash and cash equivalents at end of period (a)

2,839 2,386 2,839 2,386

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

3 unchanged sentences

Interest (paid), net of capitalization.

( 14 ) ( 5 ) ( 24 ) ( 12 )

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.

Amounts for related party revenues and purchases for the three months ended March 31, 2025 have been revised from $ 2,874 million to $ 3,653 million and from $ 427 million to $ 1,206 million, respectively.

Impacts of the revision offset to zero.

The results for the three months ended March 31, 2026, are not necessarily indicative of the operations to be expected for the full year.

The results for the six months ended June 30, 2026, 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

millions of Canadian dollars 2026 2025 2026 2025 2026 2025

18 unchanged sentences

Financing (note 5)

Total expenses 3,804 2,914 16,823 12,007 360 328

Income (loss) before income taxes 1,694 870 1,027 420 87 28

Income tax expense (benefit) 395 206 240 98 22 7

Net income (loss)

1,299 664 787 322 65 21

Cash flows from (used in) operating activities

1,707 1,021 1,027 641 46 ( 134 )

Capital and exploration expenditures (c)

359 353 125 90 28 1

Second Quarter

Corporate and other

millions of Canadian dollars 2026 2025 2026 2025 2026 2025

Revenues and other income

Revenues (a) (b)

— — — — 15,981 11,208

Intersegment sales

— — ( 7,745 ) ( 5,348 ) — —

Investment and other income (note 3)

12 13 — — 81 24

Total revenues and other income 12 13 ( 7,745 ) ( 5,348 ) 16,062 11,232

Exploration — — — — 1 —

Purchases of crude oil and products

— — ( 7,742 ) ( 5,346 ) 10,641 7,215

Production and manufacturing 3 9 — — 1,819 1,664

Selling and general (note 11)

( 67 ) 58 ( 3 ) ( 2 ) 144 251

Federal excise tax and fuel charge — — — — 70 372

Depreciation and depletion

13 12 — — 511 478

Non-service pension and postretirement benefit 2 6 — — 2 6

Financing (note 5)

Total expenses ( 40 ) 87 ( 7,745 ) ( 5,348 ) 13,202 9,988

7 unchanged sentences

19 29 — — 531 473

Total assets as at March 31

IMPERIAL OIL LIMITED

(a) Includes export sales to the United States of $ 3,432 million (2025 - $ 1,915 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 2026 2025

Revenue from contracts with customers 13,547 9,559

Revenue outside the scope of ASC 606

Total 15,981 11,208

(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.

IMPERIAL OIL LIMITED

Six Months to June 30

millions of Canadian dollars 2026 2025 2026 2025 2026 2025

Revenues and other income

Revenues (a) (b)

235 126 27,603 23,023 559 525

Three Months to March 31

Intersegment sales

9,282 8,106 4,070 3,387 224 203

Investment and other income (note 3)

2 10 87 36 — —

Total revenues and other income 9,519 8,242 31,760 26,446 783 728

Exploration 4 2 — — — —

Purchases of crude oil and products

3,889 3,231 27,998 22,939 503 493

Production and manufacturing 2,456 2,303 1,005 923 106 113

Selling and general (note 11)

— — 375 349 41 42

Federal excise tax and fuel charge — — 417 961 1 3

Depreciation and depletion

856 888 135 89 14 8

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

Financing (note 5)

4 ( 12 ) 1 — — —

Total expenses 7,209 6,412 29,931 25,261 665 659

Income (loss) before income taxes 2,310 1,830 1,829 1,185 118 69

Income tax expense (benefit) 541 435 431 279 29 17

Net income (loss)

1,769 1,395 1,398 906 89 52

Cash flows from (used in) operating activities

1,828 1,222 1,631 1,997 71 ( 75 )

Capital and exploration expenditures (c)

721 619 216 178 31 4

Total assets as at June 30

29,834 29,387 14,337 11,784 590 519

Six Months to June 30

Corporate and other

29 unchanged sentences

41 70 — — 1,009 871

Total assets as at March 31

Total assets as at June 30

5,379 4,510 ( 2,277 ) ( 2,022 ) 47,863 44,178

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 2026 2025

7 unchanged sentences

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

Second Quarter

millions of Canadian dollars 2026 2025 2026 2025

5 unchanged sentences

The components of net benefit cost were as follows:

Second Quarter

millions of Canadian dollars 2026 2025 2026 2025

11 unchanged sentences

Amortization of actuarial loss (gain) ( 2 ) ( 3 ) ( 5 ) ( 5 )

Curtailment loss (gain) ( 1 ) — ( 1 ) —

Net benefit cost 2 3 5 6

Financing costs

Second Quarter

millions of Canadian dollars 2026 2025 2026 2025

28 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, 2026 and December 31, 2025, the fair value of long-term debt ($ 3,447 million, excluding finance lease obligations) was primarily a level 2 measurement.

At June 30, 2026 and December 31, 2025, 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 2026 2025 2026 2025

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, 2026

At June 30, 2026

millions of Canadian dollars

23 unchanged sentences

"Accounts payable and accrued liabilities" and "Other long-term obligations".

At March 31, 2026 and December 31, 2025, the company had $ 22 million and $ 6 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.

At June 30, 2026 and December 31, 2025, the company had $ 5 million and $ 6 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 483,593 483,593

The current 12-month normal course issuer bid program came into effect June 29, 2026 under which Imperial will continue its existing share purchase program.

The program enables the company to purchase up to a maximum of 24,179,635 common shares ( 5 percent of the total shares on June 15, 2026) which includes shares purchased under the normal course issuer bid from ExxonMobil Holdings Corporation.

As in the past, ExxonMobil Holdings 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, 2026

Balance as at June 30, 2026

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

2026 2025 2026 2025

Net income (loss) per common share – basic

Net income (loss) (millions of Canadian dollars)

2,190 949 3,130 2,237

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

483.6 509.0 483.6 509.0

Net income (loss) per common share (dollars)

4.53 1.86 6.47 4.39

Net income (loss) per common share – diluted

Net income (loss) (millions of Canadian dollars)

2,190 949 3,130 2,237

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

483.6 509.0 483.6 509.0

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

1.3 1.3 1.3 1.2

Weighted-average number of common shares outstanding,

assuming dilution (millions of shares)

484.9 510.3 484.9 510.2

Net income (loss) per common share (dollars)

4.52 1.86 6.46 4.38

Dividends per common share – declared (dollars)

0.87 0.72 1.74 1.44

IMPERIAL OIL LIMITED

6 unchanged sentences

Amounts reclassified from accumulated other comprehensive income 5 10

Balance at March 31 ( 39 ) ( 197 )

Balance at June 30 ( 14 ) ( 192 )

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

Second Quarter

millions of Canadian dollars 2026 2025 2026 2025

1 unchanged sentence

included in net benefit cost (a)

( 3 ) ( 7 ) ( 6 ) ( 13 )

(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 2026 2025 2026 2025

12 unchanged sentences

The following table summarizes the reserves and charges related to the workforce reduction program, which are recorded in "Accounts payable and accrued liabilities" and "Other long-term obligations" on the Consolidated balance sheet.

Second Quarter

millions of Canadian dollars 2026 2026

Balance at January 1 330

Balance at beginning of period 329 330

Additions/adjustments ( 50 ) ( 50 )

Payments made ( 11 ) ( 12 )

Balance at March 31 329

Balance at end of period 268 268

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