Canadian oil producer Imperial Oil more than doubled its second-quarter profit and beat Wall Street estimates on Friday, as a surge in crude prices helped offset lower oil sands output and the impact of planned refinery maintenance.
Earlier this week, peer Cenovus Energy also posted a sharp jump in quarterly profit and raised its production outlook, with higher crude prices buoying Canada’s oil sands sector despite maintenance-related output constraints.
Geopolitical tensions in the Middle East and supply uncertainty lifted oil prices during the quarter, while global fuel supply disruptions improved refining margins across the industry.
Higher benchmark crude prices boosted Exxon-owned Imperial’s realized prices, with synthetic crude realizations jumping more than 60 per cent year-over-year and Western Canada Select prices rising about 45 per cent, helping offset lower production volumes.
CEO John Whelan said on a conference call Friday he was optimistic about the potential for Canada’s oil industry, given the recent signing of an agreement between the federal government and the province of Alberta aimed at creating policy conditions that will spur production growth.
“With a supportive fiscal and regulatory framework, Imperial has the potential to double our gross operated upstream production over time, with the development of our high-quality oil sands leases using our advantaged technology,” Whelan said.
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Total upstream production in the second quarter averaged 414,000 gross barrels of oil equivalent per day (boepd), down from 427,000 boepd a year earlier, reflecting lower output at Kearl and Syncrude oil sands operations.
Whelan said the company expects strong volumes and performance in the second half of 2026 after completing its heaviest maintenance quarter.
Refinery throughput fell to 331,000 barrels per day from 376,000 bpd, while refinery utilization declined to 76 per cent from 87 per cent, primarily because of planned turnaround work at Strathcona and unplanned downtime.
Imperial lowered its 2026 refinery outlook, cutting expected throughput to 370,000-380,000 bpd from 395,000-405,000 bpd.
It cited unplanned downtime and a short-term rail logistics challenge at its Strathcona refinery, near Edmonton, that it expects to resolve by year end.
Imperial reported net income of C$2.19 billion, up from last year’s C$949 million, with per-share profit of C$4.52 beating the average estimate of C$4.13, according to LSEG-compiled data.