Imperial Oil Limited (IMO Quick QuoteIMO - Free Report) reported second-quarter 2025 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line decreased from the year-ago quarter’s $1.54. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.

Revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.5 billion. The top line also decreased from the year-ago quarter’s level of $9.8 billion, primarily due to weak performance in the Chemical segment.

Imperial Oil Limited Price, Consensus and EPS Surprise

Imperial Oil Limited price-consensus-eps-surprise-chart | Imperial Oil Limited Quote

During the quarter, Imperial Oil returned C$367 million to its shareholders through dividend payments.

Calgary-based integrated oil and gas company announced a quarterly dividend of 72 Canadian cents per share on its outstanding common shares, payable on Oct. 1 to shareholders of record as of Sept. 4, 2025.

During the quarter, the company completed the construction of Canada’s largest renewable diesel facility at the Strathcona refinery.

IMO’s Segmental Information

Upstream: Revenues of C$3.8 billion decreased from the prior-year level of C$4.6 billion. The figure also missed our expectation of C$4.8 billion. The segment reported a net income of C$664 million compared with C$799 million in the year-ago quarter. However, the figure beat our expectation of C$558.1 million.

The company recorded average upstream production of 427,000 gross oil-equivalent barrels per day (boe/d) in the second quarter, which increased from the prior-year level of 404,000 boe/d. The figure also beat our expectation of 416,000 boe/d.  

The company recorded total gross bitumen production at Kearl averaging 275,000 barrels per day (195,000 barrels Imperial's share), up from 255,000 barrels per day (181,000 barrels Imperial's share) in the second quarter of 2024. This increase was primarily due to mine productivity and improved reliability.

The company also posted gross bitumen production at Cold Lake, averaging 145,000 barrels per day (bpd), which was a decrease from 147,000 bpd in the second quarter of 2024. This decline was primarily caused by production and steam cycle timing, and turnaround impacts, partially offset by Grand Rapids solvent-assisted SAGD.

The company noted that the Leming SAGD project remains on track with steam injection started at the end of the second quarter and expected to continue until late 2025. First oil from this project is anticipated in late 2025, with production ramping up over the next year to a peak of around 9,000 bpd.

IMO’s share of gross production from Syncrude averaged 77,000 bpd, up from 66,000 bpd in the second quarter of 2024, primarily driven by the timing of the annual coker turnaround.

Bitumen price realizations totaled C$65.82 per barrel compared with C$83.02 in the year-ago period. IMO received an average realized price of C$87.85 per barrel for synthetic oil compared with the prior-year quarter’s C$111.56. For conventional crude oil, it received C$39.31 per barrel compared with C$64.55 in the corresponding period of 2024. 

Downstream: Revenues of C$12.4 billion decreased from the prior-year level of C$14.6 billion. Moreover, the figure missed our expectation of C$14.7 billion.

Net income totaled C$322 million compared with C$294 million in the year-ago period. The figure also beat our expectation of C$306.8 million.

The company recorded petroleum product sales of 480,000 bpd, up from 470,000 bpd in the second quarter of 2024. The figure beat our expectation of 458,000 bpd. The refinery throughput in the second quarter averaged 376,000 bpd, down from the prior-year quarter’s level of 387,000 bpd. Moreover, the figure missed our estimate of 393,000 bpd. The company recorded lower refinery throughput, primarily due to unplanned downtime. The capacity utilization of 87% was down from the year-ago level of 89%. The figure also missed our estimate.

Chemical: Revenues of C$356 million decreased from C$418 million in the second quarter of 2024. Moreover, the figure missed our prediction of C$453.1 million.

Net income totaled C$21 million compared with C$65 million in the year-ago period. Moreover, the figure missed our expectation of C$39.5 million.

IMO’s Total Costs & Capex

Total expenses of C$10 billion decreased from the year-ago quarter’s C$11.9 billion. Moreover, the figure was down from our prediction of C$13.2 billion.

In the quarter under review, this Zacks Rank #3 (Hold) company’s capital and exploration expenditures totaled C$473 million, up from the year-ago quarter’s C$462 million.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Financial Performance for IMO

Cash flow from operating activities was C$1.5 billion compared with C$1.6 billion in the year-ago quarter. 

As of June 30, Imperial Oil had cash and cash equivalents of C$2.4 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 13.8%.

Important Earnings at a Glance

While we have discussed IMO’s second-quarter results in detail, let us take a look at three other key reports in this space.

The leading U.S.-based natural gas producer, Expand Energy Corporation (EXE Quick QuoteEXE - Free Report) , reported second-quarter 2025 adjusted earnings per share of $1.10, which missed the Zacks Consensus Estimate of $1.14. However, the company’s bottom line surpassed the year-ago adjusted profit of 1 cent, fueled by strong production and higher natural gas price realization.

Expand Energy’s ‘natural gas, oil and NGL’ revenues of $2 billion missed the Zacks Consensus Estimate by $74 million. However, the top line was outstandingly higher than the year-ago figure of $378 million.

As of June 30, 2025, the company had $731 million in cash and cash equivalents. Expand Energy had a long-term debt of $5.1 billion, reflecting a debt-to-capitalization of 22.2%.

The Denver, CO-based oil and gas exploration and production company,Ovintiv Inc. (OVV Quick QuoteOVV - Free Report) , reported second-quarter 2025 adjusted earnings per share of $1.02, which missed the Zacks Consensus Estimate of $1.04. The bottom line also decreased from the year-ago level of $1.24. This underperformance was due to weaker oil price realizations and a 4% year-over-year increase in expenses during the quarter.   

The company’s total revenues of $2.3 billion increased 1.3% from the year-ago quarter’s figure and beat the Zacks Consensus Estimate by 18.8%. Higher contributions from sales of purchased products and strong gains from hedging drove the revenue growth. 

As of June 30, the company had cash and cash equivalents worth $20 million and long-term debt of $4.4 billion. Its debt-to-capitalization was 29.7%.

The Houston, TX-based oil and gas equipment and services company,Oceaneering International, Inc. (OII Quick QuoteOII - Free Report) , reported an adjusted profit of 49 cents per share for the second quarter of 2025, beating the Zacks Consensus Estimate of 42 cents. Moreover, the bottom line surpassed the year-ago quarter’s reported figure of 28 cents. This was due to year-over-year strong operating income from its segments.

Total revenues were $698.2 million, which was in line with the Zacks Consensus Estimate. The top line increased approximately 4.4% from the year-ago quarter’s $668.8 million, due to the strong revenue contribution from its segments.

As of June 30, 2025, OII had cash and cash equivalents worth $434 million and $497.5 million, respectively, along with a long-term debt of about $484.6 million. The debt-to-total capital was 36.4%.