Canada's Imperial Q1 profit falls 27% as refinery issues weigh

Overview

• Canada oil and gas producer's Q1 net income and EPS declined yr/yr

• Quarterly revenue was little changed, upstream production stable yr/yr

• Downstream results impacted by unplanned downtime and Syncrude feedstock disruption

Outlook

• Imperial intends to renew its normal course issuer bid in June 2026

• Company says recent tariffs are not expected to materially impact financial position or cash flows

• Imperial cites significant volatility in global commodity markets as a factor for current outlook

Result Drivers

• LOWER REALIZATIONS - Decreased average bitumen and synthetic crude oil prices, mainly due to weaker WTI/WCS and synthetic/WTI spreads, reduced upstream earnings

• REFINERY AND FEEDSTOCK DISRUPTIONS - Unplanned refinery downtime and disruption of synthetic crude feedstock from Syncrude's coker outage lowered downstream throughput and capacity utilization

• UNFAVORABLE FOREIGN EXCHANGE - Upstream results were negatively affected by unfavorable foreign exchange impacts of about C$100 mln

Company press release: ID:nBw6ClGsTa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "sell" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and 9 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas refining and marketing peer group is "buy."

• Wall Street's median 12-month price target for Imperial Oil Ltd is C$131.00, about 28% below its April 30 closing price of C$181.96

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 21 three months ago

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