Canada's Imperial Q4 revenue misses on weather impact at Kearl operations

Overview

• Canada oil producer's Q4 revenue missed analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company returned C$2,072 mln to shareholders via dividends and share repurchases

Outlook

• Imperial plans to cease production at Norman Wells by Q3 2026

• Company aims to grow volumes and lower unit cash costs

• Imperial expects Leming SAGD project to reach peak production of 9,000 barrels per day

Result Drivers

• UPSTREAM PRODUCTION - Wet weather at Kearl reduced production volumes, impacting quarterly upstream output

• DOWNSTREAM MAINTENANCE - Planned maintenance in eastern manufacturing hub reduced refinery throughput

• LOWER REALIZATIONS - Decreased crude oil prices led to lower upstream realizations, affecting net income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 8 "hold" and 8 "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$112.50, about 21.1% below its January 29 closing price of C$142.64

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw3wf46Fa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.