Imperial Oil Ltd

TSX:IMO

Bottom line: Imperial reported stronger second-quarter earnings and cash flow, helped by higher commodity prices, while also signaling softer upstream production and a lower downstream throughput outlook for the rest of 2026.

Profit growth: Net income rose to $2.190 billion, up $1.241 billion year over year, and cash flow from operations excluding working capital was $2.522 billion, up about $1.1 billion from last year.

Guidance cuts: Upstream full-year production is now expected toward the low end of the guidance range, and downstream throughput guidance was cut by approximately 6% because of downtime, renewable diesel mix shifts and rail congestion at Strathcona.

Operational execution: Management said major turnarounds were completed ahead of schedule or with strong performance, including Kearl’s turnaround and the Strathcona refinery turnaround, and expects higher volumes in the second half now that the heaviest maintenance period is behind it.

Capital returns: Imperial plans to accelerate buybacks under the NCIB and expects to repurchase all remaining allowable shares before year-end, while continuing to prioritize a growing dividend.