The turnaround print is in. The second-half volumes are the test
Imperial Oil (TSX: IMO, NYSE American: IMO) reported July 31 second-quarter net income of $2,190 million, or $4.52 per diluted share, versus $949 million a year earlier. Cash flow from operating activities was $2,704 million. Excluding working capital it was $2,522 million. Chairman and chief executive John Whelan said the company had completed its heaviest planned turnaround quarter and expects stronger volumes in the second half of 2026.
Upstream production averaged 414,000 gross oil-equivalent barrels per day. Kearl totaled 257,000 barrels per day (182,000 Imperial's share). Cold Lake averaged 149,000 barrels per day, including solvent-assisted SAGD at Grand Rapids. Imperial's share of Syncrude was 73,000 barrels per day. Downstream throughput was 331,000 barrels per day, or 76 percent utilization, after the Strathcona turnaround and unplanned downtime.
Imperial cut 2026 refinery throughput guidance to 370,000 to 380,000 barrels per day and utilization to 85 to 88 percent, from 395,000 to 405,000 barrels and 91 to 93 percent. The cut reflects unplanned downtime and a short-term rail logistics issue at Strathcona that the company said it aims to resolve by year end.
The renewed NCIB allows purchase of up to 24,179,635 common shares, about 5 percent of the float, from June 29, 2026 to June 28, 2027. Imperial said it plans to accelerate purchases and finish the remaining allowable shares before year end. ExxonMobil Holdings has said it intends to participate to hold about 69.6 percent. Purchase plans can change without notice. The September 4 dividend record is already behind; the 87-cent cheque pays October 1.
Neutral read
IMO is on the listed producer list. Banks were skipped. $2.19 billion of Q2 net income, a second-half volume call, and a year-end NCIB target are the facts. Write this as post-turnaround execution, not as a crude-price forecast. Watch whether Kearl and Cold Lake actually rise in the second half and whether the 24.2 million share bid is completed before December 31.