Imperial Oil reports $1.9B Q4 cash flow despite low oil prices
Imperial Oil Limited held its Q4 2025 earnings call on January 30, 2026, revealing strong financial results despite a challenging oil price environment. The company also announced key operational updates, including the start of production at a major project and changes to its asset portfolio.
The company reported over $1.9 billion in cash flow from operations for Q4 2025, bringing the full-year total to $6.7 billion. Even with WTI crude averaging below USD 60 per barrel, Imperial Oil generated nearly $1.4 billion in free cash flow during the quarter. By year-end, it held over $1.1 billion in cash after funding its capital programme and returning $4.6 billion to shareholders.
On the operational side, Imperial Oil achieved first production from the Cold Lake Leming SAGD project in early November 2025. However, the company also announced plans to cease production at its Norman Wells asset by the end of Q3 2026, resulting in a one-time charge of $320 million after tax.
The earnings call, attended by senior management and financial analysts, included updates from Cheryl Gomez-Smith, Senior Vice President of the Upstream division. Imperial Oil also disclosed a $156 million after-tax charge following a review of its inventory practices, aimed at optimizing stock levels.
The company's financial performance in Q4 2025 remained robust, with significant cash flow and shareholder returns. The shutdown of Norman Wells and inventory adjustments will impact future earnings, but the Cold Lake Leming project marks a new phase of production growth.
