Imperial Oil Limited (IMO): Business Model Canvas [Dec-2025 Updated]

You're looking to map out exactly how Imperial Oil Limited generates its $\text{34.589B}$ in trailing twelve months revenue ending September 30, 2025, and honestly, the blueprint is classic integration with a modern twist. This model runs on massive, long-life assets like Kearl and Cold Lake, supported by a $\text{17.01B}$ USD net asset base, but the real near-term action is the pivot: they just brought the Strathcona Renewable Diesel facility online in Q2 2025, adding a crucial low-carbon revenue stream while forecasting $\text{C\$1.9}$ to $\text{C\$2.1}$ billion in capital spending for the year. To see how the majority ownership by Exxon Mobil, the Pathways Alliance CCS project, and the trusted Esso/Mobil brands all fit into this complex machine, check out the nine building blocks below.

Imperial Oil Limited (IMO) - Canvas Business Model: Key Partnerships

You're looking at the core alliances that keep Imperial Oil Limited running smoothly, especially as they navigate capital deployment and the energy transition. These partnerships aren't just handshake agreements; they involve significant financial stakes and operational integration.

Exxon Mobil Corporation: Majority shareholder providing technology and global reach

The relationship with Exxon Mobil Corporation is foundational. ExxonMobil holds a 69.6% ownership stake in Imperial Oil Limited, making it the majority shareholder. This isn't just a passive investment, though. ExxonMobil actively supports Imperial Oil through service agreements covering crucial back-office and technical functions, including IT, procurement, and payroll. This scale allows Imperial Oil to operate with a leaner corporate structure. For instance, in major joint ventures like the Kearl oil sands operation, Imperial Oil holds a 70.96% interest, with ExxonMobil Canada owning the remaining 29.04%. Furthermore, as Imperial Oil executes its capital return strategy, Exxon Mobil Corporation intends to participate in the Normal Course Issuer Bid (NCIB) to maintain its ownership percentage at approximately 69.6%.

Here are some figures reflecting the operational integration:

Pathways Alliance: Collaboration with other oil sands producers on a large-scale carbon capture and storage (CCS) project

Imperial Oil is a key member of the Pathways Alliance, which groups Canada's largest oil sands producers. These members collectively operate approximately 95 per cent of Canada's oil sands production. The central partnership focus is the joint investment in a large-scale carbon capture and storage (CCS) project, initially proposed as a $16 billion or $16.5 billion endeavor. The Alliance has already allocated about $80 million toward preliminary engineering and design work. The goal is ambitious: to cut operational greenhouse gas emissions by 22 million metric tons by 2030 and achieve net zero by 2050. The proposed CCS network involves transporting captured $\text{CO}_2$ over 400 kilometres by pipeline from more than 20 facilities to an underground storage hub near Cold Lake. Securing the necessary fiscal support remains a point of negotiation; the industry has indicated a need for 75% total government support, as the current combined federal (50% tax credit) and provincial (proposed 12%) support is viewed as insufficient to greenlight the final investment decision.

The scale of the commitment and the required external support is clear:

• Total estimated project cost: $16 billion to $16.5 billion.
• Targeted emissions reduction by 2030: 22 million metric tons.
• Number of facilities planned for capture: More than 20.
• Pipeline transport distance: Approximately 400 kilometres.
• Pathways members' share of Canadian oil sands production: 95 per cent.

Branded Resellers/Dealers: Independent operators of Esso and Mobil retail stations across Canada

Imperial Oil maintains its strong market presence through a vast network of independently owned and operated retail stations. As of the end of 2024, the company reported growing this branded retail network to 2,600 sites across Canada. This scale helped Imperial Oil sustain its number one retail market share in Canada, based on Q4 2024 survey data. To give you some historical context, at the end of 2012, the distribution network included about 1,770 Esso-branded retail service stations, all owned by third parties at that time. The current structure relies heavily on these independent operators to manage the customer interface for the Esso and Mobil brands.

Pipeline Operators: Contracted and common carrier pipelines for crude oil and product transport

Moving the product from the oil sands and refineries requires extensive third-party pipeline infrastructure. While specific contract details aren't public, the volume flowing through these systems is substantial. For context, Imperial Oil's upstream business forecasted production for 2025 to be in the range of 433,000 to 456,000 barrels of oil-equivalent per day (BOE/d). Looking at actual performance, the third quarter of 2025 saw upstream production hit 462,000 gross oil-equivalent barrels per day, the highest quarterly production in over 30 years. The Cold Lake development, specifically, supplies numerous refineries across Canada and the U.S., relying on these common carrier and contracted pipelines for logistics. Downstream, refinery throughput averaged 397,000 barrels per day in Q1 2025, which also requires significant product pipeline capacity for distribution.

Here's a snapshot of the throughput volumes that depend on these transport partnerships:

Imperial Oil Limited (IMO) - Canvas Business Model: Key Activities

You're looking at the core engine room of Imperial Oil Limited as of late 2025. The key activities are all about maximizing output from existing, advantaged assets while bringing major growth projects online, all while keeping a tight lid on costs.

Upstream Production: Operating major oil sands assets like Kearl and Cold Lake

Imperial Oil Limited is driving production to levels not seen in over three decades. The focus remains squarely on the oil sands, with Kearl setting new records. For the third quarter of 2025, total upstream production hit 462,000 gross oil-equivalent barrels per day.

The asset-level performance is what really tells the story here. Kearl, which Imperial jointly owns with a 70.96 percent stake, delivered its highest-ever quarterly total gross production averaging 316,000 barrels per day, equating to 224,000 barrels for Imperial's share.

Cold Lake contributed a gross production average of 150,000 barrels per day in the same period. Overall, the 2025 corporate guidance forecasted total upstream volumes to land between 433,000 and 456,000 gross oil-equivalent barrels per day.

Here's a quick look at the recent operational scale:

Downstream Refining: Processing crude oil at three major Canadian refineries (Strathcona, Sarnia, Nanticoke)

The downstream segment is running hot, achieving near-maximum efficiency across the network, which includes the Strathcona, Sarnia, and Nanticoke refineries. In the third quarter of 2025, refinery throughput averaged 425,000 barrels per day, with capacity utilization hitting 98 percent. This strong processing volume was achieved despite planned turnaround work at Sarnia.

For the full year 2025, the expectation was for throughput between 405,000 and 415,000 barrels per day, with utilization targeted between 94 percent and 96 percent, benefiting from a lighter turnaround schedule compared to the prior year.

Product Marketing and Distribution: Managing the coast-to-coast logistics network for refined products

Moving those refined products is a massive logistical undertaking. For the first nine months of 2025, petroleum product sales averaged 466,000 barrels per day. This reflects the output from the refineries and the network that moves it to market, though Q3 2025 sales were slightly lower year-over-year at 464,000 barrels per day, driven by wholesale channel volumes.

Strategic Capital Projects: Completing the Strathcona Renewable Diesel project and Leming redevelopment at Cold Lake

You're seeing the payoff from multi-year capital investments now coming online. The Strathcona Renewable Diesel project, a $720 million investment, is a major step, with first production achieved in July 2025. It's designed to produce 20,000 barrels per day of renewable diesel annually, which is more than one billion liters.

The Leming redevelopment at Cold Lake is also hitting its stride. Steam injection started at the end of Q2 2025, with first oil anticipated in late 2025, aiming for a peak production of around 9,000 barrels per day over the following year.

Key project metrics:

• Strathcona Renewable Diesel Project Cost: $720 million (or USD $560 million).
• Strathcona Renewable Diesel Capacity: 20,000 barrels per day.
• Strathcona Renewable Diesel Start-up: Expected mid-year 2025.
• Leming SAGD First Oil: Anticipated late 2025.
• Leming Peak Production Target: Around 9,000 barrels per day.

Cost Optimization: Driving lower unit cash costs at Kearl and Cold Lake operations

The strategy includes driving down the cost to produce each barrel, which is critical for resilience. For 2025, Imperial set aggressive unit cash cost goals for its major assets, building on a track record of achieving costs below previous targets in 2024.

The unit cash cost goal for Kearl for 2025 is set at US $18 per barrel, down from a previous target of US $20 per barrel. For Cold Lake, the new unit cash cost goal is even lower, targeting US $13 per barrel.

To be fair, the actual unit cash costs reported for the nine months year-to-date in Q3 2025 were higher than these future targets, reflecting commodity price impacts and the period's specific operating mix. For the nine months ended Q3 2025, Kearl unit cash cost was $20.31 per oil-equivalent barrel, and Cold Lake was $19.78 per oil-equivalent barrel (USD converted at YTD average forex).

Finance: draft 13-week cash view by Friday.

Imperial Oil Limited (IMO) - Canvas Business Model: Key Resources

The foundation of Imperial Oil Limited's business model rests on a portfolio of irreplaceable, large-scale physical and financial assets, underpinned by specialized human and intellectual capital.

Oil Sands Assets

Imperial Oil Limited controls world-class, long-life resources concentrated in the Alberta oil sands, specifically at the Kearl and Cold Lake operations. These assets are central to the Upstream segment's production volume and cost structure.

Upstream production for the third quarter of 2025 reached 462,000 gross oil-equivalent barrels per day, marking the highest quarterly output in over three decades. Imperial Oil Limited's 2025 corporate guidance forecasted total Upstream production to grow to between 433,000 and 456,000 gross oil-equivalent barrels per day. The company's strategy focuses on profitable volume growth and lowering unit cash costs at these sites.

Key operational statistics from recent periods highlight asset performance:

• Kearl achieved its highest-ever quarterly production in Q3 2025 at 316,000 total gross oil-equivalent barrels per day (224,000 barrels Imperial's share).
• Kearl's full-year 2024 gross production was 281,000 barrels per day (200,000 barrels Imperial's share).
• Cold Lake averaged gross production of 145,000 barrels per day in Q2 2025.
• Cold Lake's full-year 2024 gross production increased by nearly 10 percent from 2023 to 148,000 barrels per day.
• The Leming redevelopment project, utilizing Steam-Assisted Gravity Drainage (SAGD) recovery technology, is expected to see first oil in late 2025, ramping up to a peak of around 9,000 barrels per day.

Integrated Infrastructure

The Downstream segment relies on three major refineries and an extensive Canadian logistics network to move product to high-value markets. This integration provides resiliency and flexibility across the value chain.

For the third quarter of 2025, refinery throughput averaged 425,000 barrels per day, achieving an overall refinery capacity utilization of 98 percent. This compares favorably to the 2025 guidance forecast of throughput between 405,000 and 415,000 bpd with utilization between 94% and 96%.

Key refinery assets and planned investments include:

• Strathcona Refinery: Capacity of 187,000 barrels per day (BBL/d), which recently completed construction and commissioning of Canada's largest renewable diesel facility with first production in July 2025.
• Nanticoke Refinery: A planned US$18 million revamp to improve performance on its 120,000-BBL/d crude unit.
• Sarnia Refinery: A planned US$15 million upgrade to enhance its 33,000-BBL/d fluid catalytic cracker unit (FCCU).

Financial Capital

Imperial Oil Limited maintains a strong balance sheet, which supports capital expenditures and shareholder returns. You should note the following key financial positions as of the third quarter of 2025.

The company reports net assets on the balance sheet as of September 2025 of $17.01 Billion USD. Furthermore, as of December 4, 2025, the market capitalization stood at CAD 66.74 billion. The third quarter of 2025 saw cash flows from operating activities reach $1,798 million CAD.

Here's a quick look at the balance sheet structure as of September 2025:

Technology and Patents

Advanced recovery methods are critical for maximizing value from existing resources, particularly at Cold Lake. Imperial Oil Limited is a leader in applying technology to complex energy projects.

The company is leveraging its proprietary technology, including solvent-assisted SAGD (SA-SAGD), which is an advancement over traditional SAGD. This technology, first applied commercially at the Grand Rapids project, is designed to reduce the amount of steam required to mobilize bitumen.

Key technological advancements include:

• SA-SAGD at Cold Lake delivers a 40 percent reduction in greenhouse gas intensity relative to the legacy cyclic steam stimulation process.
• Kearl is implementing operational changes to double turnaround intervals to four years, demonstrating confidence in predictive maintenance and operational refinement.
• The Enhanced Bitumen Recovery Technology (EBRT) pilot at Aspen is progressing, with a pilot start-up anticipated by 2027.

Human Capital

Specialized engineering and operational expertise is necessary to manage and optimize these complex, integrated energy projects. Imperial Oil Limited employs a highly skilled workforce, though it is undergoing strategic restructuring.

As of the latest available data, the company has approximately 5.3K employees. However, Imperial Oil Limited announced a major restructuring in September 2025, which includes plans to cut its workforce by about 20 percent by the end of 2027. This restructuring involves relocating most remaining Canadian jobs by 2028 to the Strathcona Refinery near Edmonton, Alberta, and outsourcing some work to ExxonMobil's global capability centres in India.

Imperial Oil Limited (IMO) - Canvas Business Model: Value Propositions

You're looking at the core value Imperial Oil Limited (IMO) delivers to its customers and shareholders as of late 2025. It's all about scale, reliability, and a pivot toward lower-carbon offerings, grounded in massive asset performance.

Integrated Reliability: Stable Supply

The value here is the seamless flow from resource extraction to the final pump. You see this in the operational performance of their Downstream segment, which is a key part of that integrated chain. For instance, in the third quarter of 2025, refinery capacity utilization hit 98 percent.

This reliability is backed by their market presence:

• Canada's largest petroleum refiner.
• A major producer of crude oil and synthetic oil.
• A leading fuels marketer from coast to coast.

High-Volume Production: Upstream Scale

The sheer volume coming out of the Upstream segment is a major proposition. While the initial 2025 corporate guidance forecasted production between 433,000 and 456,000 gross oil equivalent barrels per day, the actual performance in the third quarter of 2025 showed they exceeded that range, achieving 462,000 gross oil-equivalent barrels per day, which was their highest quarterly production in over 30 years.

Here's a quick look at that production scale, using the Q3 2025 results:

Low-Carbon Fuels: Strathcona Renewable Diesel

Imperial Oil is delivering on lower-carbon alternatives with the Strathcona renewable diesel facility. Construction was confirmed complete in Q2 2025, with operations starting around mid-2025. This was a $720-million investment.

The output potential is significant:

• Capacity to produce over 1 billion liters of renewable diesel annually.
• This equates to approximately 264.17 million gallons per year.

Brand Trust: Market Recognition

The value proposition includes the trust associated with established consumer-facing brands. You see this across their marketing network for fuels, lubricants, and convenience retail, primarily through the Esso and Mobil banners.

Shareholder Returns: Consistent Payouts

For investors, the commitment to returns is quantified by a long history of increases. While the prompt mentioned 29 years, the latest declaration shows the company has increased its annual dividend payment for 30 consecutive years. The third quarter 2025 dividend declared was 72 cents per share, payable on October 1, 2025. This puts the annualized dividend at $2.06 per share, yielding about 2.19%, with a payout ratio around 36.56% as of late 2025.

Finance: draft 13-week cash view by Friday.

Imperial Oil Limited (IMO) - Canvas Business Model: Customer Relationships

You're looking at how Imperial Oil Limited connects with the people and entities that buy its products and services as of late 2025. It's a mix of high-volume, low-touch transactions and deep, long-term commercial relationships, all underpinned by shareholder return programs.

Transactional Retail: Self-service at Esso and Mobil branded service stations.

The core of the retail relationship is transactional, relying on the ubiquity of the Esso and Mobil brands. These stations are owned and operated by independent businesses, but Imperial Oil supplies the fuel, maintaining brand standards. As of August 27, 2025, there are 2,465 Esso gas stations across Canada. Ontario holds the largest share with 942 locations, representing about 38% of the total Esso network. This network is described as consisting of more than 2,000 stations across Canada. At the end of 2024, Imperial Oil was supplying fuel to about 2,600 sites operating under a branded wholesaler model, where the company supplies fuel to independent third parties.

Here's a quick look at the geographic spread of the Esso retail footprint as of late 2025:

The relationship is also cemented through brand association, such as Imperial Oil's multiyear agreement naming them the Official Retail Fuel of the NHL in Canada, which was renewed in 2024.

Dedicated Account Management: Direct sales and long-term contracts with large industrial and commercial customers.

For large customers, the relationship shifts to dedicated account management, focusing on reliable supply through wholesale channels. Imperial Oil's petroleum product sales volume in the third quarter of 2025 was 464,000 barrels per day, a decrease from 487,000 barrels per day in the third quarter of 2024, with the drop driven by lower volumes in the supply and wholesale channels. Conversely, in the second quarter of 2025, petroleum product sales were 480,000 barrels per day, an increase from 470,000 barrels per day in the second quarter of 2024, aided by the Trans Mountain pipeline expansion. For the six months ended June 30, 2025, revenues from related parties totaled $23,674 million CAD.

The Downstream segment performance reflects this commercial focus:

• Refinery throughput averaged 425,000 barrels per day in Q3 2025, with capacity utilization at 98%.
• Refinery throughput averaged 376,000 barrels per day in Q2 2025, with capacity utilization at 87%.
• Upstream achieved its highest-ever quarterly production in over 30 years in Q3 2025 at 462,000 gross oil-equivalent barrels per day.

Investor Relations: Consistent communication and capital return programs like the accelerated NCIB (Normal Course Issuer Bid).

The relationship with shareholders is managed through clear communication on capital allocation priorities, emphasizing cash return. Imperial Oil announced a new Normal Course Issuer Bid (NCIB) on June 23, 2025, to repurchase up to 5% of its 509,044,963 outstanding common shares as of June 15, 2025, allowing for a maximum of 25,452,248 shares to be bought over the following year. This reflects the company's priority and capacity to return cash, consistent with its balance sheet strength and strong cash generation. The company returned $1,835 million to shareholders in the third quarter of 2025 alone, which included $366 million in dividend payments and $1,469 million in share repurchases under the NCIB. Specifically for the period from July 1, 2025, to September 30, 2025, the company repurchased 12,183,936 shares for CAD 1,469.07 million. The quarterly dividend declared for the second quarter of 2025 was 72 cents per share. Furthermore, the company is set to go ex-dividend on December 3rd, 2025, with a dividend of 0.53704 USD per share payable on January 1st, 2026.

Automated Digital Services: Loyalty programs and mobile payment options for retail consumers.

Digital services support the transactional retail relationship, though the primary loyalty mechanism appears external. Imperial Oil markets its fuels under the Esso and Mobil brands, and customers rely on these for quality performance. While the company has a history with various rewards programs, the current structure integrates with external digital ecosystems. General 2025 loyalty market data suggests that 92% of surveyed consumers are enrolled in at least one loyalty program, and almost 50% are part of more than five programs. More than half of participating customers engage with their loyalty programs weekly. More than 50% of US consumers surveyed in 2025 indicated they are willing to share their personal information for personalization benefits. The company continues to offer services that meet the growing needs of consumers, anticipating and meeting those needs across its branded network.

Imperial Oil Limited (IMO) - Canvas Business Model: Channels

Imperial Oil Limited (IMO) uses an integrated logistics network to move crude oil from its Upstream assets and refined products from its manufacturing hubs to market. This network is a key part of the Downstream segment, which focuses on efficiently moving product to high-value markets across Canada. Imperial Oil continues to optimize this network, as seen by the completion and start-up of the Strathcona renewable diesel facility around mid-2025, which is expected to increase product sales.

The Retail Network, branded as Esso and Mobil service stations, is the final touchpoint for many refined products. While the exact count of service stations isn't specified in recent guidance, the overall petroleum product sales volume reflects the activity through this and other commercial channels. For example, petroleum product sales averaged 455,000 barrels per day in the first quarter of 2025 and increased to 480,000 barrels per day in the second quarter of 2025.

Wholesale/Direct Sales to industrial and transportation sectors are a significant component of product off-take. This channel experienced some headwinds; for instance, the second quarter of 2025 reported an unfavorable wholesale volume impact of about $70 million. Similarly, the third quarter of 2025 also cited an unfavorable wholesale volume impact of about $70 million, with lower sales volumes noted in both supply and wholesale channels.

The efficiency of moving products to these channels is heavily reliant on the Pipeline System. Imperial Oil forecasts its 2025 downstream throughput to be between 405,000 and 415,000 barrels per day, with utilization targeted between 94% and 96%. The company explicitly focuses on leveraging its coast-to-coast logistics network. The expansion of the Trans Mountain pipeline was noted as enabling higher petroleum product sales in the second quarter of 2025. The company is also focused on optimizing processing flexibility across its network.

Here's a look at the throughput and sales volumes that move through these channels in 2025:

Rail and Road Transport serve as necessary complements to the pipeline infrastructure, ensuring product delivery to markets not directly serviced by the company's owned or contracted pipelines. Imperial Oil's overall strategy involves enhancing logistics and processing flexibility across the entire network to maintain resiliency.

The company's distribution strategy is supported by its integrated operations, which include:

• Leveraging a coast-to-coast logistics network for efficient product movement.
• Maximizing refinery crude and product slate flexibility to improve resiliency.
• The mid-2025 start-up of the Strathcona renewable diesel facility, adding lower-emission fuels to the transportation sector.

Finance: draft 13-week cash view by Friday.

Imperial Oil Limited (IMO) - Canvas Business Model: Customer Segments

Imperial Oil Limited serves distinct customer groups across its integrated operations, spanning retail, commercial, industrial, and global commodity markets.

Retail Consumers

This segment includes Canadian drivers purchasing refined products through the branded retail network. In 2024, Imperial Oil grew its branded network to 2,600 sites. For the six months ended June 30, 2025, sales volumes for gasolines averaged 220 thousand barrels per day.

The product mix sold through these channels, based on six months 2025 volumes, is detailed below:

Commercial/Industrial Fleets

This group comprises large-volume users such as airlines, trucking, and marine operations, primarily purchasing diesel and jet fuel. For the six months ended June 30, 2025, the combined sales volume for heating, diesel, and jet fuels was 180 thousand barrels per day. The Downstream segment, which serves these markets, reported total petroleum product sales averaging 480,000 barrels per day in the second quarter of 2025.

Refinery operations supporting this segment ran at an overall capacity utilization of 87 percent in the second quarter of 2025, with throughput averaging 376,000 barrels per day.

Petrochemical Industry

Manufacturers purchase hydrocarbon-based chemicals and intermediates from Imperial Oil Limited's Chemical segment. For the third quarter of 2025, petrochemical sales volumes were reported at 173 thousand tonnes. The total revenues for the Chemical segment for the six months ended June 30, 2025, were CAD728 million.

The segment revenue breakdown for the six months ended June 30, 2025, compared to 2024 is:

• Chemical Revenues (millions of Canadian dollars) - 2025: 728
• Chemical Revenues (millions of Canadian dollars) - 2024: 837

Global Refiners/Traders

This segment involves the sale of crude oil, synthetic crude, and bitumen to external refiners and commodity traders globally. Imperial Oil's total revenues for the second quarter of 2025 were CAD11.208 billion. For the nine months ended June 30, 2025, total revenues and other income reached CAD23.749 billion.

Upstream production, which feeds these sales, was forecasted for 2025 to be between 433,000 and 456,000 gross oil equivalent barrels per day. The company's share of gross production from Syncrude averaged 78,000 barrels per day in the third quarter of 2025. Gross bitumen production at Cold Lake averaged 150,000 barrels per day in the third quarter of 2025.

Key upstream production metrics for the second quarter of 2025:

• Total Upstream Production (gross oil-equivalent barrels per day): 427,000
• Kearl Total Gross Production (barrels per day): 275,000
• Imperial's Share of Kearl Production (barrels per day): 195,000

Imperial Oil Limited (IMO) - Canvas Business Model: Cost Structure

You're looking at the hard numbers driving Imperial Oil Limited's cost base for 2025, focusing on where the cash is going to keep the integrated business running and growing.

Capital Expenditures

Imperial Oil Limited's spending plan for 2025 is set within a defined range, reflecting investment across both Upstream growth and Downstream optimization projects. The forecasted spending is between C$1.9 to C$2.1 billion. This capital allocation supports volume growth initiatives like mine progression work at Kearl and the completion of the Leming redevelopment project in the Upstream segment.

Raw Material Costs

A major component of the overall cost of goods sold involves the purchase of necessary feedstocks. For the three months ended March 31, 2025, the amount recorded for Purchases of crude oil and products that was transacted with related parties totaled $427 million (Canadian dollars). This highlights the scale of internal transactions within the broader corporate structure.

Operating Costs

Operating costs cover the day-to-day expenses to run the production and manufacturing facilities, excluding the cost of raw materials. For the first quarter of 2025 (three months ended March 31, 2025), total Production and manufacturing expenses were $1,686 million. Imperial Oil Limited is actively targeting reductions in unit cash costs at its key Upstream assets as part of its efficiency drive. The specific unit cash cost goals introduced for 2025 are:

• Kearl: Target of US$18 per barrel, down from a previous target of US$20 per barrel.
• Cold Lake: Target of $13 per barrel.

Additionally, the company incurred a significant one-time operating expense related to corporate restructuring in the third quarter of 2025, amounting to a charge of $330 million before tax.

Distribution and Logistics Costs

Maintaining the coast-to-coast network of pipelines and terminals is a key operational expense, though often embedded within broader categories. The Selling and general expense category, which includes overhead related to sales and distribution, was $259 million for the first quarter of 2025. Imperial Oil Limited continues to focus on improving its advantaged Canadian downstream business by leveraging this logistics network to move product to high-value markets.

Planned Turnarounds

Scheduled maintenance at refineries and upstream facilities requires significant operating expenditure. Imperial Oil Limited planned for a lighter turnaround schedule in 2025 compared to 2024, expecting a 30% lower cost impact from downstream turnarounds. The specific estimated operating costs (Imperial share, before royalties) associated with the 2025 planned turnarounds are detailed below:

The total estimated operating cost for these specific 2025 planned turnarounds is $310 million.

Imperial Oil Limited (IMO) - Canvas Business Model: Revenue Streams

You're looking at the core ways Imperial Oil Limited generates cash from its integrated operations as of late 2025. This isn't just about the final sales number; it's about where the money actually comes from across the value chain.

Downstream Sales: This is historically the largest revenue driver, coming from refined products. Think gasoline, diesel, and jet fuel sold through the Esso and Mobil brands, plus sales to industrial customers. For the third quarter of 2025, the Downstream segment showed strong operational performance, hitting a refinery capacity utilization of 98 percent. Petroleum product sales for that quarter averaged 464,000 barrels per day.

Upstream Sales: This stream covers the sale of raw materials: crude oil, natural gas, and bitumen extracted from their assets. Upstream production hit a high note in the third quarter of 2025, averaging 462,000 gross oil-equivalent barrels per day. For context on pricing for the nine months ending September 30, 2025, the average realized price for West Texas Intermediate (WTI) was US$66.65 per barrel, and Bitumen averaged $69.68 per barrel (CAD).

Chemical Sales: This segment manufactures and markets petrochemicals, solvents, and related products. While direct revenue isn't broken out, the net income for the Chemicals segment in the third quarter of 2025 was $21 million.

Total Revenue: Trailing twelve months revenue ending September 30, 2025, was $34.589B. For a more recent snapshot, sales for the nine months ended September 30, 2025, totaled CAD 35,798 million.

Renewable Fuel Sales: This is the newest component, stemming from the Strathcona Renewable Diesel facility, which started operations in mid-2025. Once fully operational, this 20,000-barrel-per-day complex is projected to produce over 1 billion liters (approximately 264.17 million gallons) of renewable diesel annually.

Here's a quick look at the operational scale feeding these revenue streams for the nine months ending September 30, 2025, compared to the prior year:

The company's strategy relies on the integration of these parts; for instance, the Downstream segment sells products refined from the Upstream segment's crude, and the new renewable diesel stream diversifies that offering. If onboarding the new renewable diesel feedstock takes longer than expected, cash flow projections for Q4 2025 will need adjustment. Finance: draft Q4 2025 cash flow impact analysis by next Tuesday.