IMPERIAL OIL LTDIMO
IMPERIAL OIL LTD Segments Disclosure
Business segments
Includes export sales to the United States of $9,223 million (2024 - $10,300 million, 2023 - $8,982 million).
The company operates its business in Canada, and its three reportable segments are Upstream, Downstream and Chemical. The factors used to identify these reportable segments are based on the nature of the operations that are undertaken by each segment, the structure of the company’s internal organization, and reflect the nature of internal reviews by the company's Management Committee (MC). The MC is considered collectively, and not in their individual capacity, to be the company's Chief Operating Decision Maker (CODM), and includes the company's CEO, CFO, and a senior vice-president, who oversee the Upstream, Downstream and Chemical businesses. The Upstream segment is organized and operates to explore for and ultimately produce crude oil and its equivalent, and natural gas. The Downstream segment is organized and operates to refine crude oil into petroleum products and to distribute and market these products. The Chemical segment is organized and operates to manufacture and market hydrocarbon-based chemicals and chemical products. The above segmentation has been the long-standing practice of the company and is broadly understood across the petroleum and petrochemical industries.
Corporate and other includes assets and liabilities that do not specifically relate to business segments – primarily cash, capitalized interest costs, short-term borrowings, long-term debt and liabilities associated with incentive compensation, pension and other postretirement benefit liabilities. Net earnings effects under Corporate and other activities primarily include debt-related financing, corporate governance costs, non-service pension and postretirement benefit costs, share-based incentive compensation expenses and interest income.
The CODM generally allocates resources through an annual planning process. They also allocate capital based on detailed project economics and long-term strategic objectives across reportable segments. The CODM primarily uses changes in Net Income (loss) to assess segment financial performance.
Segment accounting policies are the same as those described in note 1, "Summary of significant accounting policies". Upstream, Downstream and Chemical expenses include amounts allocated from Corporate and other activities. The allocation is based on proportional segment expenses. Transfers of assets between segments are recorded at book amounts. Intersegment sales are made essentially at prevailing market prices. Assets and liabilities that are not identifiable by segment are allocated.
| Upstream | Downstream (e) | Chemical (e) | |||||||||||||||||||||||||||
| millions of Canadian dollars | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||||
| Revenues and other income | |||||||||||||||||||||||||||||
Revenues (a) (b) | 291 | 121 | 222 | 45,638 | 50,114 | 49,241 | 989 | 1,124 | 1,239 | ||||||||||||||||||||
Intersegment sales | 15,645 | 17,868 | 16,274 | 6,371 | 6,771 | 6,509 | 388 | 323 | 342 | ||||||||||||||||||||
Investment and other income (note 8) | 14 | 26 | 16 | 81 | 59 | 108 | — | 2 | — | ||||||||||||||||||||
| Total revenues and other income | 15,950 | 18,015 | 16,512 | 52,090 | 56,944 | 55,858 | 1,377 | 1,449 | 1,581 | ||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||
Exploration (note 15) | 7 | 3 | 5 | — | — | — | — | — | — | ||||||||||||||||||||
Purchases of crude oil and products | 6,263 | 7,367 | 6,636 | 45,017 | 49,856 | 47,886 | 923 | 916 | 997 | ||||||||||||||||||||
Production and manufacturing | 5,015 | 4,644 | 4,917 | 1,992 | 1,741 | 1,702 | 241 | 197 | 260 | ||||||||||||||||||||
Selling and general (note 11) | — | — | — | 725 | 706 | 693 | 81 | 92 | 89 | ||||||||||||||||||||
| Federal excise tax and fuel charge | — | — | — | 1,710 | 2,531 | 2,399 | 5 | 4 | 3 | ||||||||||||||||||||
Depreciation and depletion (note 11) | 1,906 | 1,747 | 1,680 | 203 | 181 | 183 | 16 | 15 | 15 | ||||||||||||||||||||
| Non-service pension and postretirement benefit | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Financing (note 12) | (14) | 4 | 7 | — | — | — | — | — | — | ||||||||||||||||||||
| Total expenses | 13,177 | 13,765 | 13,245 | 49,647 | 55,015 | 52,863 | 1,266 | 1,224 | 1,364 | ||||||||||||||||||||
Income (loss) before income taxes | 2,773 | 4,250 | 3,267 | 2,443 | 1,929 | 2,995 | 111 | 225 | 217 | ||||||||||||||||||||
Income tax expense (benefit) (note 3) | 652 | 988 | 755 | 574 | 443 | 694 | 29 | 54 | 53 | ||||||||||||||||||||
Net income (loss) | 2,121 | 3,262 | 2,512 | 1,869 | 1,486 | 2,301 | 82 | 171 | 164 | ||||||||||||||||||||
Cash flows from (used in) operating activities | 3,606 | 4,664 | 3,100 | 3,372 | 1,049 | 608 | (28) | 211 | 53 | ||||||||||||||||||||
Capital and exploration expenditures (c) | 1,480 | 1,078 | 1,108 | 412 | 572 | 472 | 11 | 30 | 23 | ||||||||||||||||||||
| Property, plant and equipment | |||||||||||||||||||||||||||||
| Cost | 49,388 | 47,920 | 46,776 | 8,265 | 7,887 | 7,368 | 1,029 | 1,015 | 1,018 | ||||||||||||||||||||
| Accumulated depreciation and depletion | (23,351) | (21,658) | (19,936) | (4,602) | (4,430) | (4,301) | (758) | (743) | (757) | ||||||||||||||||||||
Net property, plant and equipment (d) (f) (note 11) | 26,037 | 26,262 | 26,840 | 3,663 | 3,457 | 3,067 | 271 | 272 | 261 | ||||||||||||||||||||
Total assets | 29,111 | 28,042 | 28,718 | 11,036 | 11,624 | 10,114 | 540 | 474 | 475 | ||||||||||||||||||||
| Corporate and other | Eliminations | Consolidated | |||||||||||||||||||||||||||
| millions of Canadian dollars | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||||
| Revenues and other income | |||||||||||||||||||||||||||||
Revenues (a) (b) | — | — | — | — | — | — | 46,918 | 51,359 | 50,702 | ||||||||||||||||||||
Intersegment sales | — | — | — | (22,404) | (24,962) | (23,125) | — | — | — | ||||||||||||||||||||
Investment and other income (note 8) | 65 | 86 | 143 | — | — | — | 160 | 173 | 267 | ||||||||||||||||||||
| Total revenues and other income | 65 | 86 | 143 | (22,404) | (24,962) | (23,125) | 47,078 | 51,532 | 50,969 | ||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||
Exploration (note 15) | — | — | — | — | — | — | 7 | 3 | 5 | ||||||||||||||||||||
Purchases of crude oil and products | — | — | — | (22,396) | (24,955) | (23,120) | 29,807 | 33,184 | 32,399 | ||||||||||||||||||||
Production and manufacturing | 21 | 17 | — | — | — | — | 7,269 | 6,599 | 6,879 | ||||||||||||||||||||
Selling and general (note 11) | 588 | 154 | 80 | (8) | (7) | (5) | 1,386 | 945 | 857 | ||||||||||||||||||||
| Federal excise tax and fuel charge | — | — | — | — | — | — | 1,715 | 2,535 | 2,402 | ||||||||||||||||||||
Depreciation and depletion (note 11) | 454 | 40 | 29 | — | — | — | 2,579 | 1,983 | 1,907 | ||||||||||||||||||||
| Non-service pension and postretirement benefit | 41 | 3 | 82 | — | — | — | 41 | 3 | 82 | ||||||||||||||||||||
Financing (note 12) | 26 | 37 | 62 | — | — | — | 12 | 41 | 69 | ||||||||||||||||||||
| Total expenses | 1,130 | 251 | 253 | (22,404) | (24,962) | (23,125) | 42,816 | 45,293 | 44,600 | ||||||||||||||||||||
Income (loss) before income taxes | (1,065) | (165) | (110) | — | — | — | 4,262 | 6,239 | 6,369 | ||||||||||||||||||||
Income tax expense (benefit) (note 3) | (261) | (36) | (22) | — | — | — | 994 | 1,449 | 1,480 | ||||||||||||||||||||
Net income (loss) | (804) | (129) | (88) | — | — | — | 3,268 | 4,790 | 4,889 | ||||||||||||||||||||
Cash flows from (used in) operating activities | (282) | 69 | (37) | 40 | (12) | 10 | 6,708 | 5,981 | 3,734 | ||||||||||||||||||||
Capital and exploration expenditures (c) | 124 | 187 | 175 | — | — | — | 2,027 | 1,867 | 1,778 | ||||||||||||||||||||
| Property, plant and equipment | |||||||||||||||||||||||||||||
| Cost | 1,349 | 1,226 | 1,038 | — | — | — | 60,031 | 58,048 | 56,200 | ||||||||||||||||||||
| Accumulated depreciation and depletion | (457) | (410) | (371) | — | — | — | (29,168) | (27,241) | (25,365) | ||||||||||||||||||||
Net property, plant and equipment (d) (f) (note 11) | 892 | 816 | 667 | — | — | — | 30,863 | 30,807 | 30,835 | ||||||||||||||||||||
Total assets | 3,658 | 2,962 | 2,366 | (2,036) | (164) | (474) | 42,309 | 42,938 | 41,199 | ||||||||||||||||||||
(b)Revenues include both revenue within the scope of ASC 606 and outside the scope of ASC 606. Trade receivables in "Accounts receivable - net" reported on the Consolidated balance sheet include both receivables within the scope of ASC 606 and outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives. Contractual terms, credit quality and type of customer are generally similar between contracts within the scope of ASC 606 and those outside it.
| Revenues | |||||||||||
| millions of Canadian dollars | 2025 | 2024 | 2023 | ||||||||
| Revenue from contracts with customers | 38,678 | 40,901 | 44,465 | ||||||||
Revenue outside the scope of ASC 606 | 8,240 | 10,458 | 6,237 | ||||||||
| Total | 46,918 | 51,359 | 50,702 | ||||||||
(c)Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions and the company’s share of similar costs for equity companies. CAPEX excludes the purchase of carbon emission credits.
(d)Includes property, plant and equipment under construction of $3,467 million (2024 - $3,632 million, 2023 - $3,251 million).
(e)In 2025 and 2024, benzene and aromatic solvents are reported under the Downstream segment, whereas in 2023, they were reported under the Chemicals segment. The company has determined that the impact of this change is not material; therefore, the comparative periods have not been recast.
(f)In 2025, in conjunction with the company signing an agreement to sell the Calgary Imperial Campus, the Upstream segment transferred the asset to the Corporate and other segment for $466 million. The effects of this transaction have been eliminated for consolidation purposes. Prior periods have not been recast.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 24, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.