11:48 AM EST, 01/31/2025 (MT Newswires) -- (Adds analyst comment and updates shares.)

Imperial Oil ( IMO ) on Friday recorded a big earnings beat for the fourth quarter and raised its dividend by 20% to reflect confidence in its plans as the company enters 2025.

While the company's profit fell to $1.23 billion, or $2.37 per share, from $1.37 billion, or $2.47 per share in the year-prior quarter, it still easily beat the FactSet consensus estimate of $2.02 per share.

Revenue fell 3.8% to $12.61 billion from $13.11 billion.

Imperial, 69.6% owned by Exxon Mobil ( XOM ) , reported quarterly production from its Kearl oil-sands mine of 299,000 total gross oil-equivalent barrels per day (212,000 barrels Imperial's share), and highest-ever full year total gross production of 281,000 barrels per day (200,000 barrels Imperial's share). It also reported Cold Lake oil-sands production of 157,000 gross oil-equivalent barrels per day and full year production of 148,000 barrels per day, supported by strong Grand Rapids performance.

Also it had quarterly upstream production of 460,000 gross oil-equivalent barrels per day, and highest annual production in over 30 years of 433,000 barrels per day; and "strong" Downstream operating performance with refinery capacity utilization of 95% for the quarter and 92% for the year, at the high end of guidance.

"Our robust financial results in 2024 were driven by outstanding operational performance. I'm proud of Imperial's ability to deliver on all of its 2024 volume commitments including a new annual production record at Kearl. Downstream and Cold Lake performances were both at the upper end of our guidance, which was supported by excellent turnaround execution and strong Grand Rapids production," said Brad Corson, Imperial Oil's ( IMO ) chief executive.

The company declared a quarterly dividend of $0.72 per share, up 20% from $0.60 per share, with the first higher payout made April 1 to shareholders of record on March 5.

"Our 20% increase in the dividend reflects confidence in our plans as we enter 2025 with strong operational momentum underpinned by upstream production growth, strong downstream utilization and a continued focus on expense reduction," Corson said.

National Bank of Canada maintained its sector-perform rating and $110.00 price target following the results.

The bank said the company's production volumes and cash flow per share aligned with expectations.

Imperial Oil ( IMO ) shares were last seen down $2.49 to $101.00 on the Toronto Stock Exchange.

Price: 100.62, Change: -2.87, Percent Change: -2.77