Is Imperial Oil / IMO Halal?
Screener: Yes — Imperial Oil passes Shariah screening as of September 2026. Integrated oil and gas is a permissible business, debt-to-market-cap is ~4.7% against a 33% ceiling, and all investment and other income is ~0.4% of revenue against the 5% screen. This is a screening result, not a fatwa — screen again quarterly.
Screen 1: Business activity — pass
Imperial Oil Limited is an integrated Canadian oil and gas company, majority-owned by ExxonMobil, with upstream oil sands production (Kearl, Cold Lake), refining (Strathcona, Sarnia, Nanticoke), chemicals, and Esso-branded fuel marketing across Canada. Oil and gas production, refining, and fuel marketing are not prohibited industries under any major methodology (AAOIFI, Dow Jones Islamic Market, FTSE, MSCI Islamic). Pass.
Screen 2: Financial ratios — pass
From Imperial Oil's Q2 2026 filing (reported July 31, 2026) and market data observed September 2026:
- Gross interest-bearing debt: C$3,988M (C$3,969M long-term debt + C$19M notes and loans payable at June 30, 2026). Cash and cash equivalents of C$2,839M offset most of it; the company reported debt-to-capitalization of 13.9%.
- Market cap: ≈ C$85.3B (September 2026; ~C$176.31 × 483.6M shares).
- Debt-to-market-cap: (3,988 ÷ 85,260) × 100 ≈ 4.7% — well below the 33% ceiling. Pass.
- Non-compliant income: Imperial does not separately disclose interest income; its entire "investment and other income" line was C$111M for the six months ended June 30, 2026 against C$28,508M of total revenues and other income — ≈ 0.4%, so the interest-income portion is necessarily below the 5% screen. Pass.
Q2 2026 results (July 31, 2026)
Imperial Oil reported Q2 net income of C$2,190M (C$4.52 per share, up from C$949M a year earlier) and six-month net income of C$3,130M. Revenue was C$16,062M for the quarter (+43% year over year) and C$28,508M for the half. Operating cash flow was C$2.7B in the quarter. The company trimmed its 2026 refinery throughput guidance to 370,000–380,000 barrels per day after unplanned downtime and a rail logistics issue at Strathcona.
The dividend (C$0.87 quarterly)
Imperial Oil pays a quarterly dividend of C$0.87 per share (C$3.48 annualized, roughly a 1.9–2.0% yield at recent prices), most recently declared with payment on October 1, 2026 to shareholders of record September 4, 2026. Dividend facts are reported as published; questions about the treatment of income are for your own scholar.
What could change the screener
- A large debt-funded acquisition or a sharp market-cap decline pushing the debt ratio toward the 33% ceiling — the ratio is ~4.7%, so there is wide headroom today.
- Entry into, or growth of, a non-compliant business segment above screening thresholds.
- Non-operating income rising materially relative to revenue (currently ~0.4% against a 5% screen).
Halal alternatives and peers
Imperial joins Canada's other integrated producers that screen clean: Suncor (PASS, ~8.7%), Cenovus (PASS, ~10.5%), and Canadian Natural Resources (PASS, ~10.5%). See our full screener database or the Shariah-compliant ETF route (WSHR, SPUS) in our complete guide.
FAQ
Is Imperial Oil halal to invest in?
As of September 2026: yes, under the AAOIFI-style screening we apply. Imperial Oil's integrated oil and gas business is permissible, its debt-to-market-cap is ≈4.7% (under the 33% ceiling), and its entire investment-and-other-income line is ≈0.4% of revenue (under the 5% income screen). This is a screening result, not a religious ruling.
How was the 4.7% debt ratio calculated?
From Imperial Oil's Q2 2026 filing: total debt of C$3,988M (C$3,969M long-term debt plus C$19M notes and loans payable) at June 30, 2026, against a market cap of ≈C$85.3B (September 2026; ~C$176.31 × 483.6M shares) — (3,988 ÷ 85,260) × 100 ≈ 4.7%, well under the 33% ceiling. Debt-to-capitalization was reported at 13.9%.
What does Imperial Oil do?
Imperial Oil is an integrated Canadian oil and gas company — majority-owned by ExxonMobil — with upstream oil sands production (Kearl, Cold Lake), refining (Strathcona, Sarnia, Nanticoke), chemicals, and Esso-branded fuel marketing across Canada. Oil and gas production, refining, and fuel marketing are permissible businesses under the major screening methodologies.
What does Imperial Oil's dividend look like?
Imperial Oil pays a quarterly dividend of C$0.87 per share (C$3.48 annualized, roughly a 1.9–2.0% yield at recent prices), most recently declared with payment on October 1, 2026 to shareholders of record September 4, 2026. Dividend details are factual information; questions about treatment of income are for your own scholar.
What do Zoya, Musaffa, and ShariaPortfolio say?
No verified current third-party screening of Imperial Oil was found in public sources during our September 2026 research — not on Zoya, Musaffa, or ShariaPortfolio. Our PASS result is an independent application of the AAOIFI-style screen; consult a scholar or screener of your choice before investing.