Imperial Oil's stock plummeted 5.28% during intraday trading on Friday, as the market reacted negatively to the company's fourth-quarter financial results.

The integrated energy company reported a sharp decline in profit, largely due to lower crude oil prices which reduced upstream realizations. The company noted that global supply outpacing demand led to inventory build-up and a widening price gap between Canadian heavy oil and U.S. crude. Additionally, upstream production of 444,000 gross oil-equivalent barrels per day missed analyst forecasts of 462,000 barrels.

While Imperial Oil beat adjusted earnings per share estimates and announced a 21% increase in its quarterly dividend, these positive developments were overshadowed by significant revenue misses and the substantial year-over-year decline in both earnings and sales.