The energy giant reported earnings of $8.22billion, or $2.06 per share, for the three months ending March 31, down from $11.43billion, or $2.79 per share, a year earlier
Exxon Mobil’s profits took a hit in the first quarter as natural gas prices plummeted and industry refining margins decreased.
The energy giant reported earnings of $8.22billion, or $2.06 per share, for the three months ending March 31, down from $11.43billion, or $2.79 per share, a year earlier. Despite not meeting Wall Street expectations, Exxon does not adjust its reported results based on one-time events such as asset sales. Analysts had predicted earnings of $2.19 per share.
Shares saw a slight dip before the market opened on Friday. The Texas-based company’s revenue totalled $83.08 billion, a decrease from $86.56billion the previous year. Wall Street had forecasted revenue of $86.6billion.
Production in Guyana exceeded expectations, reaching over 600,000 oil-equivalent barrels per day, according to the company. Exxon embarked on a shopping spree last year when oil prices were on the rise. In July, it announced it would pay $4.9 billion for Denbury Resources, an oil and gas producer that has ventured into carbon capture and storage and stands to gain from changes in US climate policy.
Exxon outbid the competition in October with its $60 billion acquisition of shale producer Pioneer Natural Resources. However, the Federal Trade Commission, responsible for enforcing federal antitrust laws, has requested further information from the firms about the proposed deal.
This request comes as the agency assesses whether the merger could violate US antitrust laws. The surge in cash reserves for major producers has fueled a wave of consolidation within the energy sector. In October, Chevron announced its $53 billion acquisition of Hess Corp.
The ongoing conflict in the Middle East, specifically the war between Israel and Hamas, is putting a strain on oil markets, potentially igniting a wider conflict in the region. While the attacks on Israel haven’t directly disrupted global oil supplies, according to the US Energy Information Administration, “they raise the potential for oil supply disruptions and higher oil prices.”
Elsewhere in the sector, Chevron Corp. reported a first-quarter profit of $5.5billion, or $2.97 per share. Its adjusted profit was $2.93 per share. These results exceeded Wall Street expectations, with analysts surveyed by Zacks predicting earnings of $2.84 per share. However, Chevron does not adjust its reported results based on one-time events such as asset sales.
The oil firm reported a revenue of $48.72billion, falling below Wall Street’s prediction of $49.94billion. Chevron’s shares took a hit in premarket trading.
