Exxon Mobil reported lower-than-expected first-quarter earnings due to eroding refining margins and collapsing natural gas prices. The company’s stock was down nearly 3% in early trading. In comparison to Wall Street expectations, Exxon reported earnings per share of $2.06, lower than the expected $2.20, and revenue of $83.08 billion, higher than the anticipated $78.35 billion.
The nation’s largest oil producer saw a 28% decrease in net income to $8.22 billion, or $2.06 per share, compared to $11.43 billion, or $2.79 per share, in the same quarter the previous year. Despite the rally in oil and gasoline prices, Exxon’s profits were negatively impacted by falling natural gas prices and lower refining margins. Similar challenges were faced by Chevron in the same quarter, with lower revenue compared to the previous year.
Oil and gas production profits for Exxon fell 12% to $5.67 billion, due to lower natural gas prices. The company’s output was slightly lower at 3.78 million barrels per day compared to 3.83 million bpd in the same quarter last year. Earnings from the fuel business saw a significant decline of 67% to $1.38 billion, while profits from the chemical products segment more than doubled to $785 million.
Exxon is currently involved in a dispute with Chevron over the latter’s pending acquisition of Hess Corp. Exxon has taken Chevron to arbitration court to defend its rights to Hess’ assets in Guyana under a joint operating agreement. The outcome of this dispute could have significant implications for both companies. This is a developing story, and updates are expected as the situation unfolds.
Despite the challenges faced by Exxon in the first quarter, the company remains a major player in the oil and gas industry. With a focus on maintaining profitability in a volatile market environment, Exxon will need to continue to adapt to changing market conditions in order to remain competitive. Investors and industry analysts will be closely monitoring Exxon’s performance in the coming quarters to gauge its ability to navigate challenges and capitalize on opportunities in the energy sector.
