Exxon Forecasts Decline in First-Quarter Profit Amid Weaker Oil, Gas Prices
(Reuters) — Exxon Mobil on Wednesday signaled first-quarter operating results would drop over the prior quarter on weaker oil, gas prices and a big loss in fuel derivatives, a securities filing showed.
The drop follows two years of strong oil and fuel prices that turned the largest U.S. oil company into one of the most profitable energy companies globally. Last year, it posted a record profit for the first quarter at $11.4 billion.
The biggest impact in the latest quarter came from weak natural gas prices and fuel derivatives, which reversed course after run-ups last year.
Overall, the snapshot shows about $6.65 billion in operating profit for the quarter, compared to $11.6 billion in the same quarter a year ago and $7.63 billion in the fourth quarter.
Investors expect the company to post an adjusted per share profit of $2.21, compared to the year-ago's $2.83, according to financial firm LSEG's consensus estimate.
Natural gas prices fell to multi-year lows during the quarter. Overall weaker oil and gas prices alone cut Exxon's profits by about $600 million compared to the fourth quarter of 2023.
The company also said fuel derivatives undercut gains in gasoline and diesel margins, costing it about $1.1 billion compared to the fourth quarter. Refining maintenance costs also jumped last quarter, the filing showed.
Last year's financial gains led Exxon to pursue all-stock deals for U.S. shale oil producer Pioneer Natural Resources and carbon storage firm Denbury. Its shares were up 16.2% during the first quarter and finished at $119.30 on Wednesday.
The company also claims a preemptive right over Hess Corp's Guyana assets, the prize in Chevron's $53 billion offer for Hess. That claim is being considered by an international arbitration panel.
The company is expected to post full results for the period on April 26.
Related News
Related News
- Keystone Oil Pipeline Resumes Operations After Temporary Shutdown
- Freeport LNG Plant Runs Near Zero Consumption for Fifth Day
- Biden Administration Buys Oil for Emergency Reserve Above Target Price
- Mexico Seizes Air Liquide's Hydrogen Plant at Pemex Refinery
- Enbridge to Invest $500 Million in Pipeline Assets, Including Expansion of 850-Mile Gray Oak Pipeline
Comments