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“Exxon Mobil’s First Quarter Earnings: Challenges and Disputes in the Oil Industry”

Exxon Mobil‘s first-quarter earnings fell short of expectations, reflecting challenges in the industry such as declining refining margins and plunging natural gas prices. Despite this, the company’s stock saw a marginal decline of less than 1% in early trading.

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Exxon Mobil

Here’s a breakdown of Exxon’s first-quarter performance compared to Wall Street’s projections, based on analysts’ estimates from LSEG:

Earnings per share: $2.06 vs. $2.20 expected
Revenue: $83.08 billion vs. $78.35 billion expected
The nation’s largest oil company reported a net income of $8.22 billion, or $2.06 per share, marking a 28% decrease from the earnings of $11.43 billion, or $2.79 per share, recorded in the same period last year.

While oil prices have surged more than 16% this year and gasoline futures have seen a notable increase of nearly 32%, Exxon’s performance has been hindered by challenges elsewhere in the industry. Natural gas prices have plummeted by 37% this year, and refining margins remain lower compared to a year ago. Similar issues were faced by Chevron in the same quarter.

Although Exxon’s revenue surpassed expectations, reaching $83.08 billion, it was lower than the previous year’s figure of $86.56 billion.

Exxon Mobil The company’s fuel business witnessed a significant decline in earnings, dropping by 67% to $1.38 billion compared to $4.18 billion in the previous year, primarily due to reduced refining margins. Conversely, profits from the chemical products segment more than doubled to $785 million, up from $371 million in the same quarter last year.

Exxon is currently embroiled in a dispute with Chevron regarding the latter’s proposed acquisition of Hess Corp. Exxon has brought Chevron to arbitration court, claiming rights to Hess’ assets in Guyana under a joint operating agreement.

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