ExxonMobil Corp has reported a major profit drop from its announced first quarter results on Friday.
The oil giant missed analysts’ estimates with a 28 per cent year-on-year drop in first quarter profits as weaker refining margins and lower natural gas prices offset volume gains.
Latest results from oil and gas companies including Chevron and TotalEnergies reflect a sharp downturn in natural gas prices after a warmer than usual Northern Hemisphere winter cut demand and pushed up inventories.
Exxon, which is in the process of closing a $60 billion deal for top shale oil producer Pioneer Natural Resources, posted lower first-quarter earnings of $8.22 billion, down from an $11.43 billion net profita year ago.
The stock was down 1.8 per cent in pre-market trading at $119.25 after reporting a profit per share of $2.06, 6 per cent shy of Wall Street analysts’ consensus for $2.20 per share, LSEG estimates showed.
Earnings from oil and gas production fell 14 per cent on lower natural gas prices and refining tumbled 67 per cent on weaker fuel margins, mark-to-market derivatives, and higher maintenance costs.
Its chemicals business, however, was a standout, with earnings more than doubling on lower input costs and higher margins, the company said.
Earnings of $8.22 billion for the first quarter ended March 31 were off 29 per cent compared to adjusted profit of $11.62 billion a year earlier.
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