Energy
Friday, April 26th, 2024 4:45 pm EDT
Key Points
- Exxon Mobil reported first-quarter earnings below expectations due to eroding refining margins and collapsing natural gas prices.
- Despite revenue exceeding expectations at $83.08 billion, down from $86.56 billion a year ago, the company’s net income of $8.22 billion, or $2.06 per share, marked a 28% decrease from the previous year.
- Exxon faced pressure from lower refining margins and a 37% drop in natural gas prices, resulting in a 12% decline in oil and gas production profits to $5.67 billion. The company’s fuel business saw earnings plunge 67% to $1.38 billion, while its chemical products segment saw profits more than double to $785 million. Additionally, Exxon is engaged in a dispute with Chevron over Chevron’s pending acquisition of Hess Corp., particularly concerning Exxon’s rights in Guyana assets under a joint operating agreement.
Exxon Mobil reported first-quarter earnings that fell short of expectations, facing challenges from declining refining margins and plummeting natural gas prices. Despite revenue beating expectations at $83.08 billion, down from $86.56 billion a year ago, the company’s net income of $8.22 billion, or $2.06 per share, marked a 28% decrease from the previous year. Exxon CEO Darren Woods attributed the earnings miss to noncash tax and inventory adjustments but highlighted outperformance in cash flow from operations. Lower refining margins and natural gas prices, which dropped by 37% this year, contributed to the decline in profits, similar to challenges faced by Chevron. Oil and gas production profits fell by 12% to $5.67 billion due to lower natural gas prices, despite oil prices rising over 16% this year. Exxon’s fuel business saw earnings decline by 67%, while its chemical products segment saw profits more than double. The company is embroiled in a dispute with Chevron over Chevron’s pending acquisition of Hess Corp., particularly concerning Exxon’s rights in Guyana assets under a joint operating agreement. While Exxon reiterated it’s not seeking to buy Hess, it aims to confirm its preemption rights and explore options regarding compensation. Meanwhile, Chevron expects the Hess deal to close in 2024. Despite the earnings miss, analysts suggest the fundamental outlook for Exxon’s stock remains unchanged, indicating potential resilience in the face of short-term setbacks.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/26/exxon-xom-q1-2024-earnings-report.html
