EXXONMOBIL signalled on Thursday that higher crude oil and natural gas prices as well as stronger oil refining margins will help lift its first-quarter earnings by about US$900 million compared to the previous quarter.
The largest US oil major gets the bulk of its operating profit from producing oil and gas, and its earnings snapshot is closely watched for clues on how the broader industry will fare when companies begin reporting quarterly results in a few weeks.
Benchmark Brent crude prices averaged US$74.98 a barrel during the first quarter, up 1.3 per cent from the prior quarter but down 9 per cent from a year ago. US natural gas prices rose 30 per cent compared to the fourth quarter due to higher demand from a cold winter in the US.
The company indicated in an SEC filing that stronger oil refining margins will also help boost earnings by US$300 million to US$700 million compared to the fourth quarter.
Analysts expect Exxon to post an adjusted profit of US$1.70 per share in the first quarter, according to estimates compiled by LSEG, up from US$1.67 per share in the fourth quarter. Exxon said it would release its first-quarter earnings results on May 2.
The earnings snapshot covers a tumultuous first quarter in which US President Donald Trump’s administration announced and then walked back tariffs on energy imports from Canada and Mexico.
The Organization of the Petroleum Exporting Countries also said in March it would begin increasing oil output for the first time since 2022.
Exxon reported US$7.39 billion in earnings in the fourth quarter and US$8.22 billion in earnings during the first quarter of last year.
Shares of Exxon rose marginally in extended trading, having closed 5.3 per cent lower tracking sharp declines in crude prices after Opec+ agreed to a surprise increase in output a day after Trump announced sweeping new import tariffs. REUTERS
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