Exxon Mobil Corp on Tuesday signaled in a securities filing that first-quarter operating profits dropped about 25% from last year's record levels as oil and gas prices eased.
Operating results could drop to about $9.6 billion,
compared to $12.8 billion net profit from the fourth quarter,
according to a snapshot of factors affecting first quarter
earnings.
The drop was driven by the exploration business, with
Exxon signaling operating results from pumping oil and gas would
be about $5.2 billion, down from the $8.2 billion in last year's
final quarter.
Global oil prices fell about 7% to an average of $82 per
barrel while U.S. gas prices fell by more than half in the most
recent period, both compared to the final quarter of 2022.
Global oil settled on Tuesday near $85 a barrel.
Profits from refining oil into gasoline, diesel and
other energy products slipped to about $3.55 billion on higher
maintenance costs and weaker margins, the filing indicated.
Its chemicals business was flat compared with the fourth
quarter at about $300 million in operating profit, the snapshot
showed. Earnings from motor oils fell to about $500 million from
$800 million in the fourth quarter.
Full results are expected to be released on April 28. Exxon shares were off about 1% on Tuesday at $115.
The earnings drop from weaker oil prices might be temporary. A surprise production cut disclosed on Sunday by the Organization of the Petroleum Exporting Countries and allies including Russia (OPEC+) have Wall Street analysts forecasting crude could reach $100 per barrel this year. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Exxon posted record quarterly profits in 2022 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Sabrina Valle in Houston; Editing by Sriraj Kalluvila)
