Exxon Signals Q1 Upstream Profit Bump From Iran War, Downstream Boost in Later Quarters

exxonmobile 1200x810 nov 2024

Summary

  • Upstream earnings could gain from higher oil and gas prices
  • Exxon to release full Q1 results on May 1
  • Downstream earnings hit by timing effects, but Exxon expects profits to rebound in later quarters
  • CFO Hansen says negative impacts from ​trading program are temporary and will unwind over time

(Reuters) – Higher oil and gas ‌prices due to the U.S.-Israeli war on Iran could boost Exxon Mobil’s first-quarter upstream earnings by up to $2.9 billion, outweighing the impact of disruptions to some of its oil and gas production in the Middle East, the U.S. oil producer said on Wednesday.


Get the Latest US Focused Energy News Delivered to You! It’s FREE:


Downstream earnings, however, could see ​a hit of about $5.3 billion in part because of timing effects, though Exxon said in a regulatory filing it ​will see a lift in earnings in later quarters when oil and gas shipments are ⁠delivered.

The conflict that began on February 28 sent oil prices skyrocketing as much as 65%, with some oil and gas ​fields in the Middle East shutting in production after the Strait of Hormuz – a conduit for a fifth of global ​energy flows – was effectively closed. Benchmark Brent crude prices averaged $78.38 per barrel during the first quarter, up 24% from the previous three months, according to LSEG data.

Exxon said its first-quarter oil and gas production will be 6% lower due to the war compared with the ​fourth quarter, when it produced 5 million barrels of oil equivalent per day. Assets in Qatar and the UAE ​accounted for 20% of Exxon’s global oil production in 2025, the company said in the filing.

Exxon will report its full first-quarter results ‌on ⁠May 1. Investors closely watch the company’s earnings snapshot, which details the market factors that impacted earnings, for signals about how the broader oil sector will perform when results are released next month.

EARNINGS MISMATCH WILL “UNWIND OVER TIME”

Timing effects could lower downstream first-quarter earnings by $3.3 billion to $4.1 billion compared with the fourth quarter.

The “unusually large, negative timing impact” is temporary and results ​from accounting rules in the ​trading program, Neil Hansen, ⁠Exxon’s chief financial officer, said in a statement.

Like other oil firms, Exxon hedges the sale of crude, natural gas and refined products using financial derivatives in order to mitigate the ​risk of price changes during the time it takes to ship cargoes to customers, ​which could ⁠take weeks between the U.S. and Asia.

The value of the physical shipment is not reflected in earnings until the transaction is complete, the company said in the filing.

Share This:


More News Articles

 

  • Related Posts

    Devon Energy Gets $8 Billion Offer for Marcellus Position, Sources Say

    By and Stone Ridge offers around $8 billion for Devon’s Marcellus shale position, sources say The Stone Ridge offer would be supported by largest ever ABS financing in US oil…

    Oil Falls on Hopes for US-Iran Ceasefire Agreement

    By Brent and WTI register steepest weekly losses since April US-Iran ceasefire deal not finalised US crude, gasoline and distillate stockpiles fell last week -EIA HOUSTON, May 29 (Reuters) –…

    Have You Seen?

    Iran, US Tentatively Agree to Renew Truce for 60 Days

    • May 30, 2026
    Iran, US Tentatively Agree to Renew Truce for 60 Days

    EBRD Supports Sustainable Agriculture Development Through Green Financing In Mongolia

    • May 30, 2026
    EBRD Supports Sustainable Agriculture Development Through Green Financing In Mongolia

    Koraam Powered by Kosol Energie Secures 4th Order from MSEDCL for Solar Water Pumping Systems

    • May 30, 2026
    Koraam Powered by Kosol Energie Secures 4th Order from MSEDCL for Solar Water Pumping Systems

    Indonesia Pushes Ahead With 100 GW Solar Power Plan, Focuses On Fast-Track Renewable Energy Growth

    • May 30, 2026
    Indonesia Pushes Ahead With 100 GW Solar Power Plan, Focuses On Fast-Track Renewable Energy Growth

    Asia-Pacific Dominates Global Solar Growth With 68% Share Of Worldwide Installations

    • May 30, 2026
    Asia-Pacific Dominates Global Solar Growth With 68% Share Of Worldwide Installations

    PM Surya Ghar Scheme Solarises 40 Lakh Households, Accelerating India’s Rooftop Solar Growth

    • May 30, 2026
    PM Surya Ghar Scheme Solarises 40 Lakh Households, Accelerating India’s Rooftop Solar Growth

    Oil Falls on Hopes for US-Iran Ceasefire Agreement

    • May 30, 2026
    Oil Falls on Hopes for US-Iran Ceasefire Agreement

    Devon Energy Gets $8 Billion Offer for Marcellus Position, Sources Say

    • May 30, 2026
    Devon Energy Gets $8 Billion Offer for Marcellus Position, Sources Say

    US Crude Production Largely Steady on the Month in March, EIA Says

    • May 29, 2026
    US Crude Production Largely Steady on the Month in March, EIA Says

    Chevron Won’t Pay Toll to Move Ships Through Hormuz, CEO Tells Bloomberg TV

    • May 29, 2026
    Chevron Won’t Pay Toll to Move Ships Through Hormuz, CEO Tells Bloomberg TV