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

    EQT, Glencore Commit to Buy More LNG from Commonwealth, Filing Shows

    Summary Commonwealth secures enough LNG sales to begin project financing process Glencore’s total LNG offtake rises to 3 mtpa, EQT’s to 2 mtpa, filing shows EQT’s new ​contract replaces JERA’s…

    ConocoPhillips Visits Venezuela to Evaluate Oil Opportunities 

    ConocoPhillips said on Thursday it is sending a small evaluation team to Venezuela this week to evaluate oil and gas opportunities. The U.S. oil producer left the South American country in…

    Have You Seen?

    EQT, Glencore Commit to Buy More LNG from Commonwealth, Filing Shows

    • April 10, 2026
    EQT, Glencore Commit to Buy More LNG from Commonwealth, Filing Shows

    Saudi Oil Output and Key Pipeline Hit as Attacks Cut Supply

    • April 10, 2026
    Saudi Oil Output and Key Pipeline Hit as Attacks Cut Supply

    Oil Prices Climb Toward $100 as Iran Ceasefire Doubts Deepen

    • April 10, 2026
    Oil Prices Climb Toward $100 as Iran Ceasefire Doubts Deepen

    Chinese Refiners Buy Iranian Crude at Premium

    • April 10, 2026
    Chinese Refiners Buy Iranian Crude at Premium

    Tanker with Russian Flag Transits Hormuz

    • April 10, 2026
    Tanker with Russian Flag Transits Hormuz

    Levanta Renewables Awards EPC Contract to CEEC for 166 MWp Solar and BESS Project in Philippines

    • April 10, 2026
    Levanta Renewables Awards EPC Contract to CEEC for 166 MWp Solar and BESS Project in Philippines

    Tauron To Supply Over 17,000 MWh Of Renewable Energy To Katowice Airport In Poland Over The Next Year

    • April 10, 2026
    Tauron To Supply Over 17,000 MWh Of Renewable Energy To Katowice Airport In Poland Over The Next Year

    KNESS Baltic to Deploy 55 MWh Energy Storage Across Solar Plants in Latvia

    • April 10, 2026
    KNESS Baltic to Deploy 55 MWh Energy Storage Across Solar Plants in Latvia

    AFRY Secures Owner’s Engineer Role for Solar-Plus-Storage Project at KLIA Aeropolis in Malaysia

    • April 10, 2026
    AFRY Secures Owner’s Engineer Role for Solar-Plus-Storage Project at KLIA Aeropolis in Malaysia

    Sonnedix Secures 7.9 TWh In Italy’s Energy Release 2.0 Scheme, Capturing 11.7% Of Total Awarded Volume

    • April 10, 2026
    Sonnedix Secures 7.9 TWh In Italy’s Energy Release 2.0 Scheme, Capturing 11.7% Of Total Awarded Volume