ExxonMobil has delivered first-quarter earnings of US$4.2 billion (AU$6.4 billion), down from the previous year as financial derivatives trades fell in value and impacted earnings.
The company said earnings for the quarter ended March 31 fell 46 per cent from US$7.7 billion in the first quarter of 2025. Earnings excluding identified items and estimated timing effects were US$8.8 billion versus US$7.6 billion in the same period last year.
Unfavourable estimated timing effects of US$3.9 billion reflect the mismatch between the valuation of financial derivatives and the associated physical transactions, resulting in a timing difference in earnings that unwinds in subsequent periods.
“This quarter demonstrated that ExxonMobil is a fundamentally stronger company than it was just a few years ago, built to perform through disruption and across market cycles,” said Darren Woods, Chairman and CEO.
“The underlying business delivered strong results, reflecting the benefits of the strategy we have consistently executed since 2018. The result is a more resilient, lower-cost business, grounded in advantaged assets, disciplined capital allocation, and execution excellence.”
The company’s advantaged assets and projects that are cheaper and more efficient to operate, carried the heavy lifting this quarter.
Net production in the first quarter reached 4.6 million oil-equivalent barrels per day, with Guyana setting a new quarterly production record of more than 900,000 gross barrels of oil per day.
The Golden Pass LNG terminal in the US achieved first gas, a move set to boost American LNG exports by 5 per cent and shore up global energy security.
Exxon added another US$600 million to its structural cost savings, bringing total permanent savings to US$15.6 billion since 2019.
The company faced some headwinds, including losses on financial hedges due to Middle East supply disruptions and operational hiccups in Kazakhstan, but these were largely offset by higher crude prices and growth in the US Permian Basin.
Looking ahead, Exxon said its Middle East production will fall by 750,000 barrels per day if the Strait of Hormuz remains closed for the second quarter.
If the Strait of Hormuz were to open on May 1, an additional 350,000 oil-equivalent barrels should be added to the quarterly production estimate or roughly 4.4 to 4.7 million oil-equivalent barrels per day.
