ExxonMobil Expects to Report a Profit Gusher in Q1. Can It Repeat That Feat With Crude Prices Falling?
From Yahoo Finance: 2025-04-06 12:17:00
ExxonMobil anticipates a $900 million increase in first-quarter profits, driven by higher oil and gas prices and improved refining margins. However, market conditions have since deteriorated, with crude prices falling due to concerns over global economic impact from higher tariffs.
Preliminary figures show ExxonMobil’s first-quarter earnings are expected to be $900 million higher than the previous quarter and $100 million higher than the same period last year. The increase is attributed to rising oil and gas prices, particularly due to a surge in natural gas demand during a cold U.S. winter.
While the first quarter saw a boost in profits for ExxonMobil, oil and gas prices have since dropped significantly in the second quarter. Brent Crude fell over 10% due to tariff concerns, impacting the company’s earnings. Any further decline in prices could have a notable effect on future results.
Despite short-term fluctuations in oil prices, ExxonMobil remains focused on long-term growth by investing in low-cost assets and cost-saving initiatives. The company’s strategy aims to deliver substantial additional earnings and cash flow by 2030, despite current market challenges.
ExxonMobil’s future earnings may be affected by fluctuating oil prices, but the company’s investment in high-margin assets and cost-cutting measures should help mitigate the impact. While near-term volatility is expected, Exxon’s long-term prospects remain strong, making it an attractive option for investors seeking stability and growth.