Exxon Mobil Experiences $1.5 Billion Earnings Hit in Q2

Exxon Mobil Corp. anticipates a $1.5 billion drop in earnings due to lower oil and gas prices in the second quarter. Oil prices caused a $1 billion decline while gas contributed another $500 million hit compared to the first quarter. European rival Shell Plc also expects significantly lower trading earnings.

The outlook for Exxon and Shell suggests a challenging quarter for the industry. Trade tensions, increased supply from OPEC, and geopolitical events impacted oil prices. Exxon predicts a $300 million boost from refining margins, but operational performance changes are not factored into the guidance.

Exxon’s guidance aligns with analysts’ estimates for the second quarter. RBC Capital Markets analyst Biraj Borkhataria notes that Exxon’s smaller trading organization compared to Shell helped mitigate some issues. The company’s earnings are influenced by market pricing and do not account for operational changes.

Read more at Yahoo Finance: Exxon Sees $1.5 Billion Earnings Hit From Lower Oil, Gas Prices