Exxon Mobil first quarter profits sink to lowest level in years as
energy prices fade
[May 02, 2025] By
MICHELLE CHAPMAN
Exxon Mobil’s first quarter profit slumped to the lowest level in years,
stung by weaker crude prices and higher costs.
The oil and gas giant earned $7.71 billion, or $1.76 per share, for the
three months ended March 31. It earned $8.22 billion, or $2.06 per
share, in the year-ago period.
The results topped Wall Street expectations, but Exxon does not adjust
its reported results based on one-time events such as asset sales.
Analysts polled by Zacks Investment Research expected earnings of $1.74
per share.
Revenue totaled $83.13 billion, which fell short of the $84.15 billion
that analysts were calling for.
This week, a barrel of U.S. benchmark crude fell below $60, a level at
which many producers can no longer turn a profit.
“In this uncertain market, our shareholders can be confident in knowing
that we’re built for this,” Chairman and CEO Darren Woods said in a
statement Friday. “The work we’ve done to transform our company over the
past eight years positions us to excel in any environment.”
Crude oil is down nearly 18% for the year to date, according to FactSet.
Oil prices plummeted last month, at one point sinking to a four-year low
in anticipation of slowing economic growth due to a burgeoning trade
war.
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 Trump announced far-reaching tariffs
on nearly all U.S. trading partners April 2 and then reversed
himself a few days later after a market meltdown, suspending the
import taxes for 90 days. Amid the uncertainty for both U.S.
consumers and businesses, the Commerce Department said Wednesday
that the U.S. economy shrank 0.3% from January through March, the
first drop in three years.
Rapidly falling oil prices signal pessimism about
economic growth and can be a harbinger of a recession as
manufacturers cut production, businesses cut travel costs and
families rethink vacation plans.
And there appears to be little appetite for turn off the spigots by
some of the world's largest producers.
In December eight members of the OPEC+ alliance of oil exporting
countries signaled they would not cut production as they compete
with production from non-allied oil producing countries.
The OPEC+ members decided at the time to postpone production
increases that had been scheduled to take effect Jan. 1. The plan
had been to start gradually restoring 2.2 million barrels per day
over the course of 2025.
That process was pushed back to April 1 and production increases
will gradually take place over 18 months until October 2026.
Shares of Exxon Mobil rose slightly before the market open.
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