(Reuters) – Exxon Mobil Corp (XOM.N) on Tuesday signaled in a securities filing that first-quarter operating profits dropped about 25% from last year’s record levels as oil and gas prices eased.
Operating results could drop to about US$9.6 billion, compared to US$12.8 billion net profit from the fourth quarter, according to a snapshot of factors affecting first quarter earnings.
The drop was driven by the exploration business, with Exxon signaling operating results from pumping oil and gas would be about US$5.2 billion, down from the US$8.2 billion in last year’s final quarter.
Global oil prices fell about 7% to an average of US$82 per barrel while U.S. gas prices fell by more than half in the most recent period, both compared to the final quarter of 2022. Global oil settled on Tuesday near US$85 a barrel.
Profits from refining oil into gasoline, diesel and other energy products slipped to about US$3.55 billion on higher maintenance costs and weaker margins, the filing indicated.
Its chemicals business was flat compared with the fourth quarter at about $300 million in operating profit, the snapshot showed. Earnings from motor oils fell to about $500 million from $800 million in the fourth quarter.
Full results are expected to be released on April 28.
Exxon shares were off about 1% on Tuesday at $115.
The earnings drop from weaker oil prices might be temporary. A surprise production cut disclosed on Sunday by the Organization of the Petroleum Exporting Countries and allies including Russia (OPEC+) have Wall Street analysts forecasting crude could reach $100 per barrel this year.
